All Forum Posts by: Michael M.

Was speaking to an investor who lives and invests in NJ about setting up an LLC for a rental property, and he suggested that I skip that route and go with an umbrella policy for all of my properties. Any thoughts on this route?

Found a good 2 family where the numbers work nicely.  Classic flip job with laminate floors, new coat of grey paint, etc.  Only thing that is weird is that there is a hallway that measures only 30 inches across.  It is a short hallway (about 6 feet long) that provides access to the living room and 2 bedrooms.  It felt a little narrow so I took out the tape.  Everything else in the house seems perfect.  Is this something that I should worry about, or is it not a big deal?  Doesn't look like there is any space to widen the hallway easily.  The house is over 100 years old, but this looks like a recent renovation...

I house hacked in the Bronx for 5 years. Lived in the finished walkout basement of a 2 family, which allowed me to live for free and save a huge chunk of money. The house almost doubled in value with the market, and I was able to pull out a huge chunk of cash to put towards my next investment (and move out of the basement). It is possible to live for free and make money if you get creative and don't mind sacrificing your own living arrangement for a couple of years. It is also possible to live for free but not make much cash on a 2 family in the Bronx, or get a 2 family with tons of rooms and get some roommates to offset costs. The Bronx has been good to me, and it is often overlooked in this crazy market. A large 2 family with a basement in a decent neighborhood can still be found for 550K. An FHA mortgage will call for a very low down payment (plus PMI).

@Bin Chen Did you set up a separate EIN for your LLC or did you just use your social security # as sole proprietor? Did you use your own address, or did you use a different address? Finally, did you publish on your own, or did you use a service?

Thanks again for all the help.

Thanks @Bin Chen! I also have read in various places that the crazy NY publishing requirements for LLC formation can be ignored or postponed to speed up LLC transfer, and then applied retroactively by publishing at any time in the future if necessary. Does this sound accurate also?

I recently purchased a rental property and formed an LLC, to which I plan to transfer ownership of the home. Lawyer says this is standard operating procedure, and should be done. However, lawyer also said that technically, this is not allowed, because banks do not allow mortgages to be held in the names of LLCs.

However, lawyer also says that everyone does it, and it is important from a legal standpoint for liability, and as long as payments continue to be sent to the bank, everything is fine and the LLC provides protection to the owner.

Does this information sound accurate?  I know that most landlords that I have paid rent to in my life have been LLCs, and I can't imagine they all owned the properties with no mortgage.

Thanks!

Thanks @Bin Chen.  That's it!

There is an online public-access interactive map that both an architect and someone at DOB showed me and I can't for the life of me remember how to access it. It has all of the info from DOB + other agencies on a clickable map... basically you hover over a building and it gives you a detailed profile.  Does anyone here know what I am talking about/ can anyone provide a link?

Thanks!

Looking for an architect in the Bronx to help create legal retail space in cellar of B2 2 family dwelling with no C of O (built 1905).  Zoned in C2 commercial overlay, DOB thinks it can be done.

Does anyone here have a recommendation for a good/fair/affordable architect for this type of work?

Thanks!

Thanks @Louis Maldarelli

The building was built before C of Os existed (1905) so there is no C of O on record.  For tax purposes, the building is B-2 2 family dwelling.  

The space in question is a cellar, although ceilings are 8 feet, 2 means of egress, and completely above ground on 3 sides with large windows (below grade at curb, so still considered a cellar).  I spoke with the DOB, and though the space is "uninhabitable" due to its status as a cellar, the DOB believes that a commercial space could work due to the overlay and the fact that the area would not be lived in, but I may need to modify to accommodate ADA rules.  This is the only "house" on the street; all other buildings are large apartment buildings with ground floor businesses. 

At this point, the DOB suggested that I confer with an architect or engineer to determine next steps in making the space legal for retail.

Does anyone have experience with this type of situation?

Thanks