All Forum Posts by: Ryan Kelly

@J Shoe A trust isn't used for asset protection purposes, it is purely for estate planning. The 10-Unit complex would be a commercial business, so the simple answer is to purchase and operate in an LLC. If you want to have the LLC owned by your trust, that is always an option. As others have said, I would talk with your CPA and asset protection attorney for formal advice.

@Austin Bright Texas is currently seeing very aggressive premium hikes due to several large insurance companies pulling out of markets and due to claims for numerous storms and natural disasters (hail, hurricanes, Houston floods, etc). I’m commonly seeing policies going up 25% to 60% year over year. I can’t answer specifics about your property, but not surprised you are seeing a steep rise.

@Ilan M Aliphas read your contract. It should outline specifically what will happen if specific decisions are made and who is entitled to the earnest money. Did you use a real estate agent? Title company? They can assist you.

@Daniel Barad do you have a good relationship with a real estate agent? If so, have them pull lease comps to see what similar properties are actually leasing for, not just advertising for. Takes 5 minutes and far more accurate than the guessing game of online estimators.

@Sarah Ali you are never too old. We purchased our first rental when I was 44 years old and now have 7 units a few years later. Who says you need to pay the mortgages off? For many of us, the debt is an asset which can be refinanced for extra cash as you pay down equity. Don’t make it complicated. Go find ONE property you want to own, run the numbers, and buy it.

@Scott Trench most people are not investing in the state, but the city in the state. Many are actually in blue cities in red states, like Austin, which is a great balance. Progressive, fast growing cities with landlord-friendly state laws. It’s a good balance.

Austin simply got overbuilt in the short-term, especially in multifamily, which is creating a bit of over supply, but that will fill up in the next 1-2 years with the pace of growth. The land and landlord laws have nothing to do with present day conditions or concessions. Just look at two years ago when landlords got multiple applications in hours and tenants were willing to pay 20-40% higher rents to “win” the lease. It always comes down to supply and demand.

@Aaron Gordy It's also still early days for Tesla in Austin. It will take several years for them to get the right balance of employees and production. The growth now will be in the ancillary businesses moving to the metro to support Tesla and other tech-focused manufacturers. Still booming.

@Lilly Fang I recommend getting legal advice at this point. Most contracts will have a specific closing date agreed upon, which can also be amended with agreement between the buyer and seller. You are not legally either party to the original contract as best I can tell. See what your options are and make a decision with legal assistance.

@Floris V. I own rentals in Temple and have helped client purchase both duplexes and MTRs in Temple. Happy to chat and share trends in the market.

@Austin Merritt the benefit of the VA Lon is you likely put 0% down to buy it in 2021. Over the past 3 years, you are still only in the property for a few thousand dollars in the principal you have paid so far. You also have a loan % you will likely never see again. If you "invest" an additional $1,000 through negative cash flow a year, but it appreciates $10,000 a year, you are getting a 10x return on that money not counting any other benefits you could receive. Once your monthly rents increase $100/month, you should be breaking even.

None of that matters if the property doesn’t align with your long term goals. Once you know exactly WHY you want to own real estate and the STRATEGY you will master to build your portfolio, the answer will present itself.