All Forum Posts by: Tim J.

A partner and I own a 6 unit in Barre VT.  Current market value is about 650k.  Balance of current loan with private lender is about $470k.

pro forma (and actual cash flow) runs about $1200 net each month.

Property is owned by an LLC of which we are the two members.

Last week I got a quote from a company for a DSCR loan for 9.25%.

We are happy to do full income verification and personal whatever to get a better rate than that.  

1. What options are there for this type of property for refi (we can do 70% or 75% LTV)?

Is 9.25% the best we can do? 

The partner in question has multiple times the loan amount in his bank accounts/liquid assets.

Glad to hear you got out of the deal!

If you are a new REI and never been a landlord before I would suggest re-thinking the rooming house goal.  Instead, find properties that already exist that you can make money with.  Building a rooming house with an ADU sounds like a zoning/approvals nightmare.

Have you ever developed/built a house project before?

Quote from @Kristine Ann:

Creating a New York LLC is not a hassle at all. It's very straightforward and the NY state website is very easy to use. The publishing requirement is a one-time thing. You publish in two different newspapers for six weeks, get proof and submit it and you're done. It's not difficult at all and it's not that expensive.

I challenge you to explain (to yourself) why you don't want to do the publishing.  If publishing is too complicated, then the work around will be even more cumbersome

It is an anachronism.  And it delays creating the entity 6 weeks.  It's wasteful and at this point I think the only real beneficiaries are the dinosaur print publications.

I already operate 3 LLCs for various partnerships based in other states. I don't need a "challenge" nor do I need to explain to myself... I find the publishing silly and if I can avoid it then I would rather avoid it. The question is, does NY consider owning and renting real estate "doing business". The question was not whether I should create an LLC or if I should reconsider my plans, etc.

The question is moot at this point.  NY does appear to consider it "doing business" so I will have to jump thru hoops. 

Thanks

I know it is possible.  The issue is that creating an LLC in NY is ridiculous - 6 weeks of newspaper publication, etc.  

The question is, is it necessary to register as a foreign entity if I already have an non NY LLC?  What constitutes "doing business"?

Some states do not count owning and leasing real estate as doing business.  

I think I have a definitive answer now, but wanted corroboration.

I have a few properties in VT held in LLCs.  Looking at a property in NY.  Creating an LLC in NY is a hassle - all sorts of nonsense about publishing in newspapers for 6 weeks, etc.

I tried to research what it would take to own and operate a rental property in NY with a different state LLC.  I discovered inconsistent answers. 

NY state website has a broken link to an opinion about what constitutes "doing business" in the state. 

It is not clear to me if owning a property and leasing it to others constitutes "doing business"  - in some cases it does not.  

Does an LLC from another state have to register as a foreign entity in NY to own and rent residences?

Has anyone gotten an answer to that from an attorney or NY state govt?  

Quote from @Sandeep Shukla:

Quote from @Tim J.:

Do not use RentRedi.  I tried it and it is awful.  

 Hi Tim - what do you use?

I use Stessa and Buildium

Use a real bank in addition to any online or Stessa accounts!

I use TD Bank.  Lots of ranches near me and where my units are - so tenants can go to bank and deposit directly into the account.

Do not use RentRedi.  I tried it and it is awful.  

Quote from @Ben Day:

@Juan Lizarazo plenty of options around. If your goal is to grow your portfolio and outsource all tasks, you can't go wrong with Quickbooks Online. It is the easiest software to get help with as you scale, and the easiest to delegate to a professional. 

Real Estate specific "accounting" software options like Stessa are neat, but hiring rockstar help for those is rough. 

Also, most of those niche options miss the mark on some bookkeeping fundamentals. It might not make a difference to you, but your tax pro and bookkeeper will hate it. 

I am confused.  What do groceries have to do with rental properties?