All Forum Posts by: Brian Neisig

Yeah, I am stuck in the "Paralysis by Analysis" stage.  My goal is to be a buy and hold land lord, but I want to get a good deal so it actually cash flows beyond expenses/emergency fund.  Plus I am happily married and plan to stay that way, so I have to convince my risk/debt averse wife that it's a good deal too.   That's quite the challenge right there.  

So I am new to Bigger Pockets, and I am listening to all the podcasts in order, have listened to almost 200.  I have one rental property, a town house i bought in April of 2007 (ouch) for $157k.  It's in Eagan, MN, 55122.  2 years later it was worth $90k, of course.  Now houses in that same neighborhood, identical to mine are selling for $180k.  This feels like things getting fast and loose again, right?  But I'm all excited to buy another rental property.  I like to buy near me and I live in Rosemount now, so basically anywhere in Dakota County is fair game, but I want to get a good deal, and I have to be able to afford it (planning on borrowing from 401K for down payment, or else being patient and saving up cash).  I don't want to screw myself by mistiming the market again.  Any advice, opinions, evidence or analysis would be much appreciated.  Sit and accumulate cash, waiting or a crash OR buy now?  That is the question.

Wow, thanks everyone! First, still not sure what I'm going to do. The Mortgage is with Chase, so I'm pretty sure the Due on Sale clause will immediately come due if we try to do this. The big time game plan is to eventually have a bunch of rental properties. It sounds like with this one we have to either pay it off, or at the least have the ability to pay it off, before moving it into an LLC. So it'll probably stay put for now. The Umbrella Policy is probably currently my best option, but I inherently distrust insurance, mainly because they don't want to pay you.

None of this means I can't create an LLC and buy my second property within it correct? Or does it have to have established it's own credit, like a kid who just turned 18?

We (wife and I) have one rental property, in our own names. I am seeking to limit legal liability in the event of the unfortunate occurring. I have always worked for 'The Man' and have 0 experience in starting an LLC, moving the house into it, or, possibly most importantly, how it will impact my taxes. The house has a mortgage on it, so a new LLC would have no credit history, so how could it have a mortgage? I've heard of a Due on Sale Clause. What could be done if that happens!?! What other things do I need to consider when attempting this? I am in Minnesota and I think LLC's are state specific, right? Any input or advice, especially from another Minnesotan investor, would be greatly appreciated! Skol!