All Forum Posts by: Kumar R

Is there a way to edit the title? Should have read "Long Term Gain?"

Closed on a condo on 11/09/2012. Was rented for a year lease, but the tenant moved out (left without paying some rent) before the end of the lease. Now I decided to the sell the condo and closing date is on 11/11/2013. Would this be a long-term gain? Just want to confirm there no weird one year plus x days rule. thanks.

Thanks Joel for the detailed reply.

They are german cockroaches and the condo is one of 12 units in the building. I will get some to come in and caulk everything.

Is going to the village and reporting it is unlivable a good idea? What kind of costs will there be for the landloard? Can the village force all of the units to get pest treatment?

I have one condo in a building. The building seems to be cockroach infested. I have had pest control in the unit on a regular schedule, but the problem keeps getting worse. Is it wise to call the village so they can force pest control for the entire building?

The savings in filing costs, tax returns, etc do add up quickly as the property count grows.

Right now I have condominiums and am looking to grow, possibly into multi-family. Although, the price per unit is much higher than individual condos.

The idea of having a Series to hold properties and then having a separate LLC for property management does seem reasonable so that one hide the assets from prying eyes. However, can't someone just go to the state and find all the LLCs an individual owns/manages?

Chris Clothier
What is the benefit of keeping mortgaged properties in one LLC and paid off properties in another LLC?

Setting up LLCs is the easy part. Maintaning the separate books is where the challenge comes in.

If a Series cannot be formed, the fees are going to be considerable. Would it be advisable to put all of the rental properties in a single LLC and then get a sizable insurance policy to cover lawsuits, etc? A related question, can a laywer suing you determine the amount of insurance policy on a property/LLC?

I am starting out and considering setting up a Series LLC to minimize risk. However, it will add some additional work for her because each LLC would need to have its own bank account/checkbook, accounting, expense tracking. I think Quicken or a similar tool would be money well spent.

Thank you for the great information Steven. It seems like a series LLC is the way to go. If you do just buy and rent (no fix/flip), I think the following would suffice:
- a LLC cell for each property ( with disregarded status - no separate tax returns)
- a S-Corp cell for property management (files it's own tax return)

Would definitely like to do lunch. I'll keep in touch. Thanks.

I am in a similar situation. I can use cash to buy couple of rental units or use the cash as down payment to buy an apartment building. However, the loan terms on commercial properties are a bit scary. I got the following from a bank:

5.00%, fixed, for first three years, adjusting to the Wall Street Journal (WSJ) Prime Rate + 1.00%, every three(3) years, thereafter. Floor rate of 5.00%. WSJ Prime Rate is currently 3.25%.

This basically becomes an adjustable loan after three years. Plus they want all of your personal assets tied to it.

I am new to this. But it seems much safer to buy and hold couple of properties cash than to leverage for a commercial property and into trouble if interest rates start to move in a few years.

But without leverage, it would be difficult to build a good income stream.