Taxes/LLC in VT/PA, Lawyers, & Ideology

[Michael Cohen]

Hello all from Burlington VT,

  My name is Michael and I joined Bigger Pockets about a year ago mainly for the ultimate beginners guide. I obviously still have questions after purchasing a duplex in Burlington. I kept reaching out to folks at work who used to be in the business 5-20 years ago and realized I may have some better success here!

- Does anyone know a good accountant in the area to work through LLC discussions and help me understand more about taxes in the income property world. I also own a property in PA that would need to be addressed as well.

- Lawyers: I have not had the need (ignorance possibly) to hire a lawyer as of yet. However I imagine having someone that could support me in an untimely event may be a worthwhile venture. Can anyone recommend someone in the area that specializes in real estate? Besides the liability side of things, is there any other reason I would need one?  

- I rarely hear stories of someone purchasing an income property and paying it off completely asap prior to acquiring the next property. Generally speaking it seems like a race to see how many properties you can get as fast as possible. I understand that with the interest rates currently why this thinking is smart. However I hate to pay double for the house I purchased (after 30 years) if I can help it. Can anyone shed some light on this topic? 

Thank you for reading, 

Michael Cohen

- 

[Blair Knowles]

- Does anyone know a good accountant in the area to work through LLC discussions and help me understand more about taxes in the income property world. I also own a property in PA that would need to be addressed as well.

Christopher Heald 

or

Jeff Harton Harton & Associates

I have not used either, but both were recommended to me.

- Lawyers: I have not had the need (ignorance possibly) to hire a lawyer as of yet. However I imagine having someone that could support me in an untimely event may be a worthwhile venture. Can anyone recommend someone in the area that specializes in real estate? Besides the liability side of things, is there any other reason I would need one? 

Angela Zaikowski

http://vtlandlord.com/our_association.php

Richard Fox

http://www.foxlawvt.com/real_estate.php

- I rarely hear stories of someone purchasing an income property and paying it off completely asap prior to acquiring the next property. Generally speaking it seems like a race to see how many properties you can get as fast as possible. I understand that with the interest rates currently why this thinking is smart. However I hate to pay double for the house I purchased (after 30 years) if I can help it. Can anyone shed some light on this topic? I think the idea when you are younger is to get as many properties as possible to cash flow so that you have passive income and freedom (bonus points you will be building equity and your dollars will not be depreciating at the rate of the US dollar). Say you have $100,000. If you put all of your $100,000 into one property (say it is cash flowing $300 a month) you have more equity in the building and you are closer to paying it off, but what does that do for you? You are still only cash flowing $300 a month. Say you can take that same $100,000 and use it to buy 5 properties (mortgaging the rest  or using other peoples money/seller financing- however you do it) and each of your properties is cashflowing $300 a month. Now you passively make $1,500 a month. Make sense? 

I am a fan of 30 year mortgages and paying an extra principal payment each month. This way I have the option of a 30 year mortgage and can pay less if I am tight on cash but still pay it off in 15 years if the cash is there. Have you ever heard of this technique?

Where is your duplex? Mine is in the old north end.