All Forum Posts by: Mark Bookhagen

You'll need to quitclaim the properties into the LLC's name. The date that is effective is the date you can use on your 2018 tax return. Don't worry about 2017 though; the LLC isn't going to save a penny you on taxes. You get the same benefits tax-wise when you own in your own name. It is all passive rental income.

Also, the "total cash needed" is not correct. It should be $134,950. This could be skewing your returns.

Welcome @Peter Mitchell! I would start by reading some books. "Rich Dad, Poor Dad" is a good place to begin.

You can do either. If you're trying to keep it simple, I would open it in MA. Otherwise, you're going to have to do reporting to another state and pay their annual fees.

"In one private letter ruling (PLR 8429039), the IRS stated that a minimum holding period of two years would be sufficient. Although a private letter ruling does not establish legal precedent for all investors, there are many advisors who believe two years is a conservative holding period, provided no other significant factors contradict the investment intent." 

Source: https://www.1031ex.com/how-long-to-hold-1031-exchange.php

I've had some lenders require this. Others never once mentioned it or required it (Chase, for example).

Find another agent; it doesn't cost you anything. Do you have a pre-approval? They may not think you are a serious buyer.

3% interest rate is pretty much impossible unless your parents are giving it to you. Typical cap rate also seems pretty low.

Can't you just put you primary SIC on your taxes? Whichever business makes the higher percent of your income. Why do you need to put two?

Leasing fee is low in my opinion. I charge the greater of 1 month's rent or $1,000.