Advice on first rental property

[Grant T.]

Hey everyone, I am new to Bigger Pockets so forgive me if I am posting this in the wrong area. I am 23 years old, own an LLC with my father and brother, and live in California. We are about to close on our first investment project. We bought land on a golf course in Montana, built a house, and am in the process of selling it. The closing date is scheduled for 9/8. Don't get me wrong, it was awesome completing our first real project and we learned a lot. We are making a decent profit but we do not want to do this again. Over the time this was built, I fell in love with studying rental properties and learning all about them, it's honestly an addiction now. We have all agreed that we are going to roll all of our cash and profits into multifamily rentals, and I basically have the most influence and decision power in terms of what we buy and where. My top locations right now are Columbus, Cleveland, Tennessee (still need to do more research on Tennessee but I like it a lot so far) , and possibly Texas if I can find a deal. Lastly, assuming closing happens, which it most likely will, I will have roughly $250k for a down payment, closing, and rehab if needed. I am still very aggressively looking, studying, and learning about other markets across the country. Any advice would be greatly appreciated from those who have done this before. Thanks.

[Katie Balatbat]

@Grant T.

Congrats on your first finished project, and jumping in further! Sounds like you have some great goals in mind. I don't have much to offer for the actual question that you asked, so I'll give a couple comments that are related. First, don't forget your estate plan as CA residents; CA probate is no joke and is really expensive, time-consuming, a matter of public record, etc. Second, if you're retaining the LLC that you have right now, don't forget that any LLCs that are doing business in CA have to register in CA. On that point, CA does not recognize series LLCs. Finally, if you're purchasing in a state where you will be subject to income tax in that state, be sure to coordinate with your CPA the spread in taxes between CA and that other state and make estimated tax payments accordingly. Good luck!

*This post does not create an attorney-client or CPA-client relationship.  The information contained in this post is not to be relied upon.  Readers are advised to seek professional advice.