All Forum Posts by: Drew Sygit

@Tony Maldonado boilers are great as they last a long time, but not so great when it comes to servicing & replacing them (expensive!).

What else uses gas in the units? 
- stove, dryers, hotwater heaters,?

@Dhiren Ahir agree with @Stuart Udis

Most SFR investors hear "experts" and other investors telling them they need an LLC - when they really don't. When you do need an LLC is with MF properties or when you have partners.

FNMA, FHLMC, FHA & VA all have due-on-sale clauses that may be triggered by transferring via a Quit Claim Deed (QCD) a property from your name to an LLC. FNMA does have limited allowances if the LLC is whole owned by the borrower. https://servicing-guide.fanniemae.com/svc/d1-4.1-02/allowabl...

There's really only three reasons to put your SFR properties under an LLC:

1) A DSCR lender requires it: just setup the LLC correctly.

2) Anonymity: In Michigan, you can create an LLC with a Registered Agent and use their address to hide your ownership.
- Have seen many investors create their own LLC and use their name & address:(
- Only works if you put a property in LLC when you purchase. Otherwise, if you already bought the property in your name and use QCD to transfer to LLC it's easy to track.

3) Getting properties off your 1040 tax return: once you accumulate enough real estate, for various reasons you may not want the proeprties to appear on your Schedule E. So, you can put them in an LLC that you own 99% of and your wife/partner owns 1% and put all the properties on a 1065 Partnership return.

If you have enough insurance, the proper coverage and avoid "dumb" mistakes that void your coverage, you don't really need an LLC.

@Alexei Semenov what Class is your property?

Also, expect to pay 20%+ management fees to cover all the extra resources required.

Co-living pretty much only works well with Class A properties and high credit score tenants.

Class B can be done, but may take a LOT of time to find compatible tenants.

Class C & D will usually just be addicts and criminals that will takeover & ruin your property.

@Victor Longinotti my vote is you contact @Jaycee Greene and pay him a few dollars.

@Drew Clayton there's a lot of truth to your points!

Yes, PMC's operate on slim margins with minimal staff - why do you think that is?

Where would a PMC get the extra money to hire more staff?

How can a PMC afford to do more than the bare minimum, when owners only want to pay the bare minimum?

The naivete in your post is priceless!

@Nathan Gesner, @James Wise, @James Hamling, @Samuel Eddinger - what do you guys think?

@Peter Dukaj personally think the government should make it more expensive to build than renovate. Raise fees on building permits, give tax credits on renovations.

Suburban sprawl really hasn't been a good thing for the US.

Of course, it's all about supply & demand.

But, if you can figure out why more people want to live in Hazel Park (leading to teardowns & rebuilds) versus south Warren or Eastpointe (nothing happening) then you can make millions.

@Josh Feit Sounds like this is a Class C building in a Class C area.

So, how is your advertising geared towards attracting Class C tenants?

Does your ad have a minimum credit score above 620?

Are you advertising on GoSection8 website?

If you have it on Zillow, suggest advertising it as a SFR, NOT MFR! You'll get more inquiries as an SFR.

Where else are you advertising it?

Have you looked into the local STR and MTR markets?
- Probably easier than Padsplit!

What you've done in the past is no longer working, so what are you going to do differently going forward?

Why can't you fix your credit?

@Mike Teeple yeah, you should schedule a chat with @Matthew Irish-Jones

@Rohmah Ismael when do you want to chat?