All Forum Posts by: Carlos Ptriawan

This is the most FAQ question and I can summary here:
- Cost to setup LLC is expensive especially in CA
- You could cover it by having good liability + umbrella
- And most importantly, I can't find regular banks that's willing to lend to an LLC ( so far )

I think LLC is worthed if you want to buy apartments, but then I need to borrow money from HML which is costly (I may not be true here) . Then I go back with just SFR/MF with individual name so we can maximize 10 financed homes.

I am the same boat with @Ross Williams CoC matter the most. Second I look at reconstruction cost per-sqft in comparison to market price. For CoC what matters most is if reconstruction cost > market. I also look at the last month's top deals comps and make sure the house belongs to most top cash-flowing deals ( I remember it per city these days haha).

Tips: there's a condo complex in OKC that could generate 30% CF. I'm still scratching my head that it's possible.

My biggest mistake is making the wrong assumption :
- Assuming there's no city/county that will have property tax greater than 5 percent. In fact, a county where the house I'm purchasing has a tax rate of 10% per year!
- Assuming all referral is good including one property management in the Bay Area. I'm focusing too much on low fees. Found out they actually working remotely from the Philippines and have nobody local. Can't find a tenant after 2 months !! Keep lying to me. I know they are lying because I keep visiting the houses. It almost costs me failed to refinance deals and month's rent. After I took over the management myself, I had a tenant on the same day.

What they ask maybe a declaration of Schedule E in your tax return, a lease agreement, proof that you're not taking any forbearance due to the covid and proof of deposit/cashed cheque as rental payment proof. The refi process is just very long these days, they really want to make sure we're credible and will not apply for any mortgage relief. 

@Sarah Nelson: when you buy the unit, is it having two-unit SFR but only has one meter ?? do you know when the duplex is built? are there two doors in front? do you check old google maps and the latest one?

software engineers here in bay area.

I like looking at the numbers, SFR and MF is amazing.

Thanks a lot Daniel. Super helpful. I'm in 100% situation like your. I may PM you. My rental is also in Birmingham.

@Daniel Reeder : how close the dwelling coverage shall be to the actual market value? In case of a disaster,  if I don't want to rebuild, are they going to give a cheque that can be used to pay debt services?

Does it mean when the disaster strike, people can receive the check for dwelling coverage withoun even need to rebuild the building ?

They operated from Phillipines. Avoid at all cost.