All Forum Posts by: Sartaj G.

@Jay Hurst thanks a lot for the tip. I think I am close to 60% in two of the properties and around 70% on the third one. Approximately how much better the rate get compared to 25% down payment on a 30 year mortgage?

@Warren Powers thanks for your note. Currently I have cash flow from my W2 job and investment account to buy additional properties at the rate of 2-3 per year for the next 2-3 years. My plan is to pay for the down payment and closing and use the rent and some additional cash to accelerate mortgage payment on 30 years loan to pay it faster. Please do share if you found a good software for retirement planning. Currently I am using EMpower Personal Dashboard to keep track of my different accounts/networth but have not done anything beyond that.

@Daniel Tanasa thanks for your input. I think the consensus here is to pay all additional payments to highest rate mortgage. 

@Rick Albert thanks for your input. I am invested in stock market and have been diversifying into real estate over the past couple of years. I have a good W2 job so I am not after cash flow at this time. I am planning to scale up the RE portfolio over the next 1-2 years and aim to pay off all/most of it over the next 8-10 years when I am closer to retirement. 

Given the high interest rate at this time I am wondering if I should pay down the high interest rate loans equally or pay all the additional principal to one house and pay it off faster adn then move onto the next house. When opportunity to refinance arise which option will be better? I am not planning on selling the rental houses for a foreseeable future.  

@Patrick Roberts thanks. On purely based on numbers you are right. but given the small difference in interest the difference will be marginal. 

I was thinking more on the lines of building equity in one rental at a time at an accelerated rate or in all rentals. Also, if/when rates go down what will be a better scenario in terms of refinancing? what about risk point of view?

Hi All,

I have a few properties with 30 year fixed mortgages in 6.5 - 6.875 % rate range which originated in the past 2 years and 2 properties with 15 year fixed mortgages in 2 - 3% range which were originated long time back with not a lot of principal left. I am currently paying additional principal ($4000-5000 per month) spread out to most of the properties but was wondering if it will be better to apply all of the additional payments to one of the house pay it off and then move to another house? Has someone done an analysis on this kind of scenario?

My long term objective is to pay off all of the houses over 8-10 years (before retiring from my W2 job). 

Thanks a lot in advance. 

@Aaron Zimmerman sorry for not being clear. We have 10 rentals out of which we are self managing 9. They are spread over 50 miles that's why I thought of putting a vehicle in LLC. In any case there will be both business and personal miles on the vehicle.

My wife does not have a real estate license but that is something she is somewhat interested in. We will check what all it will entails. My kid can suerly do basic bookkeeping. I will check that out. Looks like its time to engage with a CPA. Thanks. 

HI @Jill F.

, thanks for the information. Right now I am not planning on putting any of the properties in LLC. I am only considering LLC for managing and accounting purposes.

@Aaron Zimmerman thanks for your pointers. We are looking to scale our RE portfolio a little more over the next 1-2 years so wanted to set-up something which will help us keeping things clean and also help with off-setting business expenses. So far we have not charged any expenses to the rentals (as they were a few). I am thinking about home office, phones, RE related milage and meals, may be buying a vehicle via LLC. Anything else which makes sense?

Also, as my wife does not have a W-2 job and help with the rentals, I want to explore pros/cons of her to qualify as RE professional down the road (may be from 2026).

I start involving my kid for bookkeeping and other small tasks in the near future. Is there a minimum age requirement for this?

@Aaron Zimmerman I agree that there is no taxation or liability benefit. The LLC is single member (me and wife, which is considered single member in Texas). Also, I have a 12 years old kid. Not sure if / how my kid can help with the management.

My intent is using LLC to keep all the RE related bookkeeping clean (through the LLC) and charge the RE related expenses to the LLC. Currently I am not charging any expenses to my real estate income. Going forward I am thinking of charging for home office, phones, related car and meal expenses, potentially a vehicle in LLCs name, etc. Not sure if there will be any issue with this.

I have a W-2 job and my wife is stay at home mom and help with the rentals. Not sure if this can have any implications. Thanks.