All Forum Posts by: Paulina Purnama

 Thanks Gary, 

These are lower quality smaller townhomes. I would prefer to actually make it a real 4 plex and sell it to an investor down the road, or even have someone house hack. It seems to me that would be more valuable than selling them off individually. Same problem would arise for the new individual owners who share common roof and utilities. 

I just don't know if taking 4 individual townhomes that share a roof and converting them into a residential 4 plex with one address is even possible. I guess I have to call the city and ask them.  

Sorry if this may be a duplicate. I think I posted it in a local category before. 

Hey guys, I came across a off market bundle of 4 townhomes. These are older 80's builds but in a Class B working class area that is booming. Lots of shops in the area and they are building a new multifamily down the street. Also lots of other older townhomes in the area.

It was initially marketed as a 4 plex and when I dug deeper realized that these were four individual townhomes. They are selling all four units but they are zoned single family homes and taxed individually. They all have separate electric but they share water.

I've read the previous posts that warn about purchasing townhomes without HOA because you can't always agree with the other owners about fixing the roof and such, but since I will be purchasing all 4 units does that negate these negatives?

I've also heard townhomes just don't appreciate much. This deal does have some cash flow, but not a huge amount, but its in a highly desirable area close to everything. Another set of 4 units is under contract down the block for about 10% higher that what this one is selling for.

This something I should think about purchasing with a bundled portfolio loan? I already have 8 fanny / freddy individual mortgages and would not qualify for 4 more. Kinda sucks. So I would only be able to do a higher interest rate portfolio loan on this. Numbers still are OK, but not out of the park great.

Also, has anyone ever heard of going to the city and rezoning this into a actual 4 plex. With one address and the units individually labeled A,B,C,D...? So it would be taxed as a residential 4 plex instead of 4 individual single family homes? Advantage of this is it would fall under one loan and be able to get ONE federally backed fixed rate mortgage (since its only 4 units)

Any input is greatly appreciated!!!!

Sorry, duplicate post. 

I posted it in the general discussion group instead.

https://www.biggerpockets.com/forums/311/topics/841874-townhome-without-hoa-but-buying-all-4-units-rezoning-possible?page=1#p4948557

@Brittney Johnson

Hi Brittney! I am also starting out in the DFW Market, but not new to investing. In Nashville, where my other properties are located the typical management fee is as mentioned 8-10% of gross rents, however, what I do see a lot of variation in is the "lease fee" the percent of the first months rent to procure the tenant. In Nashville, it is typically 50% of the first months rent. In DFW i'm surprised that some companies are charging 100% of the first months rent as well as "feeing you to death"

Being out of state some of this is un avoidable as you can't really double check their work. That is what I'm finding out the hard way with repairs and such. 

I did find someone in DFW who said they would take 75% of the first months rent and a 8% fee, but after I asked for a few changes in the management agreement they turned me down :-) I DEFINITELY DO NOT want to use a company that can't even have a reasonable conversation with me and be able to justify their fees. If they could I would be happy to pay. 

Have you found any quality / reasonably priced management companies? 

Anyone else have any recommendations in the DFW area?

Hi guys, old thread, but I also need recommendations of a residential property manager in the Keller / Mid Cities area of DFW. 

I will contact oneprop, but any other recommendations? 

Thanks!

Hi guys, old thread, but also need recommendations of a residential property manager in the Keller / Mid Cities area of DFW. 

@Troy Reed

Hi Troy, my partner and I are looking into the louisville market. You find anything good in the past few months? We are mostly interested in buy and holds, sfh, duplexes, etc...

Feel free to reach out to me if you come accross something. 

Thanks!

@ryanmurphy 

great summation of points! For most mom and pop investors it may be a bit much but if you are actively involved in the re business and are doing flips, buying holds, doing renovations and this is a full time job then yes your strategy may be worth pursuing. 

One major blow to the anonymity aspect is that most mom & pop investors use conventional financing. That means the mortgage is under their personal names. When they tx deed to llc or do a trust, it's still easy to find out who is responsible for the loan. 

May be something to think about. 

@Bob B.

I did speak with the original lender, he said I could quit claim to LLC but then loan was sold and new servicing company states I can not. Go figure. I think any of these fanny freddy loans prohibit transfer of the title.

Hi Guys,

I've been reading many posts on LLC's, quit claim deeds and such and I have been getting very confused with a lot of the things out there. I know there are hundreds of posts on this topic and I have read many of them. I still am still confused about the best option for me at this point. I have a situation that I need some help with...

My partner (brother in law) and I were planning to purchase out of state properties as buy and hold rentals (all residential with less than 4 units). We set up a LLC in the state in which we intend to purchase. We talked to many banks about loans but the issue was no bank would lend to us in the name of the LLC.

We then decided to each buy a property under our personal names using our personal credit. We used conventional financing with 25% down as non owner occupied investment properties. We now intend on quit claim deeding the title over to the LLC. I know there are strong reservations against that due to the "due on sales" clause being violated. Is there any other option or way around this? I have heard a lot about land trusts but again these are from gurus trying to sell things. I've read the numerous posts and blogs about this but still can't come to a conclusion if it would be viable option or not. I've called many attorneys and most just tell me to keep the property in my name, get insurance and be done. No one has suggested a land trust since they say that because I have a mortgage my name will still be public record.

The other issue is that I am a high net worth physician and asset protection is also very important to me since I will be a target for law suits if the properties remain under my personal name. We already have a commercial insurance policy in place with 2/4MM liability but still would like to have the protection of the LLC, as well as build credit in the LLC to be able to buy future properties in the LLC name.

I've been struggling with this for a while and still don't understand the best way to move forward. I know the best thing would have been to obtain a loan via the LLC and title directly to the LLC name but even if I would be able to find someone to loan to a new LLC (with my personal guarantee) it would likely only be a variable rate loan with much higher interest rates.

At this point am I stuck having this property under my name or should I just take a chance and quit claim to our LLC and hope the bank doesn't call the loan. If they do I can always title it back??

Or, just keep it in my name, buy more insurance, set up a general partnership with my brother in law and pray no one looks up who owns the property and notices I'm a physician.

BTW, we are purchasing duplexes in nice areas that are professionally managed. These are not $500 section 8 type units.

Any input on the matter would be greatly appreciated! 

I just can't seem to get a straight answer from anyone. I've reached out to attorneys as well as CPA's and get mixed suggestions.