All Forum Posts by: Henry Le

Hello BP community,

I have a newbie question.  Let's say you own a rental property.  How do you go about arranging the electric, gas, water, and other utility bills to be paid by the tenants?  Do you deactivate the services and have the tenant switch them on to their name when they move in?  

Thanks and cheers!

@Chris Vail 

Thanks Chris.  Yeah, I looked at some property management companies in the area.  They don't provide their rates via their website, guessing you'll have to make a call to find out.  I spoke to some investors in Sacramento area, and they're all saying it's getting harder to find deals.  Some are looking out of state.  

This deal does look very slim once you run the proper comps.  Thanks again everyone for the feedback! =)

Hi David,

Thanks for the great info.  I didn't factor in the repair serve and vacancy.  I will now.  For the management fee, is it usually a percentage of the rental price?  Do some companies offer a flat rate?

Thanks again!

Hi Terry,

Sorry for not including those details.  I believe the interest rate would be 4.30% for a 30 year loan.  Insurance would be $50 a month I'm guessing.  Property tax is 1%.  I didn't consider repair costs, amortization period, etc.  I will now thought, thanks!

Cheers and happy investing!

HI Erik,

Thanks for the reply.  Yes, the $250 monthly rental income would be after the mortgage, property taxes, and insurance.  I didn't factor in maintenance, vacancy, etc.  

I'll have to carefully analysis this deal again.  Thanks again.

Hi everyone,

I'm thinking about purchasing a small 1,000-1,100 square-feet single family house for $150,000.  I'm going with the 20% ($30.000) down payment and finance the rest through a bank.  The estimate rent is $1,100 per month.  Property tax in the area is 1% of the sale price I think.  After all expenses such as mortgage, property taxes, insurance, etc. would this be a good deal if my aim is 10% cash-on-cash return?  

I'm new at this and it would be my first purchase.  Thanks!

Other information:  The property is located in Sacramento and/or Elk Grove, CA.

I don't put much thought into macro events. It's fun to ponder, but recessions and black swan events are completely out of our control.

I actually view market crashes as a good thing. I mean, if you like something at one price and if you were able to buy it at a cheaper price then why wouldn't you?

Everyone says cash is a horrible investment. I think its excellent to hold cash when opportunities and bargains are scare. Cash combined with courage in times of crisis is priceless. So when corrections and bear markets occur in the real estate, stock, or bond markets and you have access to cash to buy things cheap then good things will happen.

I don't know how to time the market; however, I've made money being invested in the market over time. Avoid being highly lever and have access to capital and bubbles and recessions will be an after thought. Just my two cents.

Thanks, this is really great information Bill and Bryan! I only plan to contribute capital to the LCC and not withdraw any from it. I'm sure my accountant will have a headache dealing with my taxes if I structure the parent LCC in this manner, but that's what I pay him for anyways haha. =D

I'll definitely do more research and seek legal advice before starting a company. At least now I have a better understanding of the legal and tax implications. So thank again everyone!

thanks for the information thus far. I will continue to research further, thanks again!

Have you looked at legalzoom? I established my LLC through them and it cost around $100. Also, you can speak to an attorney by phone on an unlimited number of new personal or business legal matters for around $25 per month. It's not a bad deal and the service is very comparable to the traditional attorneys.