All Forum Posts by: Caleb Ray

@Mary Schlabach I am also new to this, in the Goshen area, so I don’t have any advise but hello and welcome to BP!

This is an old thread I know, but how do you get the owners contact information? My wife are in the same exact boat as the original poster. Want to get started on our first residence with a duplex.

There are lots of duplex's in our area and would be happy with any. Do you just stick it in the mailbox and hope it gets to the owner? Odds are those are all just tenants.  

For sure good points. The ladies hire people to do the yardwork, so I am not super concerned about that.  I guess the trade off for this is the amount of work we have to put in will be minimal. I am thinking we would have to go in at 235k to ease my mind on it.  

I think down the road it could for sure use some updating (older carpet, cheap wood flooring, old cabinets) but then again it is Indiana and adding that stuff to a duplex doesn't add much to the value.  I don't think it is risky per say, but this property would be a purchase more for the equity we can build, not so much the cashflow is how I am viewing it. I am a mix of emotions on this one I guess. Would you rather have a higher cashflow property that has riskier tenants/repairs, or a more hands off, less cashflow property?

Hello BP family,

My wife and I had the opportunity to look at a duplex last night. We love it and want to jump on it, but the numbers are not the typical ones I see.

Price: 250k (we live in rural Indiana)

Units: 2 (1000 SF each) 2 B 2 BA

Large lawn, built in 2004, no capex costs for atleast 5 years hopefully (roof has 10 yrs left, HVAC maybe 5)

Tenants do all the yard work.

Rent is at 850 for both sides

My question...

This is more expensive than I would have liked, but this place is so clean, maintenance is minimal, and there are 2 lifelong single lady tenants in there now, is this a good deal, even if my CoC return is so low? (7.3%)

I think this can cashflow 4k-5k a year, but the risk is very low. 

@Aaron Williams We trust eachother. Would there be a way that we can internally decide how much eachother gets? Like I said, I have more capital, so our first one will be around 30% his money, the rest mine. Im just thinking for taxes and IRS, will they care what the agreement is? If not, I would rather do one LLC and just split 50/50 in the agreement unless we internally decide differently.

Also, was taxes harder to do with a multi member LLC? I heard taxes are more complicated

My brother and I are wanting to get into flipping houses. We want to go in together on a deal, but we hear an LLC is a good idea. After hours of research, I am lost. We both have different amount of capital, and different skills. We want to make the agreement on profit a "per project" basis incase one of us has less money/time to invest in the remodel.

Should we both acquire separate LLC's and work together so we can set the terms on a project basis, or can we share the LLC and work that out there?