All Forum Posts by: Adrian Pinson
Adrian Pinson has started 1 posts and replied 6 times.
Post: Palm Springs STR approved fix-flip-hold opportunity
- Irvine, CA
- Posts 7
- Votes 6
Post: Looking For Wholesales/Off-Market Deals In Palm Springs
- Irvine, CA
- Posts 7
- Votes 6
Hey Jason,
I have an off-market fix & flip/hold property in Palm Springs that is ready to go with approved permits. This property is located in Little Tuscany which still allows STRs. 5-Bedrooms, 4- Bathrooms with a newly built 18'x38' custom pool and spa. Are you interested?
Post: Final Steps before commiting to my first out of state rental.
- Irvine, CA
- Posts 7
- Votes 6
Quote from @Miguelli Fernandez:
Been doing a lot of research and prep work and feeling ready to start putting offers. Few questions still.
1. If I use a HELOC or HELOAN from my primary residence to buy a rental, will the mortgage interest be able to offset the rental's income? (I have read it can't be which is why I'm at this point considering just going with a 30 year conventional loan and putting the 15% or 25% for SFH or MFH.
2. I'm based in California but plan to buy rentals in Cleveland Ohio. Where should I form my LLC? California or Ohio? Getting conflicting info.
1. HELOC/HELOAN Interest Deduction
- You might be able to deduct HELOC/HELOAN interest against rental income if you can trace the loan to the rental purchase. However, this is tricky.
- A conventional loan tied directly to the rental will make the mortgage interest easier to deduct.
2. Where to Form Your LLC
- Ohio LLC - since your rentals are there. It’s cheaper, and you avoid California’s $800 annual franchise tax.
- If you form in California, you’ll pay fees in both states (California and Ohio).
But I would setup an LLC in WY and appoint your Ohio LLC as the manager of the WY LLC and put it all in a land trust. You want to maintain anonymity and protect yourself from liabilities at all times! Real Estate is a very litigious industry especially when dealling with tenants.
Post: Finding a rental that would become a home one day
- Irvine, CA
- Posts 7
- Votes 6
Quote from @Windu C.:
Hello, we're in the Bay Area (which is too expensive for us to buy a home). We'd like to buy in Southern California to be near family one day. We have family in Yorba Linda and South Pasadena. South Pasadena is very expensive so Yorba Linda/Placentia makes more sense. My questions are: 1) What is the rental market (pricing)like for single family homes (3 bedrooms/2 baths) in the Yorba Linda/Placentia Area? 2) Is it hard to find tenants? 3) Are there good property managers you'd recommend? Thank you!
Post: Advice on creating an LLC before first property.
- Irvine, CA
- Posts 7
- Votes 6
Quick answer:
1. Set up a WY Holding LLC 123 Holdings LLC
2. Set up another WY LLC under the name of your property street eg., "Main Street Investments, LLC."
3. Set up a Land trust and take title in name. "The 123 Main St Trust"
4.Set up a C-Corp in the state where your property is to avoid being taxed as a dealer and maintain coverage under that state's laws.
Depending whether your property is a flip or a rental would determine how you structure your entities.
This structure would benefit you both tax and liability wise.
Post: One-time close construction loan with VA
- Irvine, CA
- Posts 7
- Votes 6
Quote from @Shawn W.:
Quote from @Scott Schnabel:
VA Construction loans are tough. Typically the buyer makes and interest only payment on the loan during construction. VA doesn't allow this so the moneys to be paid are added to the project. Sometimes this creates appraisal problems.
I'm also looking in to VA construction loan as well, potentially for a BRRRR property. Could you please expand on why it creates appraisal problems? Thank you! @Scott Schnabel
@Edet Umoren Curious if you ended up getting the VA One time close construction loan?
To avoid appraisal issues with VA construction loans, work with a VA-approved builder, keep plans detailed, and stay in touch with your lender and appraiser. Make sure everyone's on the same page if any changes or delays happen. Do you have a lender you're working with?