All Forum Posts by: Kevin Hunter

@Michael Hon, @ Edward B., @Austin Watson, @ Micah Harris: Thank you all for your input, I greatly appreciate it. @Austin Watson, one of my concerns with that is it is in my original home state, CT, but I don't live there any more. They are notoriously brutal in regard to taxes. I live in VA right now but am using a property manager back there. @Edward B., that is exactly what I am worried about. An LLC that looks great on paper until I need it to come through, and then realize it is not effective. @Micah Harris, did you set yours up in Kentucky or a different state. I have read quite a few articles about Nevada and Delaware being the preferred states..... Thoughts?

@Steve Gunasingh, One thing you can try is to call some property management companies in the area you are looking for properties.  I have purchased two of my properties from owners who were using a property manager that I connected with.  We started off just talking local real estate, etc... over a cup of coffee and I mentioned to him that I was looking for properties with tenants in place.  One of his managed properties owner's mentioned to him that he was looking to get out due to being tired of land lording, etc...  I swooped and bought it off market at a reasonable price.  This happened twice with the same property manager.  The tenants stayed in place both times, one actually extended their lease and that property manager now manages both houses for me.  It worked for everyone.  I provided the owner's the ability to get out from the house without needing to displace the tenants and without dealing with dozens of people trampling through their house and disturbing the tenants or pm, the tenants were able to stay in place, and the property manager didn't lose two of his properties due to the sale.  Win, win, win, win!!!

Hi everyone. I am getting ready to close on property number 6. As an intro, my five other properties are all SFH. This one is a four family. Up to this point I have not had an LLC, I have just carried are large umbrella insurance policy. I think it is the time that I set up the LLC for this property and start moving in a direction that will separate and protect my assets individually, to the maximum extent possible.

I am looking for recommendations as to whether to use an attorney to set up the LLC or set one up myself online. Someone suggested corporation.com as one option for a website that I can set it up myself. If the answer is do it myself online, I would love to hear of other online companies that provide the service to do so.

I will be posting the story of my multi-family in success stories after the closing in a couple of weeks!!  Thank you all in advance for your suggestions and feedback.

good luck Tanya.  Keep us in the loop once you get it done.  This is a great area for creative financing solutions!

@Ellie T.  My suggestion is if you are going to go out of area, shop all of the areas you are looking at and compare to each other.  Rhode Island is a good option but what part?  I looked at Providence MFs a couple of years ago and it was difficult to get what I considered to be good cash flow because the taxes were so high on investment properties.  All of the areas the other comments mentioned are good ones as well but you just need to compare and make a smart decision.  Secondly, weigh absentee ownership against local.  This will depend on your preferences.  Are you willing to only check on your property monthly or less, or would you prefer to have a more regular opportunity to check on it?  Those are questions that only you can answer.

If the ARV is 110K, and your going to be into it for 65K plus 10K rehab + 10% unexpected costs then you are at 76K. Add in holding costs and you are at 69% ARV on purchase, then go for it! That assumes your rehab costs are accurate before the 10% cushion.

Landy, First, I would ask BP members in your area for referrals. Short of that, there are acouple of things I always do to check out a property manager: 1. Check their website for available rentals. If they have a large amount they are not aggressive enough. 2. Ask them for referrals. Talk to the owner of their current managed properties. Owners will be very candid with you. 3. Negotiate their fee. I always plan for10%, but aim for 8%. They are almost all flexible and you will never know if you don't ask. 4. Make it very clear that you are shopping around. They will fight for your business then. 5. Visit them at their office. If it is a disaster or unorganized then you know what you can expect out of them at your property. Good luck!

Autocorrect.....what area in NOVA or DC are you looking to invest in?

Welcome.  That is one of the best "intro" posts I have seen here.  This is great site for networking and resources.  What area in move or doc are you looking to invest?? 

One thing to consider, utilize parents as cosigners.  This protects you from the tenants that want to spend their rent money on other things.....