Long Term Rental Investing

[Corey Blake]

Good morning all!

First and definitely not last post or question here. I looked around a bit and didn't find anything that came up in relation to my personal question. Anyways...!

I am looking to purchase a multi-family home, outside of New York due to tenant-landlord issues here (really the fear of it). My goal is more for passive income/break even along with wealth later in life, currently 35 YO. I've been doing homework, listening to pod-casts, reading and the knowledge out there is phenomenal and overwhelming at the same time. I do not have any affiliation with others locally or anything either to discuss, willing and open to knowledge and conversations!

That being said, if doing so, what is the best way to go about it? I'm sure I'll have many more questions to follow as well. 

Appreciate you all!

[Samuel Diouf]

Quote from @Corey Blake:

Fair, I can see how I was scatterbrained there. First post jitters! Appreciate the reply as well!

1.) Looking for alternative areas outside of NY/NJ/CT area

2.) What are the biggest hurdles with purchasing in a state that is much further away (Midwest etc) and is it smart for a first property? It seems money can travel much further outside of our area.

3.) Recently opened an LLC and would like to run the financials and everything through that. Will a lender still need to look into personal capital etc?

-If I move money from my homes equity into the business account, will that red flag? 

-How does LLC/personal loans differentiate when applying for loans?

1. A lot of Midwest markets like Columbus, Ohio have excellent MFH markets 

2. One of the biggest challenges is understanding the different areas of the market and building the right team to handle your OOS investing without having to travel to your investments all the time. 

3. For the lending it will be dependent on what type of loan you will be using. DSCR loans are based solely off of the properties income so the LLC wouldn't need any income source.

- I would speak with an attorney regarding transferring the equity to your businesses.