All Forum Posts by: Navid A.

@Dennis M. 
I'm in the military and deploy fairly frequently so she is the continuity while I'm away. At the moment, this property is not under any LLC structure.

Good morning BP, 

Just closed on a property and putting together a leasing agreement for an existing tenant that has been month to month until now. The property is under my name only, but my wife will be managing it. Can I legally list her as a landlord on the lease as well or no? Thanks in advance!

@Dennis M. $850 currently. Previous owner didn't raise the rent in 3 years and made no updates to the property.

@Laura Williams thanks for sharing your method on raising rents, I actually like that scale a lot. I'm going to follow everyone's advice and keep the existing rate for this tenant. He's been living there for 6 years apparently.

@Coty Cray, I agree with you regarding a good tenant. My only setback with this situation is that the current rent is slightly below market value as well. At the moment, the average rent in that area is around $900/mo.

Originally posted by @Justin Gutierrez:

What repairs are you planning to do? ARV means after repair value, right?

The only repairs the property needs is fresh paint, new flooring, and new countertops to get it appraised around $110k. Buying it at $66k is what I would consider a decent discount at 60% of the ARV (after repair value) based on several comps in the neighborhood. But for now, I'm considering just replacing the flooring and painting the house. Should I raise rent by $25-50 or keep the course until next year on this tenant? Average rent around here is around $870-900

Hey BP, about to close on an awesome deal (or at least I think so), would love to hear your feedback! Found a single family home (for sale by owner) which has a long term tenant staying on property upon closing. Here are the details:

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Purchase price: $66k ARV: $110k Mortgage: $487 (5.25%, 20% down, 30 years) Gross monthly rent: $850 Net cash flow: $363/month

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The tenant wants to stay for "as long I'll let him stay". The home could use a refresh like new flooring and paint, but is structurally sound and has a new roof and HVAC system. However, if I do the requested refresh, I feel like I should raise the rent by at least $25-50. Any thoughts on this? I typically hate to raise rent upon acquisition on existing tenants.

Thank you all for taking the time to reply and offering your advice, much appreciated. Since the property is currently under my personal name, the LLC wouldn't be able to "manage" the property since the LLC doesn't own the property. In NC, you can only self manage your own properties without a broker's license. Sounds like it's best to keep things as they are for now until I acquire more properties, when liability becomes more of an issue.

Good evening BP! Does one need a LLC or any other business entity in order to claim rental property related deductions on taxes? I recently acquired an occupied rental property in NC under my own name and am curious if I need to start thinking about setting up a LLC or not. If so, how can I utilize a LLC to claim deductions on my taxes? In NC, you need a brokers license to obtain a property management license which I do not have, therefore the LLC cannot be a property management company. What else can it be or do I just not need a LLC? I’m planning on buying 4-5 more properties in 2019 and am trying to setup the proper infrastructure now. Any guidance would be greatly appreciated!

@Anthony Dooley, this caught me by surprise. Everything I have read and listened to thus far is contrary to your statement. Can you explain this in more detail? I was always told that an umbrella policy wasn't enough for asset protection and that an LLC was the way to go. Just have to make sure to avoid owning anything under your own name. 1 LLC for flips, 1 for buy and hold, and 1 for operations.