All Forum Posts by: Bill Engel

Thank you Steven, will touch base.

The cottage is same deed.

Hi -

About to list our approx $500k Single Family Home which has a second cottage home (former garage) with a long term renter. We have only had the home less than a year but as both of our jobs are now 100% remote, we would like to relocate. 

Would like an experienced realtor who is experienced with marketing the income / house hack potential if at all possible. The cottage potentially covers a third of the mortgage or could rent the main house as well to cash flow. We wanted to reno the cottage but the renter is great and loves it the way it is.  

Thank you,

Bill

@Sylvia B. Got it. Much appreciated Sylvia!

@David M.

Great stuff David. Thank you!

We just started the holding company. The management LLC (now under the holding company) does Property Management and Office Management and has other customers. My wife draws a salary for this work from this third party income (not our own).

It makes sense we should not charge ourselves for our own property LLCs and that this should all pass to the holding company.

Great info Sylvia. We have just setup a very similar situation with a holding corp that has three LLC's (two properties and a property manager). One of our properties is a short term vacation rental so no security deposit. I get how you setup the accounts but wondered how you handle the transactions:

Scenario: Renter for Property A pays rent to management company which deducts expenses (HOA, Maintenance, Taxes, etc.) and then pays you the balance as cash flow.

Questions:

• 1. Does your management company charge a management fee?  
  • If so, flat fee or %?  
  • Do you pay the fee or does the property LLC?
• 2. I don't see any scenarios to move money to holding company. What do you use that bank account for?  
• 3. Also don't see scenario for the vacation property bank account as no security deposits. Property manager LLC handles the reservation, pays vendors, taxes, gets direct deposit from AirBnB and then pays me directly.

So end of day, we know the corp and LLCs have to have a business purpose which implies bank account and operations. Just wondering how you handle it. Thank you! 

I've done seven investments with EM over the last year and a half.  Four are cash flowing as advertised. Two were recent and are closing shortly. The last one is an opportunity zone vehicle that is investing in Mobile Home Parks that is supposed to start cash flowing in March.  

I just felt like the commercial opportunities on this site were a good way to diversify from a handful of single family and condos and a few multi-family syndications. Can also diversify geographically and many types of investments. Finally, there are typically opportunities that I might consider recession resistant. The mobile home park, student housing, strong brand hotels near airports and schools, etc..  

They have a good track record and they invest in their own deals. So far I am just under 13%.