All Forum Posts by: Paul Bojinov

@Rahul Bhatt you don't need to register your LLC in CA if you don't plan to do business in the state. So save your $800 a year.

You will have to register your LLC in the states you are doing business in. However you can form it in any state. Most will recommend NV as the state with most protection. Just keep in mind that if your properties are in OH and a lawsuit is filed against you in that state it will not make much diferance where you formed your LLC. The court will follow OH law.

I assume you are looking into an LLC as a form of asset protection. Just get an umbrella insurance. That will be your best protection and if you really need asset protection there are attorneys that can help you with that. I'm not one, so don't take this as a legal advise.

it sounds complicated, but I'm sure a good CPA will be able to find a way to save you on your tax bill. There is a huge diferance from one CPA to another.  Like some already suggested married filing separately or sell a  property that has appreciated and take the profit tax free. Real estate market will not go up forever. 

Not a bad problem to have. 

Good luck. 

There is a threshold that prevents you from deducting business expenses?

Never heard of this so I would like to learn more about this. 

It really depends what your goal is. For a long term rental I see pools as liability and unnecessary expense.  If you are speculating on short term appreciation (2-5 years), then a pool is definitely worth it.

@James Bynum 

Hi James,

I will advise you not to make deals like this with your tenants ever. It may work this time, but eventually will bite you in the a$$. Try to get out of this situation and hire a professional to get the unit rent ready. 

As for the handyman tenant give him the free rent promised and if he is still not paying rent get read of him. Just pray that he doesn't claim that the work he did is worth $10,000. See where I'm going with this?

Run your rental as a business. The tenants are not your friends. They will take advantage of you if they see you as weak (Mr. Nice Guy). Just stick to what's in your lease. If they are a day late give them notice and file an eviction once the notice is up.

Best of luck.

Many sellers don't like to deal with contractors and repairs. When you find a property you like make an offer based on the condition of the property. I understand that it will be money out of your pocket to do the repairs, but you have a better chance getting the property in as is condition at a discount. 

Good luck. 

@Wesley W. if the tenants did an address change with the post office getting their new address is simple and cheap. 

Send them a letter to the last known address. An empty envelope will do. Under the return address (yours) wright "Do not forward Address service requested". It works best if it's done on a printer and the "Do not forward......." part printed in red. 

Works 90% of the time. If you don't get a response in 10 days try again. 

If the tenant has filed a change of address you'll get the new address  and the cost is under $1. I was charged $.54 last time I used this method. Beats any skip tracer for sure.

Good luck

if you have filed a unlawful detainer I assume you don't have possession of the property.  If that is the case just treat this case as the tenant still lives there ( they have possession ). 

Hire a registered process server. Tell them to do 3 attempts on 3'diferant days and at diferant times. After the 3rd attempt they will give you an affidavit showing the attempt they made to serve your tenant. Now you can petition the court for permition to serve the UD by posting. 

Make sure you hire someone that has done it before. In your case doing it right is more important to hire the right not the cheapest sever. Cost will be $80-120.

Good luck. 

 People are trying to help. No one claimed to be a "pro" except you. Now what will the OP do with your advice or there is part two coming?

@Ken Van Haitsma Jr File a fictitious business name with the county and pay the fee. They will give you some documentation that you have file. Take that to the bank and open your business account. They will use your SS# you don't need a EIN.

This is the process where I'm at. It should be similar in most states.