All Forum Posts by: Samir Pathak

Did you decide to refinance at the 5/1 with the idea that you'd sell before the term or re-finance to better conditions?

Would love to pick your brain more over coffee to learn more about your strategy and experience as I'm just getting my feet wet in this!

Hi @Anthony Addessi - congrats on the success!  Did you buy the property with cash or did you do a conventional mortgage to secure?

In your pro list - you comment that you don't want to eat up too much of the cash flow.  Does that matter as much since you were able to take out your original principal as well as the $125k in forced appreciation (assuming you refi'd at 1.5 MM)?  How long would it have taken you in monthly rents to achieve that return?

@Al Williamson That's what I'm hearing albeit it history isn't a prediction of what'll happen if I go that route.

@Naseer Khan - that makes sense. Could this be a case where we used a land-trust to purchase the property and then have the LLC be the beneficiary of it to get the liability protection and anonymity?

@Al Williamson One of the things I'm struggling with right now is whether or not to form the LLC. I know long-term I'd like to have my properties under an LLC, but as you mentioned the $800+ in yearly fees wipes out a lot of profit right away.

My question would then be - if I buy the property under my name, how do I transfer the property to the LLC at a later time? I know you can go to a title company and pay the transfer fees to move it from my name to the LLC, but there is a possibility the lender can call the due-on-sale clause.

Let's assume I'm able to transfer the title to the LLC and the lender is okay with it. I would then have the LLC on title, but the mortgage would still be in my name. Do you know if I still get the protection from the LLC or am I liable because I'm on the mortgage? I know I'd need to consult with a lawyer, but wondering if you had any experience. Thanks!

(cc: @Naseer Khan)

@Sergey Tkachev - thanks for confirming!  From the properties I'm seeing so far, the numbers aren't really working out (rents aren't keeping up with the appreciation of the homes), but nobody said finding a deal was easy. =)

Thanks for the tip, @Penny Clark!  

@Account Closed - that makes sense about avoiding lien issues.  can you share what estimates you use for sewage and garbage estimates?

@Harman N. - yup, that's me.  It was my first one so I didn't know what to expect.  Definitely looking forward to the next one!  Since we are both in sf, we should grab coffee and chat. 

@Jeremy Brown - that was insanely helpful!!  I will definitely be using that as input during my tour.  Are you solely SFRs or do you have MFH as well?

@Rahul Bhatt - I'm still debating between LLC vs. Umbrella insurance, but want to factor it in the min in case I go the LLC route.

@Account Closed - are you going to do some improvements to the place? Maybe you can go FHA w/PMI until you force enough equity to refinance w/o PMI.

Welcome, Erik! I'm new to the community as of the last few months as well. Get ready to learn a lot! The broken record that you'll soon realize (if you havent already) is network, network, network! There are a few meetups around the bay that people recommend - 1 here in SF led by J Martin and two in Milpitas and SJ (sorry cant link you because I'm on my phone) Also check out the beginners guide to investing here on BP and really take some time to figure out your enter/exit strategy as well. Best of luck and happy learning! Samir