All Forum Posts by: Chris Coleman

@Jon Schoeller I'm saying it will be a bit easier to refinance and you'll get better interest rates if it's in your personal name rather than an LLC, because you'll be able to get conventional financing in your name rather than having to get a commercial loan under an LLC.

@Jason Hulin

Interestingly enough, I find that the @ feature usually works on my phone, but not so well on my computer.

@Jon Schoeller

Congratulations on the purchase!

Since it’s only a 4-unit, it is not considered commercial and therefore you can still get a conventional loan. This will be easier and provide better interest rates when you go to refinance.

Regarding insurance, an umbrella policy is what you want. For property/hazard insurance, a broker should be able to quote you the minimum replacement coverage. This will be required for the Refi loan.

As far as managing the property yourself, you need to determine whether your goal is to be a real estate investor or a landlord. If you really want to be an investor, then focus on doing deals and hopefully growing your portfolio, and hire a great property manager to do what they do best.

@Jared McCullough

Income from rental real estate is not subject to Self Employment tax, therefore an LLC is generally fine for buy-and-hold. Since this is the case, I'm not really sure how S-Corp status would benefit you in a strictly buy-and-hold rental model.

@Rachel Bier

Ask your Closing Agent. In preparing all the documents for the sell, the Closing Agent will generally have the title transferred back into your name. At Closing, they will have the funds for paying off the mortgage sent directly to the lender.

@Jai Hill

What is your cash flow if you rent it?

If you sell it and make about $40K-$50K, could you invest that profit to make a higher cash flow?

Also, assuming you’ve owned it for less than a year, keep in mind having to pay short-term capital gains if you sell.

@Andrew Bonar

Welcome! BiggerPockets is definitely the BEST place to start, learn, and begin connecting.

Have you attended any Meetups in your area? I’ve found them to be great for making connections and building relationships.

There’s a Multifamily Masters group in Indianapolis you may want to check out.

https://www.meetup.com/Indianapolis-Apartment-Investing-Meetup/events/mrmlmrybccbbc/

@Ryan Miller

@Alina Trigub is very experience in assisted living. She may be able to help you here.

@Megan W.

You need someone with signing authority at his company to sign the Lease, such as their COO, General Counsel, CFO, HR, or such. And probably an Addendum to the Lease stating that the company takes responsibility for any damages, etc, due to their employees.

Also, make sure to get a contact person at the company who will be responsible for paying the rent. That way you can call them directly if there are ever any payment issues.

@Robin Morales educate, educate, educate!  Before you jump in and start a purchase, take time to learn all you can.  Here on BiggerPockets is a great, and probably the best place to start.  Read the Forum posts, read the Blogs, listen to podcasts, YouTube, and spend a little time just soaking up knowledge and other peoples' experience (and mistakes).

Commit to studying a little every day and I assure you that in no time, by the end of this month, you will know a lot more than you do know and feel much more confident.

Then you take your first step by asking yourself, what type of real estate investing do you want to start with? Single-family buy and hold, BRRRR method, fix and flip, turnkey, multifamily, mobile homes, etc??? Do enough studying and learning that you can answer that question for yourself. Then move on to the next step.