All Forum Posts by: Aaron H.

Then yeah, @Darius Ogloza is exactly right - if you're wholesaling, be honest and upfront. Anything else will burn you in the long run.

You ask your bank or other lender (e.g. the hard money lender you plan to use) to give you a proof of funds letter, then you send it to the agent with your offer.

The only answer is "it depends." It depends on the specific property, it depends on how high the HOA fees are, it depends on what your goals are.

In general, townhomes will have a lower cost of entry, but will be harder to cash flow because of the HOA fees. Your tenants don't care whether you say the rent includes HOA fees or not, they care about how much it's going to cost them in total. $1000 all-inclusive is the same to them as $500 rent + $500 HOA. If the market rate for a 2BR townhome is $1000/m, you probably won't find tenants if you charge $1500.

My suggestion is to use the calculators here on BP to analyze the property, including ALL expenses and expected rental income - use that as a baseline to determine if it's a "good investment"

Depends on your risk tolerance. Safest place with a non-zero return would be a high-yield online savings account (e.g. Ally). Not a great return, but better than you'd get at your local bank. If you can accept a slightly higher risk profile, put it in a personal brokerage account and buy shares of an index fund like VTI.

Hi @Logan Marienau - I'm an investor based out of Steamboat as well. Derek is correct that there's some opportunity locally (mostly in Craig and Oak Creek), but it's generally a tough local market. I don't know much about KC, but can tell you that I'm in a few out of state markets precisely because the Steamboat area is too expensive.

If you have any interest, PM me and I can get you on the mailing list for our local real estate meetup - we typically meet once a month (lately, on Zoom)...

There are a couple books out there on Quickbooks for Landlords, at least one with a companion website with videos and additional resources. Don't remember the names offhand, but if you search the forums, you'll find them.

You can use the customer/job features to keep track of each property and tenants.

Search the forums - there are many posts on the relative benefits of using an LLC.

In your case, it seems premature. LLC's are a pass-through tax entity. Any repair costs or deductions you would take with the LLC you can still take on your personal taxes, it makes no difference. If you only own one property, it's probably more complicated than it's worth.

LLC's are for liability protection (and not fool proof in that regard), not for taxes.

When it stops working?

Every 6-12m (or even longer) is probably fine. Not worth the cost and effort to update on every mailing.

Talk to your local community banks - there's too many variables that go into your personal financial situation for us to know for sure.

In general, most banks are going to want to see some kind of seasoning on the LLC (6-12m) before they would consider extending credit. Even then, banks typically want to see a track record and what assets the LLC itself owns, and may still want a personal guarantee. And If you already have a first mortgage from the seller financing on the property, they're unlikely to extend a BLOC with the same property as collateral.

Call the bank and ask :)

Your best bet is going to be small local banks, credit unions, etc. Big banks (BOA, Wells Fargo, Chase, etc.) are usually much harder to deal with.