All Forum Posts by: Brendan Illies

Hello, 

I'm a data-guy so I'm building my own deal analysis workbook. One thing that I've seen is a rather simplistic assumption regarding Vacancy and Maintenance rates as a percentage of gross income - typically 3-5%. I was wondering if anyone has some background on why these values are realistic expense assumptions. 

Feel free to add any other SFR operating expense assumptions that I should account for (i.e. not insurance, property taxes, PM company).

Thanks in advance.

@Chris Seveney Thanks for the quick reply. Could you elaborate on when an LLC can be handy? I would absolutely do my best to ensure separation of church and state so that piercing the veil isn't an option. However, that seems to require a lot of work after reading some other posts. Thoughts here?

And yes, transferring to LLC ownership would be the path forward if I were to set one up.

Hello! As I begin my SFR journey I'm wondering whether I should form an LLC or other legal entity that would help protect my personal assets and/or provide tax benefits. There also seems to be a non-insignificant cost with setup and maintenance of legal entities that could price out a beginner like me. Setting up an entity is not a show-stopper for me, but I want to make sure that I'm going down a path that will ensure safety for my family if something were to happen.

LLC

Protect personal assets and tax benefits due to pass through income. There's also the "due on sale" clause which doesn't seem to be in effect circa 2017 for conventional loans. Let me know if I'm wrong here.

S Corp

Great tax savings due to passthrough income and other benefits. Doesn't seem like my cup of tea because I don't intend to exit my first couple of deals within the same year.

Let me know any thoughts or if there's another entity that I should consider!