All Forum Posts by: Batool Hussain

I have bought 2 four plexes and looking to find the best structure with LlC , Lease and sub lease.

Looking for a tax account that n KC area.

Any recommendations? 

I am closing on my first property using FHA, interested in buying a 2nd property.

What other financing options can I use?

DSCR? What are the pros and cons ?

Any other financing options ?

Thank you. 

The deal is that I will have to sign off on the tenants that they select. The tenants will have to be voucher tenants plus additional criteria - good credit score, no record, working, etc.  

The difference in rent between voucher tenants and regular tenants is significant and is really the make/break of the deal from cash flow perspective.

The other quadplex have already been rented. 

@Eliott Elias:

I am not sure I understand - are you saying its not a good deal? 

A little bit more color - The area is in class C neighborhood, I will need to have tenants that are voucher (section 8) to make money.  Which is not necessarily a bad thing, this usually means stability in rental income and tenants. Reducing turnover. 

The neighborhood is currently where I was told a single woman would not feel safe living. But again, its gentrifying so may be temporary. I currently live in an area that was recently gentrified and apartments skyrocketed from 300K to 700K.

The developer and i are negotiating where I have asked for the building to be filled with tenants, he has agreed to it, and will put 6 months rent in escrow to cover the mortgage until he finds the tenants. He has raised the price by 10K for the additional work. 

I am an OOS investor and found a quadplex that I am interested in. I am getting mixed feedback on the area in KS - from the area is not where one would feel safe at night, to there is a lot of investment going on in KC, and it is becoming gentrified. I would just need to buy and hold. 

The deal analysis is showing very little cash flow, but I think the property will make up in equity what it will lacks in CF. Also, as I am from a state where the taxes are really high, moving to KSMO will also indirectly help cash flow by reducing my taxes (I am look at FHA loan, with ~3% down).

An RE mentioned, that 5 blocks either way, old homes are being torn down with new homes being built for ~700K. 

My thought process is that in the first 5 years I will break even, but then it would pick-up. 

Any thoughts?

its a vacant quadplex. The developer and I are negotiating that he will have tenants in it within 6 months, and will absorb the mortgage until we have tenants. I am not 100% about that area so want to understand my legal options and tax options 

Looking to purchase a multi-family in KC, MO. I dont have an agent, and buying directly from the developer, this leads to a few complexities that I need to address myself. Its my first purchase so looking to discuss and understand my legal and tax options. 

I am looking to buy my first property and not sure where to start with Tax & Accounting questions as out of state investor. I will have to travel to other states to look at properties - this quickly adds up $$$$$ (travel expenses) as my search area is relatively widespread - Ohio, PA, Kansas/Missouri and Florida. 

My question is when is the right time to open an LLC - shall I open it right at the beginning? Will I be able to claim these expenses? I am a single earner on a W2 so trying to limit my expenses as I start my journey.

What would happen if I open an LLC, and am not able to buy a property in 2023?