All Forum Posts by: Rohan J.

This will be my first time finding a Section 8 tenant for a property I recently purchased in Kansas City (MO), and I wanted to ask if anyone had any tips or tactics that I could use to ensure I get a clean, no-drama tenant?

In order to prevent this post from becoming a discussion around the pros & cons of Section 8 tenants, please assume that I have already decided to rent to Section 8 and am now just trying to figure out an approach to find the best tenant.

Wouldn't using an S-corp instead of an LLC protect you from getting sued while also avoiding the $800 CA LLC fee?

Yeah this $800 LLC fee in CA is killer... need to think of some legally creative ways to get around it :)

Totally understand the concern around working with friends, but these ones are okay.

I should have mentioned that I am definitely meeting with an attorney. I just wanted to get a quick pulse from BP regarding the issue, and if anyone has a success story of something like this that was a win-win for everyone involved.

Fair enough :) 

All of the properties are in Kansas City (MO), but I would like to began purchasing multis in Ohio. 

My goal here is really to be able to set up my properties in the best way possible to leverage them to buy more, while protecting my (personal) liability as much as possible. I want to make it easy for banks/lenders to work with my entity.

Lastly, I have a fairly high risk tolerance level. I'll definitely be speaking to an attorney soon, but wanted to get a quick pulse from fellow BPers.

I live in California and own a few properties in the midwest, and I have heard not-so-great things about using LLCs for small-time investors (i own mostly SFHs and townhomes), like it's more difficult to get a loan to purchase more properties if it's owned by an LLC.

What are the pros & cons of owning under an S-corp? C-corp? Any other entity I'm missing? 

I have 3 good friends who are not involved in real estate, but have money and are trying to purchase a part of my LLC. At first I was against it, but I'm starting to warm up to the idea since I could use their cash as downpayment to buy more properties.

For example, they pay $X to buy Y% of the company. I then use $X to buy more properties under the corp. I'm a fairly small investor but I think this could start helping to really build my portfolio.

Has anyone on here ever done this? What kind of corporation do you have set up (LLC, S-Corp, etc)? How did you "value" your own corporation? And how often do you pay the others who bought a piece?

Awesome discussion everyone - love to hear everyone's area of interest, and reasoning behind it.

Not ready for Japan or the Bahamas just yet.... aiming to stay in the US for now.

Thanks for the advice, @Eric P. - appreciate it. I've bought a few SFRs already, and I am now trying to transition into multis. 

My problem with SFRs is the amount of time/focus that it requires to scale - I just don't have that kind of time to look into properties with my current full-time job.

Trying to hone in on one area in the country that has good cash-on-cash value + solid economic engines + good neighborhoods (for lower headaches, obviously). Hoping to start with a 5-10 unit multi, just don't know where the best value is. I have SFRs in KC, so probably leaning towards somewhere in midwest.

Thanks @Kim Younkin - I will check out Columbus.

@Eric P. - I liked what you mentioned until the last sentence :) Looking for areas that have bigger economic engines that can create stable renters and lesser headaches.