All Forum Posts by: Andrew Junquet

Hi Everyone,

My business partners and I are about to jump in to the rental business but we have some questions about setting up the company. I am in SC and they are in PA. We will be buying properties in both states. We want to setup an LLC for each property that will funnel money up to an S-Corp we will open in Delaware. We chose Delaware because they have no state tax so it will make taxes easier with this being a multi-state venture.

Our first house will likely be in SC so I am trying to work my way through the LLC process. Is there anything above just filing the LLC online? Do I need to have the S-Corp setup first or can this be done after we have the LLC and a house under it. We are in a bit of a time crunch due to a portfolio of foreclosed rentals that we will have access to soon.

Thanks!

I had this happen when we moved to a new house and made the old one a rental. I knew it was coming like you. I just calculated out what 6% would be, divided by 12 and subtracted the 4% rate. Then each month when I made my payment I included the difference in the additional escrow box for my payment website. They ended up owning me some of it back and adjusted my payment to the correct amount for the next year. It was much easier this way instead of trying to save it on my own or just waiting to see what would happen.

Hi Everyone,

I'm currently looking for a CPA in the Lexington/Columbia, SC area that specializes in real estate but will also handle my general taxes. I have one SFH rental at this point and want to get setup to add to this in the next year or two. My main concern is that due to my day job, I have jumped 2 tax brackets this year (I know, I know, its a "horrible" problem to have). I need someone that can try to minimize my tax bill as much as possible and that I can rely on in the future for my up coming real estate business also.

Thanks!

Andrew

The best resource I've ever found for how to manage your money while you're young and not try to pinch penny's is http://www.iwillteachyoutoberich.com

Ignore the name (I know it sounds gimmicky). The first personal finance book I ever picked up was by the owner of this site. It changed the way I look at money. I don't pinch penny's anymore. I just look for big wins, spend money on things I love and cut out the things that cost alot that I don't really care about. For instance, I work from home in IT so we have a single car between my wife and I. No need for 2 payments, tax bills, insurance, etc. We also don't have cable. Just Internet and streaming services. This gives us more money to spend on our primary house, my love of brewing beer, guns, awesome vacations every year, etc. We are also able to save money consistently and pay down bills quickly (for example we paid off $40k in student loans in 2 years). Take a look at the book below. It's an easy read but might get you out of this mind set.

http://www.iwillteachyoutoberich.com/book/

Doesnt matter if you are in state or not, the tax rate is for a non-owner occupied rate. Below is a link to the rental I own. We lived in it from 2010 - 2013 and then rented it out. The tax rates on Zillow are acurate. Should give you a good idea of what youre in for. You can also go on the counties website to get an estimate baed on the property value. 

http://www.zillow.com/homes/for_sale/119-riversong-rd-Irmo,sc_rb/?fromHomePage=true&shouldFireSellPageImplicitClaimGA=false&fromHomePageTab=buy

I'm in Lexington ,SC and have had our other house in Irmo rented out to the same tenant for almost 3 yrs with no issues. Appliances were already there since we bought a new house and ended up having to rent it out since it didn't sell. Wouldn't worry too much about the appliances aside from saying they are included. We don't mow the grass and the city already picks up the garbage. IMO focus more on getting a quality tenant that will stay for a few years and not so much on watching them on a weekly basis. I go months without contact from them. They only call when there's an issue and I ride by every few months when I'm in the area. Property manager takes care of the rest. This good experience has us looking into buying more properties :) SC is a great market for it. for the most part though from what I can tell and from renting in the past, no one in SC expects the extras you're looking at offering. I would see things like mowing they yard as an extra expense (time and gas) for you cutting into your net profit.