All Forum Posts by: Randy Gutierrez

Right away, it's the proper way to run your business if you are doing it for the long haul. The costs associated with LLC's are marginal in retrospect. On the front end you get protection and anonymity and on the back end you get tax advantages and leverage in lending that you wouldn't have otherwise. My EA/CPA was able to work magic with my LLC when tax time came around.

I allow pets in my rentals, just not the ones insurance won't cover. I'd charge a one time pet fee and a monthly pet rent. I think due to their size and strength pitbulls and rottweilers are commonly chosen to be "attack dogs". As a result this skews the statistics unfairly towards these breeds that insurance companies rely on. Ultimately it just comes down to the owners and how they raised them.

My only regret is not starting sooner. If I had started at your age I would probably be on an island for half of the year these days. Definitely grind it out in your 20's. By the time you are 30 you will be pleasantly surprised, as long as you are consistent you will find your own island.

 If real estate investing is your passion you can potentially go to school for a degree in real estate such as real estate development and work at the same time. You will just have to manage your time effectively. While not everything you learn in school is applicable, you do learn a lot such as communicating, networking, critical thinking etc. Being educated pays you dividends down the line.

Education is one thing but action will separate you from the rest of the pack. Everyone knows real estate can make you rich, but how many people actually do it? You will need to get out of your comfort zone, go to REI meetups and connect with an investor friendly agent. The rest will be history. Good luck!

@David Ribardo is good!

I wouldn't say it is immoral to own STR's. I think it's a case by case basis on determining if there is a net positive to having them within a community. That decision should probably be left up to the city/town. As an investor, if my intent was to buy a STR property I would also make sure that property would be viable as a LTR as well.

Usually FB marketplace, I found out there is a whole ecosystem of second hand appliances out there. I purchased 1 gas stove, 1 electric stove and 1 fridge for $750. Some sellers even offer 4-8 months warranty on their stuff.

I have a similar BAC (Buyers Agent Contract) with my agent. Properties priced below 100k are $3,000 as commission. If it's more than 100k than the commission is 3%. Most of the time though only 2.5% is covered from the seller so I would have to pay the .5% difference. Not all agents are built the same, so I would only pay that if I didn't think he was worth it. 

I typically allow pets for this reason, a tenant can easily bring one in the future without your knowledge. So might as well allow it and charge accordingly, you end up making more money in the process. It also increases your tenant pool when screening. As previously mentioned try doing a lease addendum, just pull out the "insurance/increased liability of the building card" to convince them.

I think his mortgage payment is also something to consider. Quite possible it is super low if he has a tenant in there that long assuming he hasn't refinanced.

The 18102 zip code which is what the property managers are alluding to is all pretty much the same especially if you are looking from the outside in as @Justin Brown stated. I would say that statement is fairly accurate. Some blocks are marginally nicer than others but as long as the numbers make sense and you screen your tenants thoroughly you will be fine.