All Forum Posts by: Anthony West

@Kuriakos Mellos

I am in the Grand Rapids market. I have only dealt with a couple section 8 tenants and they were great.

In my understanding, the rent for the section 8 tenant can only be raised once a year. I would raise mine every year to match the market rate.

Someone else can correct me if I’m wrong. I think raising the rent is going to depend on the last time this specific section 8 tenant had a rent increase.

Good luck!

@Brandon Koster

If you decide to sell, let me know

@Matthew Teitsma

Definitely. I signed up on bigger pockets hoping to network with local investors. Obviously 2020 has been a bad year for that. Looking forward to things getting back to “normal” one day

@Matthew Teitsma

Congrats on the first property!!

I am also in Grand Rapids.

Hi Charles,

Thank you very much for your insight. I definitely do not want to get into flipping as my primary source of income. More of a side project for something to do. I also think it would be fun as I enjoy updating houses and if I can make a little side income along the way, perfect!

Right now the market in grand rapids is just brutal. Pricing is way to high for flipping. It would be very hard to come accross a flip that makes it worth your while. However, I know ppl are still doing it, and doing it successfully. For me, my first one would just be to get my feet wet, learn the ins/outs and hopefully make some money (or worst case, break even). 

I am in no rush but if the right opportunity comes along I think it would be fun to try it out. My wife would enjoy it also. Then, after the first one, we would decide if it is something we would like to do again or not. My rental real estate investments have been doing great.

Thanks again for your insight. It is nice to connect with ppl in the area.

Tony

@David M.

Yes, this definitely helps. Thank you for taking the time to educate me on this. All makes sense to me.

And yes, I am an accountant and have very precise books. So I should be good from that standpoint. I have a different bank account set up for each of my rentals and all transactions are strictly for that specific rental; Deposits and Expenses. Business/personal funds are never intermingled.

@David M.

Thank you for the information David. My first few rentals I did purchase with the mortgage in my name and the transfer to the LLC as the bank told me I cannot put the mortgage in the LLCs name.

After reading your response to Shekinah, I’m assuming the reason the bank wouldn’t allow me to do that is because you would need a commercial loan.

Now that I know that, going forward what would be your advice for the BRRRR strategy. Buy it with cash in the LLC and then when I refinance, do so with a commercial loan?

What would you say are the pros/cons of a commercial loan? Is it easy to get approved for one?

Thank you for all of your help!

@David M.

Great. Thank you for passing this along!!

@Dustin Morris

The current properties I own are in an LLC. I would plan to have any additional properties I purchase go under the LLC also (or a new one). Sounds like I'll have to do some type of commercial loan once I get to that point.

Thank you for your response.

@Joseph Firmin

Good to know, thank you!!