All Forum Posts by: Michael Platte

If you're the only member of the LLC, I don't see any point in having an operating agreement unless a lender requires you to have one. This if based off my experience as an attorney licensed in Louisiana.

You can, but there is no guarantee it will completely protect you. I see this often with financed rental properties. People will purchase them through a bank, but they cannot transfer the property to an LLC for fear that the transfer will trigger the acceleration clause in the mortgage. What I suggest is they create a management company LLC, and then have the lease between the management company LLC and the tenant. It provides some protection, but not as much as completely transferring a property into an LLC. So, you could do something similar if you're renting out your house on AirBNB.

Try running it through another insurance company. I'm here in Louisiana, but I had a similar issue with a tree that was near the house I purchased. When we went through inspection, it was noted in the report, and the insurance company was fine with it. After purchasing, the insurance company told me I had to cut it down or they would cancel my policy. So, I just ran it through another insurance company and got a new policy. 

In this market you'll be paying more for the duplex, but I think you have the right idea. It's never too early to start building your portfolio. By living there, you should be able to get a lower rate as your primary residence, and you'll have someone helping you pay the mortgage. I would go for it. One thing you do need to consider is that when you live right next door to your tenant, they can always find you for any reason, lol. So make sure you get a good one. 

With respect to your next purchase, if you can pay down a good bit of principle on this one, it could help with your next purchase, especially if you rent both units and make money after paying mortgage and expenses.

Completely understand. I would just hate for you to get burned on the first couple. You could see if the agent would be willing to reduce their commission a little IF that's an issue for the seller. Really depends. Some FSBO sellers work with buyers agents, some don't.

Whenever I list a multifamily, the buyer does not get to view the inside  of the property until we get under contract, unless there is an empty unit. If there is an empty unit, then I allow access prior to accepting an offer. You are correct, you do not want to bother the tenants, but any buyer is more than likely going to want to view the inside of each unit, which will be done during the inspection period. At that point, at least you'll be under contract and hopefully you will only have to coordinate this one time with the tenants prior to the sale. Good luck

I agree with everyone suggesting you work with an agent (I'm obviously biased as an agent), at least for the first couple transactions since it costs you nothing as a buyer. 

I think it's easier to find a GC than coordinating subs, unless you already have a list of subs you have relationships with. If you are working full time, It sounds like a GC is the best way to go. I would get a quote from a few of them and go with the one you feel most comfortable with. 

With respect to timing, it seems like everything is taking longer these days. Just a heads up.

I would advise getting a lawyer. Was the old lease expired? Did you execute a new lease reflecting the new monthly rent? In Louisiana, you could represent yourself through City Court or a Justice of the Peace, but I'm not sure about TX. I would just call a few lawyers and pick their brains.

 Once you are under contract, then yes, they should absolutely share the lease(s) with you. If they didn't, I would consider that a red flag.

You're welcome!! Let me know if you need anything else.