All Forum Posts by: Tom Makinen

If I buy a property with my MA LLC in CA and not tell them, I am going to be in a lot of trouble.

I wouldn't worry about the junk house, I would be worried about the personal assets.  If one gets hurt on the job, guess who they are going after.  It's not the house, it's you personally.  

In CA, the budget is set by the board, not the homeowners unless it is over a certain percentage.  It's actually quite black and white in the bylaws.  If you can justify the increase, there is absolutely no f-ing way they can avoid not doing it.  It would be totally irresponsible.

I totally get it, that's the reason I almost refuse to do HOAs anymore.  Good luck, sorry to hear.

Ouch, good luck.  

I believe there is a California state law that ban increase over 15%.  The late bills and mismangement should be paid via a special assessment, so it actually comes off after a set time.  Don't act like the state and put increases in that don't ever fall off.

They can't challenge special assessment, but they can certainly protest a 100% increase.  If it was me, I would look to fire somebody off the board.

It's Bridgeport and Connecticut, you probably get more growth buying Apple stocks and you don't have to worry about the city taxing you to death.  

Also invest in a life insurance plan and bulletproof jackets

I was raised in CT....

@Cameron Tope  I am not talking about income.  He can deduct the mortgage interest if he buys the investment on its own mortgage.  If he takes a cash out refi on his primary home, I think he can only deduct 25 or 50K from it (assuming it hasn't changed due to the Ryan tax plan).  He would need a business setup and issue a personal loan with interest to be able to deduct it.  

I had no problem getting a mortgage on my old condo for my LLC. I told them upfront it was for an investment and I have to personally guarantee it. I was like "co-signer" essentially.

Drawback is that the loan might get called back and you might have problems with title insurance....

I looked at it last night.  They are 350K+, generating maybe 1700-2K in rent.  I am not sure if it would be cash flow positive if you have to get a mortgage on it.

I ran the numbers and it might be better off than buying Bakersfield.