All Forum Posts by: Matthew McNeil

Portland is weird. Used to be a nice place to live, but just look at how often it was in the news last year. The liberals ruined it as they do with everything they touch. Vancouver. I don't think I've ever been to a city (my in-laws live there) that completely lacks any character. Boring!
Look at Boise. Or, if they can handle the winters then consider Coeur d'Alene.

I did my own taxes for a few years, but it seemed I was getting in over my head so I hire a professional. I asked her to review my previous years returns. Sure enough, she found things I'd completely missed because I just didn't understand; even though I'd been using Turbo Tax. I'm glad I hired a professional. 

 I was just getting ready to offer the same feedback that you provided in response to Richard.  An additional word of caution is that its harder to get rid of a bad tenant if you need to if you've got them locked in for 4 years.  "Due Diligence" isn't limited to checking their credit score or work history. I NEVER sign rental contracts more than one year in consideration of the need to let them go at the end of the 12-month contract if necessary. Case in point; had a tenant that we did due diligence on.  No problems. When we did a walk-through at the end of the first year we found a murder scene in the back bedroom. OK. Joking. But the room was in such terrible shape with horrid stains on the carpet that we were tempted to call in a hazmat team. Glad we go them out. I had a new tenant within two weeks after we replaced the carpet.

You've not provided enough information. Did you buy the assets in the name of the LLC? If not, and you transferred via a Quitclaim then it's important to understand that doing so does not transfer the mortgage. It remains in your name. So, you'd have to QC the assets back into your name in order to refinance. But that's only one scenario. What I'd recommend is to ask the Title company that did your last closing because they finalized your deed and title transfer. They can advise what you need to do.

For years I chose not to raise rent if the tenant was a model tenant. Then I looked at rent comps and realized I was so far under a reasonable fair rental amount, and how much I'd lost.  No wonder the tenant stayed so long!  I now raise rent $25 annually. 

I use LLCs for my RE assets. However, using an LLC for the particular situation you've proposed is unnecessary. An LLC is designed for asset protection, but you plan to live in one side. Therefore, it would be easy for an attorney to prove that you're "personally" connected to the asset- thus piercing the veil. Furthermore, for an LLC to be truly separate you need to QC the asset to the LLC. You didn't mention if you plan to purchase the duplex in the name of the LLC or transfer it afterward. Several rabbit trails we could walk down with your proposed question such as what is your LTV, which partly influences the need whether to even have an LLC. If its low then there's not enough meat on the bone for a lawsuit. Ultimately it doesn't make sense to put this into an LLC. A $1M umbrella insurance coverage would suffice. You can always consult an attorney.

I learned a log time ago to never be influenced by the "crazy crowd."
Set aside the craziness and stay the course for the strategy you've laid out in order to accomplish your long term goals.

People preach what they know. If they invest out of state, they talk about how great it is. If they invest locally, then that's the only way
to go. The real answer is that it's completely subjective to you and what you want to do.

True. True. True.  I will propose that Idaho is the best place to invest. Only because that's where my portfolio is and its what I know. Try to convince me that Kansas City is the best. I don't KC so you're going to have a problem convincing me because its unfamiliar to what I know.

You realize the IRS considers you disregarded entity if your LLC is a single-member? @Basit Siddiqi would know more, but I don't believe you even file a tax return for the LLC, because a single member LLC reports all income and expenses on your personal 1040. 

The guy you want to connect with is @David Clinton III