All Forum Posts by: Martin Silverstrim

Looking to purchase my first turnkey property in early 2020. I'm leaning toward just buying it in my name with additional umbrella insurance. We have about 100k in equity on our primary residence (400k property value) and about 600k in retirement funds. Hoping to have a good experience and move to property 2 within the year. Is there any issue with owning a property in my name and then doing LLC for property 2, 3, 4,... Would this start a tax issue or anything? I heard it's a nightmare to switch over later, but I'm ok w risk of one property in my name. My goal is to purchase a property at least every 18 months until I get to 10. I have a FT government job and also am in the national guard, so I don't foresee moving to anything else unless things really take off. I have about 2 yrs until I'd qualify for my Guard pension and will also get some govt pension (at 62) should I decide to go elsewhere. Overall, I'm sticking with turnkeys for diversification, equity buildup, and some cash flow with the goal of utilizing some of this to assist with funding my kids (4 and 1 yr old) college down the road. I don't have time to vet deals, contractors, or manage tenants, so I'm ok with the reputable turnkey provider I've found understanding I'm giving up a bit of cash flow for management and a more handoff approach. I'd appreciate any input. Has anyone else done a private purchase and kept it that way and then opened LLC (s) for additional properties?

@Basit Siddiqi Thanks. I'm not opposed to doing things remotely. Is it worth considering recommendations through whatever property management company I use, or, if I do end up going the turnkey route, see who they recommend. Overall, I think I need someone who knows his/her way around real estate tax law with an eye on what the growing newbie needs in order to not get slammed on taxes initially.

@Steve Vaughan. Thanks for all your info. You mentioned a few good considerations like the kids' Roth. Mine are a year and 3 1/2 yrs old, so I have a few years until they can 'work,' but not a bad option. Responsibility and value rolled into one:) I do like Roths. I have my wife doing all Roth (403b and Roth IRA) since she's much younger than me. Hopefully, we won't have to touch her accounts until I'm well past 70.

@Audrey Xi. Thanks. I dont' think I need an LLC right now. If things take off, I'll consider it. Part of my issue issue is that I'm looking to OOS due to the high cost of entry into the VT market. We're actively saving for retirement (~20% right now) and putting 5-7K into 529's each year. I do have pensions through my Guard and FT job even if I walk away now (just can't draw on them until 60 or 62). We shouldn't be in a bad position when the time comes based on our current strategy. That said, I'd like to establish the rental property plan. The first property doesn't HAVE to be for funding college, but it seems like a good diversification. I'm reaching out now to get in touch with a real estate CPA...don't want any big surprises on taxes when I purchase my first property.

Hi. I'm a newbie that needs a CPA in Vermont, preferably one that has some insight and expertise into Real estate. Most likely, I will be purchasing investment properties out of state. My taxes have always been pretty simple to this point, but I need some professional advice as I start purchasing properties while keeping an eye on tax implications for my family of four (two kids under 4). I've always used turbo tax or H and R Block to this point and never had a tax advisor before. All set on the 401k and stock side of financial planning. Or, if anyone has any CPAs that are simply top notch that do remote work, that may be helpful as well. Thanks for your input:)

@Eamonn McElroy youre right. Hopefully we wont have to worry about financial aid. If they don't get aid and its just annoying they didnt get any but I can swing it, I'll be ok w that. Kids will contribute some to their own Educations.

I'm hoping that sticker price will remain true...its not what you actually pay. Between GI bill from me, scholarships, grants, 529s, kids loans, and some real estate assets, I think we'll be ok.

@Caleb Heimsoth thanks. We're continuing to fund the 529 plans for both kids. I'm just thinking worst case scenario= 2 kids@100k per year for college x 4 yrs. We're prob better off than I think though...i have almost 2yrs of my GI bill that I didnt use, so its more like 6 yrs to fund. Id like to have something I can use as an additional funding source either through rental income or possible future sale if needed.

@Scott P. Thanks for the response. I'm just trying to strategize a little early in in the process. My kids will be entering college as I am eligible to start collecting my national guard retirement. I'll probably keep working on some level then, but I hope to be financially free by then. When it comes down to it, I think I do just need to start talking to CPA s and financial planners. My taxes have always been suoer simple up until now. I'm good on the 401k front, but feel like I should be diversifying more w real estate and take the chance that I might actually be able to develop enough passove income that I can walk away from my w-2 job by the time I'm 50 or so.

I'd like to pose a question to the group that's been on my mind. I'm probably getting ahead of myself. Part of my plan is to do something like Brandon did and purchase a rental property that will help fund my kids' college starting 15 years from now. I dont plan on it being my only property. I have no problem purchasing as a family w my wife, but wondering whether I should consider putting it under an LLC for tax purposes. I dont plan on selling anything I buy unless I have to, but I worry about owning it as an individual and being seen as MY asset rather than being sheltered through an LLC. My real goal is to have a few properties or units (between 10 and 20) by the time my kids are 18 (and I'll be 60!) to supplement my pensions and 403b. I just dont want my kids to get no financial aid bc mom and dad own numerous properties; we have 529s for both kids already, but I'm divesting my taxable investment accounts to fund my first deal when that comes along. I know we need to consult an accountant/CPA, but I was hoping to get an idea through BP prior to moving forward. Either way, I plan to move forward in the next 90 days, but dont want any surprises down the road.

I apologize for missing tonight. One of our cars was in the shop and had to pick up my kids from daycare. Hope to be a part of some upcoming events.