All Forum Posts by: Soh Tanaka

In general, the more equity you have, the more properties you are planning to buy in the future, the more LLCs/complicated structure you want/need. Starting out with just one LLC is what a lot of people do. That said, you want to talk to your attorney for your final decision.

If your plan is to rent out your condo in the future, I won't buy it, regardless of the length of the mortgage. You are not breaking even but losing money if PITI + $50 = Rent.

@Lien Vuong might have some suggestions.

I know this is not what you are asking, but done right you will make more money if you do cash-out refinance the primary resident with 30-year fix mortgage, and use the money to buy more rental properties. 

I'm always surprised that there are people out there who can afford QuickBook Online Plus. After the discount period is done, you are paying $840/year! If I'm not mistaken, they charge you more if you create extra companies (like creating different company files for different LLC for example.) In my opinion, pay $180 and get QuickBooks Desktop Pro. Even if you upgrade every 3 years, you are only paying $60/year, instead of $840. Huge difference.

Keep the cash. Your mortgage rate should be pretty low compare to what you can get in return in general from the $100.

You can call other property managers in the area and see if they will give you some advice. Also, ask your PM why they think the way they think.

@Steve Meyers For specific area, I would refer to those who actively sell properties there. If you want names, please PM me. 

Look into Northwest Indiana also. It's a pretty solid rental market. A lot of turnkey companies are selling properties there now. 

Accounting/tax questions:

Many of us know that in order to qualify as a real estate professional status, one of the things you have to do is you have to perform more than 750 hours of services during the tax year in real property trades or businesses in which you materially participated.

Would the time reading books related to real estate count as part of the 750 hours?