All Forum Posts by: Leon Li

like you said in order to put that property in LLC u must open a LLC in Alabama and also have the attorney be registered agent. Then all the other questions you should be asking the attorney.

Morris invest sounds like a turn key provider, is the PM company Morris invest or is it with a 3rd party? I personally have no experience with Morris but most turn key company should be responsible until the property is closed and rented out. Best bet is to reach out the Morris Invest and get a different PM. Otherwise sounds like you should get out of the deal with Morris, have you done research on Morris, theres alot of bad turnkey companies out there.

Has anyone tried Unison, I did my research on them and seem like a really good idea. They give 20% equity back in exchange for future appreciation, no payments for 30 years. I was offered 80k cash for 40% future appreciate or 40k for 20%. Its big gamble but I have the option to pay it off anytime after 3 years. They would have 3rd lien position after heloc. Probably not the best idea for property near seattle.

I agree with all the replies, the tenant most likely caused or made the problem worse. I believe you made the right choice by giving them back atleast something so they wouldn't feel too bad. when it comes to newly mothers having premature labor, they can tie it to the chemicals from the pest control, unless you are using eco friendly 100% natural product, either way it can fall back on you. You did the right thing.

mysmartmove for vetting the tenant, to list the property Zillow and cozy is all you need. Zillow is the best by far, it automatically lists your property onto many other websites.

@Nathan Guyette

Originally posted by @Nathan Guyette:

@Leon Li, what do you mean practically tax free?

@Nathan Guyette

The beauty of real estate is that you can depreciate the property minus the land over 27.5 years, depending on how much you are collecting in rent, you will likely pay little to no taxes after deducting real estate taxes, mortgage interest, deprecation and any repair and expenses. That's why real estate is the best investment you will ever make. Tax advantages, appreciation, rental income, on top of that the tenant is paying for everything. 

Here is how depreciation is calculated:

If the land value is $75,000, and the building value is $125,000. Your depreciation expense that you take each year against rental income would be $125,000 divided by 27.5 years of useful life for a depreciation expense of $4,545 each year.

Hope that helps.

Dont rent out to students if you dont have to, just a warning, they party all the time and smoke/vape. If you must, interview them carefully.

Trash the stocks, rental property all the way. It's practically tax free rental income, with depreciation. There is no comparison.

I would definitely rent it out, as for the ac I would get a home warranty like fidelity home warranty, when it dies you get a free ac. Just my 2 cent.