All Forum Posts by: Michael P.

Originally posted by @Kevin L.:

Using a mortgage to leverage your investment provides a higher ROI. You could then use your cash to purchase other properties. Depending on your RE goals, this could be the better route.

 Kevin, thank you.
In the next 10 - 15 years I am looking to have 20 rental properties.

Do you have any rentals with mortgages at this time?

Originally posted by @Jessica Zolotorofe:

Hi @Michael P. I do agree. Definitely an entity and I would make sure you have a really good operating agreement so you don't end up not-friends with big legal bills later. There is a lot to consider. Happy to discuss everything further if you'd like to send me a message or email.

Best of luck!

 Thanks Jessica, If i move forward I will reach out.

I am currently on the hunt for a rental to purchase.  I have lets say 45 cash. I also have excellent credit, a FTJ, should I go after a mortgage?

I have a property, ok area, zillow assessing at 75k, owner is old, looking to sell at SFH, 45k, with tenant paying 800 a month. If I buy it cash, i am cash flow positive day 1. 4 years its paid off.

So this is now a 2 part question.  How to assess if its a good deal, and should I pay cash, or get a mortgage. 

Thanks.

Amazing response, thank you. The only reason I considering this is for more capital for my first rental. The agreements make sense, but if I purchase solo under my name I can just get umbrella coverage for the property and be secure?

Question is, since we will be utilizing BRRR, it would be ideal for us to purchase in our name I presume. Then if we have 2-3 properties under us, we can form an LLC? Feedback is much appreciated.

Its about if the home deed is under 1 persons name, the other person even though friends for 20 years, should feel 100% in the game, and name on all things.

Looking for advice on a formula to use for tax deeded properties. Acquisition, ARV, cash-out. What formula are you using, or considering using?

Excellent, very informative to those who still need a broad view and understanding on following certain formulas. 

When buying a property no matter which way or how, if you know for example the ARV is 120, what should you buy at to make sure you are able to cash out refi.

Question regarding the effects on cash outs and liability in regards to how the purchase in complete in an inc or your own name. To get a cash out, depending on loan amount and having it in an inc or llc is a bad idea, banks don't want to touch it? The llc is to protect yourself from liabilities. If getting the prop in my name would I just get liability insurance maybe umbrella including the rental property?