All Forum Posts by: Kurtis Schreck

The thought was to hold in a business for the depreciation, expenses deductions, etc. but correct with me staying here that is definitely wrong. Eventually, this will be an investment property and not my residence - the COVID issue has unfortunately changed that timeline was the issue.

What cons would there be to an LLC if I was not living in the home and it was properly rented out to a tenant?

Hey guys - in a unique situation here

I bought a 2 bed - 1 bath house in KC, MO on an FHA 1.5 years ago, renovated, rented out for a year (got sent away for work after a few months), and just came back to add on to make it a 3 bed - 2 bath to finish the renovation before refinancing.

The issue is that I just had to move back to the KC area temporarily (due to COVID - less than 6 months) and would like to stay in the home before moving back out to travel for work (renter just moved out). If I refinance the home into an LLC, does the business still run the same as if someone else were in it? I would still "pay rent" to the business, and use that to pay the mortgage. This is seems a little sketchy though - can anyone inform me on the tax codes / laws involved or that I need to be aware of? I feel like I shouldn't be able to just buy/refi my own home in a business and run it as such - otherwise wouldn't everyone do that to take advantage of the tax benefits (depreciation, etc.)?

Preciate your help!

 Chad - were you targeting a specific area in KC at the time? I moved away 2 years ago and am moving back next week. Excited to see the changes.

 Colt - curious as to what your experience with split level has been and what issues you've seen specific to it. I few areas I'm evaluating have tons of these.

Thanks

Specifically taking out this section - do you think we're potentially setting a precedent for any recession moving forward? Did the government just give the message that the people will always be bailed out in circumstances like these(by eliminating evictions)? This is a super special case that no one could have predicted, but it seems like the scale of holding people accountable for their own finances and savings is tilting in one direction.

Thanks for your replies! After doing more digging - I was definitely underestimating a few potential expenses I've seen. 

Preciate you guys' time!

Thanks Jeff!

Cincinnati Area Investors - 

Just moved to the Cincinnati area in January - Been driving for dollars, networking at REI events, and watching the MLS to get my first deal in this area, but thought I'd get active on BiggerPockets as well.

A majority of multifamily properties I've looked at have been a decent or good deal. It's concerning. Am I looking at vacancy or costs wrong? Would appreciate any input!

Assumptions in general (case by case, but this is typical)

- Rent $ amounts collected from Rentometer - amount based on interior finishes, potential amenities

- Vacancy at 5-8%, repairs 5%, 10% cap ex, 10% property management  - are these usually higher in C class areas?

- Utilities seem to be split in one way or another from landlord to tenant (somtimes water, sometimes heat, just depends) 

- $50 for lawn service per month, $20 for garbage

- low future assumptions (1% growth for all, 6% at sale)

- Lastly, 4.5% interest on a 20% down payment

- $3000 in closing costs, anywhere from 5000-20000 in initial repairs/upgrades (varies property to property)

Am I crazy? Let me know.

Thank Ya!

Kurtis