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All Forum Posts by: Brian Dudash

Brian Dudash has started 10 posts and replied 36 times.

@Katie L. Thanks for response and details! Based on that min. $800 tax alone is not worth it for me...

@Tom Kastorff I wish I was a multi-millionaire :) As you can see, I'm still learning a bit about REI and working to close my first deal and I'm trying to protect myself the best way possible. Appreciate the response and I think the Umbrella policy route is the way I'm likely to go.

I'm living in California and I'm in the process of getting a rental that is out-of-state (OH, specifically). I just recently found out about the ridiculous CA Tax for a Foreign LLC operating/doing "business" in CA, which even a basic phone call is considered "business". Since this tax is $800 per year, that really eats into my cashflow. The only thing I could think of is if my brother or parents, who still live in OH, become the LLC member(s) but I don't really want to put that burden on them (and not sure if that is even "legal").

The other option it seems that I'd have to go with is an Umbrella Policy which should be cheaper, when compared to the LLC and the dumb CA tax (but I do not have an Umbrella quote yet).

Are there any other reasonable options for coverage against your personal property/financials in case of legal issues? I guess this is probably aimed more for other CA residents that have rentals out-of-state but I'm open to anyone's opinions/options!

Post: 4-plex vs SFH Analysis - Need opinions

Brian DudashPosted
  • San Jose, CA
  • Posts 36
  • Votes 11

@Michael King It's in Ohio, not Cali :)

The city is Ashtabula.

Post: 4-plex vs SFH Analysis - Need opinions

Brian DudashPosted
  • San Jose, CA
  • Posts 36
  • Votes 11

@Jaysen Medhurst It's the way the guy who originally bought this building and rehabbed it. I'm not entirely sure why he is paying for all utilities but I believe the thinking is/was that since the avg rent in the area is around $600 to a max of $650, he decided to pay for a lot of the mentioned utilities as a "bonus" or to make it more appealing. He is only in this to flip it and not buy and hold (as you can see). While running my numbers, even if I stopped paying most utilities, I'd have to likely lower the rent to at least $700 which then doesn't really make a difference in overall profit.

@Aaron Taylor Everything is either 1 year or less old as he did a complete rehab on this last year. My parents checked it out for me (and my dad is a handyman himself), and they confirmed it was very well done.

Anyways, in the end, I decided to move on from the 4-plex...I just couldn't get over the area it is in and the future it may hold. I simply don't trust this long term.

Post: 4-plex vs SFH Analysis - Need opinions

Brian DudashPosted
  • San Jose, CA
  • Posts 36
  • Votes 11

@Jaysen Medhurst @Aaron Taylor @Michael King

Took me some time to get back to this but I did get a Pro membership to test it out. Here is the PDF sheet on this:

https://www.biggerpockets.com/...

Also, I was able to get the price down to $215k so that has been adjusted accordingly on the PDF.

The reason why he pays for all the utilities, besides each unit's electric, is due to the fact that the average rent in the area is around 600 to max of 650. Doing some quick math on the different scenarios, if I removed the cable, water, and gas - I'd have to make at least 725-750 per unit to make it "worth it".


Really the only thing holding me back is the location. I've mentioned it before but it's not in or close to a big city (about 1 hour drive in either direction). It's not a crime ridden city or anything but I'm having a hard time convincing myself it will not be an "issue" 5, 7, or 10 years down the road to find quality tenants w/out very long vacancies. For example, over the last decade (2010-2019) the overall population went from 19,100 to 18,100. As you can see there aren't a ton of ppl in this city and the overall county has around 100k total but it's slowly declining (this is my biggest "fear"/issue with this property).


So would you do this?



Post: Thoughts on Ashtabula?

Brian DudashPosted
  • San Jose, CA
  • Posts 36
  • Votes 11

Anyone?? :)

Post: Thoughts on Ashtabula?

Brian DudashPosted
  • San Jose, CA
  • Posts 36
  • Votes 11

I grew up and am originally from the area (Lake County, specifically) so I know the region pretty well, however, Ashtabula is not a place I know much about. I'm possibly looking into buying some rentals there.

Does anyone currently have anything there and if so, how has it been working out for you? The only main concern is the future outlook because that city is kind of "out there" and not by too much :) I'm a little worried about it being hard to find decent renters or buyers 10 or 15 years down the road...obviously the city isn't going to disappear but I'm curious to see what others think (or have in that area).

Post: Possible 4-plex vs SFH Analysis

Brian DudashPosted
  • San Jose, CA
  • Posts 36
  • Votes 11

@Whitney Hutten @Michael Ward Thanks guys and I think you are right...I need to really go with my gut feelings on this one, I think.

Post: 4-plex vs SFH Analysis - Need opinions

Brian DudashPosted
  • San Jose, CA
  • Posts 36
  • Votes 11

@Jaysen Medhurst Ah I see what the issue is - you must be either a Pro or Premium member to generate the reports...maybe I'll buy a month to test it out

Post: 4-plex vs SFH Analysis - Need opinions

Brian DudashPosted
  • San Jose, CA
  • Posts 36
  • Votes 11

@Jaysen Medhurst Thanks for the clarification. I feel really dumb asking but where do you find the buy and hold calculator? I've been searching the site and Google but I can't seem to find it... :/