Second property

[Cristina Alicea]

Hi everybody, I'm new to bigger pockets and real estate investing, so I still have a lot to learn. I also have a couple of questions that I haven't been able to find the answers to while researching so I thought I'd send it out to all of you for help. I just purchased my first Multifamily property (a duplex which is netting me about $1,400 per month) and want to buy another one asap. I have cash for 25% down. Is there a waiting period to getting a mortgage on my next purchase? Should I set up a separate LLC for each property I buy or is there a different approach you recommend? Are there any books you all recommend that I should read about investing in buy and hold real estate? Also, another larger question. I've read a bunch about people getting investors to front money on purchases, but usually the examples given are in regards to flipping properties. Do any of you get investors for a buy and hold? How is that typically structured? Do they get a portion of the monthly income or do you refinance after a few years and pay the debt plus interest to your investor? I'm not clear on how that relationship would work. Thanks for your insights!! Cristina

[Brie Schmidt]

@Cristina Alicea

Is there a waiting period to getting a mortgage on my next purchase? Nope, the only waiting period is for owner occupied loans.  But some banks may want to have 2 years of tax returns showing the rental income to use it when you qualify

Should I set up a separate LLC for each property I buy or is there a different approach you recommend? It is going to depend on your financing. If you are using residential loans then putting it in a LLC could trigger the due on sale clause. If you are doing commercial loans and setting up an LLC is easy and inexpensive in your state, I would personally set up one for each

Are there any books you all recommend that I should read about investing in buy and hold real estate? I would read Hold or Millionaire real estate investor and listen to the BP Podcasts

As far as the partnerships, I have seen it structured many different ways.  It is really going to depend on the goals of each individual, their comfort level, and the responsibilities for each partner.  I work with our of area partners, they provide the down payment and we get a banks loan on the balance.  I do all the work and we split the monthly profit.  When we go to sell the loan is paid off, their down payment is paid back, and then the balance is split per our partnership agreement