All Forum Posts by: Account Closed

Wow - $486 in property taxes annually? Is that really how low taxes are in KC? That's like 0.5%. If so sounds great. 5-6 times that in Houston.

Hi all,

For those that get some of their properties on the MLS, I was wondering what your conversion rates were as far as # properties you see physically, # properties you put verbal or written offers on, and ultimately # that you end up acquiring.

The limiting factor I've run into is the time commitment for my agent (not my own time but my agent's) to play the numbers game.

I'm curious how others work around this and what strategies they use to make a short list to make the conversion rate a little better.

Thanks for all the great responses everyone!

Thanks for responding Sam.  Then at what points in the purchase process, if any, would you fly in to see it? 

I have a logistical question about investing in buy-and-hold out of state - When is/are the right time(s) to fly out to see a specific property I'm going to buy?

My thoughts are that I would have my family / trusted friends see prospective properties for me.  If one makes sense on paper and my family / friends on the ground have a good feel, then this is where I'm not sure what makes sense.

Would you fly out to see the property before putting an offer in, or would you wait until inspection, or both?  My concern with flying out before putting an offer in is that I feel like spending ~$400 on a flight would be quite a bit of money first of all, and second of all mentally commit me to buying the property. That's why I was thinking I'd just make sure my contact on the ground does a really thorough walk through of the property with a list of things I want them to look for.

How do other out of state investors handle this?

This state sucks.  Weather sure is nice though.

Hi all, Firstly, I would like to ask if anyone has a good real estate attorney reference in California? Second, can someone help me understand costs around forming an LLC out of state while I live in California. I know I should discuss this with an attorney (hence the first question) but I would like to screen it here. Basically, I live in CA but would like to invest out of state (Ohio specifically). I am researching starting an LlC in Ohio where my rental properties will be, buy I had read a prior post that seemed to imply that in this situation, because I live in CA I would still owe the CA $800 LLC tax plus the income tax if the net income is over $250k. Is anyone familiar with this? I was hoping that by operating in Ohio, I could form my LLC in OH and not have to deal with the high CA tax implications.

Thanks for all the replies.  Didn't expect to start such heated debate.

What about the lending aspect of my question though? This is one of the main issues I am struggling with and why I was pretty set on going with a good insurance policy and umbrella policy for asset protection. My understanding is that you can't get conventional lending using an LLC, and you can try transferring title but then risk the bank calling the loan on the due-on-sale clause. Is the only way around this to go all-cash or higher rate private money?

Is an LLC a practical requirement to investing in buy-and-hold with a partner? If so, is there any way to get around the financing issue with buying under an LLC without having to risk the due-on-sale clause?

In my research, I've basically concluded that for a few SFHs, an LLC isn't practical/worth it from an asset protection standpoint if I want to finance, but what if I want to partner with someone? How do I do that and finance as well?

Originally posted by @Arlan Potter:

@Mengdi 

@Account Closed the depreciation is a non-cash item.  It appears your cash flow should be $4,267 more

Just to clarify, I don't think I'm calculating cash flow using the depreciation number.  I was just factoring it into my tax deductions.  Maybe I'm missing something?