All Forum Posts by: Lateefah Mathews

@Rogelio Adame Welcome to the BP family! Although Indiana isn’t my stomping ground, it looks like you have a solid plan in place. With your strategy and niche dialed in, you should hit the ground running in no time. Much success to you on your journey!

Congrats Kedric! That’s a huge milestone, and it’s just the beginning. Wishing you continued success as you build on this momentum!

Hey @Ashley Chris! It depends on what you're trying to accomplish. If your goal is asset protection and limiting liability then just putting the LLC in your wife's name may not necessarily shield you, especially if you're still actively involved in managing the property. Courts will look past LLC ownership if they determine it's just a workaround for personal liability (ie. "piercing the corporate veil").

Instead, you might want to speak with a real estate attorney or entity structuring specialist who can help you set it up correctly. Someone like that can help set your entity up to provide the protection you're looking for.

Another thing to think about is that managing your own properties under an LLC may require you to follow property management laws in Arizona. Something to double-check before moving forward.

Quote from @Amy Lemaistre:

Just to clarify, when you say use 0% interest business credit cards to fund flips, are you referring to the renovation cost or the actual purchase?

Hey, so that answer is actually yes and no. You can't use this method to buy the property outright, but you can extrapolate these funds to cover your cash to close... so technically it's not just limited to paying contractors. There's a way to strategically free up reserves by structuring it correctly.That said, I wouldn't advise using this for a buy-hold strategy at all. It's much better suited for BRRRR or fix & flip deals where you need liquidity to move fast. The key is making sure you're maximizing flexibility without overleveraging.

@Andrea Andrade Hey, welcome to Bigger Pockets! I’d like to echo what @John O'Leary said...yes, an LLC can provide tax benefits and keep things separate from your personal assets, but so many investors here on BP don't use one and will even advise against it. It really comes down to how you view risk and asset protection. If privacy and limiting liability are priorities for you, an LLC makes sense. But if you're just starting out, weigh the costs and benefits because some lenders won't finance in an LLC without a personal guarantee anyway. I'm not a CPA or attorney, just my two cents!

Hey @Kerri Asekeme What type of project are you looking at...SFR, MFR, or new construction? Also, do you currently own the property? Once I have that info, I'll send over some referrals to help with your upcoming projects.

Quote from @Sam Abe:

The sellers agent is staying We are not able to disclose anything that occurred to the home before our ownership. But they have it included in the listing as an additional bathroom. 

They have a bathroom included but it was not disclosed that we should check on the status or anything like that. we assumed everything was permitted. 

This is in Atlanta, GA 

Hey Sam! I'm not sure if you're looking to purchase or if you already have this under contract, but I agree with the other advice here. The sellers bought the property with the unpermitted bathroom and clearly didn't check its status. During your due diligence, you have the right to inspect and can contact the city to pull the records for the property. You can also ask if the sellers had an electrician and plumber check the bathroom and provide a certificate of good standing. If they haven't done this, you may want to consider walking away, as the sellers aren't obligated to disclose or permit work done before their ownership.

Quote from @Sheldon Huff:

Hey BiggerPockets crew! I'm an active-duty pilot who bought my first deal a year ago (long-term rental) and now found a potential short-term rental in Pensacola's historic district. It's a $385,000 condo, 2-bed, 2.5-bath, 1,288 sq ft, using a VA loan (0% down). I've been digging into AirDNA and Airbnb listings nearby, and here's what I'm seeing:

• Slow Season (Nov-Feb): 45-55% occupancy (14-17 nights) at $225-$250/night = $3,150-$4,250 gross, ~$4,000 expenses (mortgage $2,485, taxes, cleaning, etc.). Net: -$889 to $250/month. Listings show 60%+ open days now (March-May), so I’m worried about vacancies.
• Busy Season (June-Aug): 75-85% occupancy (23-26 nights) at $275-$300/night = $6,325-$7,800 gross. Net: $1,819 to $3,100/month.
• Average: 60% (18 nights), $250/night = $286/month net, scaling to $1,500+ with upgrades ($275-$300, 70-75%).
  I've got $15k-$25k to invest (upgrades, buffer), but my reserves are tied up in crypto/stocks, which are down. I'm new to STRs and hesitant—scared it won't rent enough or managing it will be a nightmare after I PCS out of state in a year. I would live in it for the next year while renovating it to be ready for STR once I leave the area. Love the podcasts and have been listening for years, but am I over my head? Is this a great deal?
  Looking for military/STR pros to help me run the numbers or point me to a service for beginners to underwrite this. Is this worth the work, or should I pass? Thanks for any wisdom!

Hey Sheldon! Pensacola is a great STR market, but condos can be an issue due to potential rental restrictions, condo covenants, and constantly changing rules, which could hurt your flexibility. Although the numbers look decent, I'd check with the HOA about short-term rental policies and consider possible volatility.

If you’re comfortable with the potential ups and downs of a condo and managing from out of state, it could still work, but keep those risks in mind. Honestly, I would suggest looking at non-condo options for more long-term freedom!

Quote from @Anne Musa:

Quote from @Lateefah Mathews:

Hey @Anne Musa welcome to BP! Right now, the focus should be on defining your strategy and goals. Do you want to build long-term wealth through cash flow, or are you looking for something like a fix-and-flip? Once you figure that out, the property type (duplex, 4plex, etc.) will align with your plan.

Also, how much you can put down for a down payment is important. Your down payment will help determine the size of the property you can afford and the financing options available to you. Feel free to share more details so we can further assist!

Thanks for your response, @Lateefah Mathews. I am not interested in fix-and-flip right now. I am looking to build long-term wealth through cash flow. I am looking for property in the range of 250-300K. For financing, I am looking into conventional loans. I was just wondering what would be better between a newer duplex with less cash flow and an older 4plex with more cash flow. 

Anne Musa

Hey Anne!  An older 4plex with more cash flow is likely the better choice. Even though it may require some maintenance, the higher cash flow will help you build long-term wealth faster. Newer properties tend to have less upkeep but usually offer lower returns in terms of cash flow.

Hey @Anne Musa welcome to BP! Right now, the focus should be on defining your strategy and goals. Do you want to build long-term wealth through cash flow, or are you looking for something like a fix-and-flip? Once you figure that out, the property type (duplex, 4plex, etc.) will align with your plan.

Also, how much you can put down for a down payment is important. Your down payment will help determine the size of the property you can afford and the financing options available to you. Feel free to share more details so we can further assist!