All Forum Posts by: Andrew C.

Hello @Nicholas Aiola

I wonder if you can clarify an entity structure I've seen discussed, but have some questions about. I'm buying properties in two states (WI and IL), am a WI resident, and would like the anonymity a WY LLC provides.

The plan is to setup a WY LLC as the 'parent' company, with 'child' LLCs in WI and IL, solely owned by the parent, that each own properties only within their respective state.

1) I have need an account for each child LLC, correct? Do they each, independently, pay the mortgages & expenses, and receive the rents, from the properties they own?

2) I've heard of people setting up another child LLC, in the state where they reside, to handle the books. In that case, would IT pay the mortgages and expenses, and receive the rents, on behalf of the other child LLCs (the property owning ones)? Does that simplify book keeping or other issues?

3) do I have to disclose myself, personally, on the child LLCs when they're created in WI / IL, or does only the single-owner (the parent WY LLC) go on the creation & annual forms, hence I'm still anonymous?

4) since the parent LLC isn't doing anything at all except holding ownership of other LLCs from other states, does it have to file as a foreign LLC anywhere? Or can it just remain an WY LLC?

TIA for the awesome and helpful answers you've provided!!

The missing light switch cover is probably a code violation.  That’s unsafe.

thanks for the thorough answer. That clarifies a lot.

that at least explains it somewhat. And, I get that the required ratio goes up and down over time, but at least per

https://homeguides.sfgate.com/...

in 2012 the requirement was 50%. I'm seeing most HOAs with limits like 15% or 'at most 4' in a 120 unit HOA. That just seems obnoxious. :(

I've been looking at condo units as a plausibly lower maintenance option for rentals. One issue I'm finding is that nearly all of the HOA docs 1) assert that rentals are allowed 2) limit it to a tiny fraction (e.g. 4 out of 120) that can be rented at a time and you have to provide a copy of the lease to the HOA. I can understand why the HOA would want a copy of the lease. The restriction on the owner's rights that preclude me from renting it at all because 3-4 other units are rented seem like an overreach. WI passed a state law not too long ago that, if I understand it correctly, precluded municipalities from preventing rentals of at least 30 days. I wonder if this applies to condo HOAs, as well? Can / do-in-practice they actually prevent you from renting it out on a long-term basis?

I am a high-income W2 employee. DW is not currently employed, other than involvement in our planned RE adventure.

Can someone clarify what counts for REP status? Any chance you've got links to srcs (case results, etc?).There seems to be huge confusion on this, even from the CPAs, and it seems it may have moved over time.

Specifically, the question is meeting the 750 hr bar (I understand the material participation req's may be distinct):

- does time spent finding properties to acquire and later rent count, assuming the search was being done for properties in an area where we do end up acquiring something? Both online and in person?

- I assume actively rehabbing the place (icky carpet removal, work to clean it up), as well as time spent planning that counts?

- time spent figuring out what to charge for rent? investigating the relevant tax law and such?

- screening tenants?

 not in CA. CA taxes (even LT) cap gains as regular income. You get to exclude (I think it's 30%??) of the amount for the state portion - check the CA regs. But otherwise, I expect you're paying 20% Fed CapGains on this + like 11% CA. and also your state's CapGains tax if you live out of state. wheee. 

 This. It an be the P/S trap anywhere...I had this on the drain below an in-unit laundry room, in a shower they don't ever use, etc. they can all dry out, and you'll get occasional smell, mostly when someone flushes a toilet or similar. But, as everyone has mentioned, it's not the actual toilet...and certainly not a pair of actual toilets.

Don’t think I’ve seen this possibility, so I’ll add it.  I’ve had this.

the issue was the trap went dry under the in-house laundry.  The laundry room had a drain in the floor, it prevent overflow I suppose. It was actually under a metal catchpan that the washer and dryer sat in.  That went dry, because ofc there’s never any water going down it. Flushing a nearby toilet would cause a woosh of air in the pipe and create a smell.

The solution was to pour 2 cups of marine (rv) anti freeze and a bit of water down that drain to fill it with something that won’t evaporate.

Looking into this, myself.low-friction rent collection and low cost are the must haves.  Not sure what else I should be looking for.

anyone tried Azibo?  It is free, which is nice.