Advice Requested - Making the First Purchase

[Brandon Smith]

Hey Family,

The quick synopsis - we currently live in Southern California and will be moving to Raleigh, North Carolina within the next 6-10 months.  My goal is to take this opportunity to make my first real estate purchase for a soon-to-be newly created holding company (registered in NC).  The hope is to purchase a home (financed) with my company, and then rent from myself for the first year as we figure out where exactly we want to live permanently.   Then, depending on the market and capital situation, continuing to pick up other investments.  

My biggest question (aside from the obvious coordination with a tax planner) is what are the potential pitfalls with this situation?  We are a big family (married with 4 kids) so space is needed, but I don't want to buy something that is "unrentable".  Is there a house that's too big?  We're looking at 2,500-3,000 sqft.  

[Chris Martin]

I don't know where you got the idea to hold your personal residence in a "holding company" that most likely will be a disregarded entity with absolutely no tax advantage over holding as your personally (as in your own name) owned residence... But whatever floats your boat. You'll pay more, but what the heck, you'll be the proud owner of a "holding company";) Joking...  DON'T DO IT. Unless you are CEO of this publicly traded (or soon to be) "holding company" and have a 'company provides full move and housing for executives' clause in your employment package... LOL! 

I don't get your question " Is there a house that's too big?" There is a perfect 3000 sqft. house for you on Glenwood Ave. that is under $1M. Is that what you mean? Only $250K down for your "holding company".  You can walk down to Glenwood South and meet up with AMZN employees at Sullivan's walking there from the new HQ-2 facility. LOL! 

There are some 3000 +/- 200 sq.ft. new builds in Holly Springs for $380K to $500K. No yard, but who needs a yard?  In all seriousness, I think you need a good local buyer's agent. Stick to buying a residence that you will occupy as a person. Get the government subsidized loan and save yourself a financial headache.  My 2 cents.