All Forum Posts by: Christopher Helwig

Assuming we are about to see significant inflation, now is a good time to be leveraged.  As inflation goes up, so too will your property values and rent.  While at the same time the value of the loan you have to pay back goes down.  Taking out a loan and investing it well is a bit like shorting the value of the dollar.

I own 4 rental properties. Two are in my name and two are owned through an LLC. The mortgage holder for the two I own in my name will not let me change ownership to the LLC. In order to keep the liability protection on the homes owned through the LLC, I need to maintain "separate identities" between myself and my LLC. for simplicity sake, I would like to deposit all the rents into the LLC bank account. Would this cause a court to see myself and the LLC as essentially the same entity? To pay the mortgages for the homes I own in my name would I have to transfer the money to my personal account and then pay it form there? Do other people have properties in their own name and in an LLC? How do you handle it? Thanks in advance for any help/advice.

Many homes in this area were built between 1950 and 1980.  Some common issues can be asbestos siding, galvanized steel pipes at the end of there life under a concrete slab foundation, roofs that do not have ties connecting the trusses/rafters to the walls (for hurricanes), oh yeah and termites.  Not sure what they are like up north, but they are pretty bad down here.

Thanks for the help.  I really appreciate it.

I am having trouble understanding the relationship between various metrics used to analyse a rental property.  I had the impression that if a rental property cash flowed well it would have a good cash on cash return.  But a potential duplex has me scratching my head.....  

The asking price is $94,900 and each side rents out for $695/mo./unit or $1390/mo. so the gross annual income is $16,680. (monthly expenses: debt service $385, tax $83, insurance $166, maintenance and cap x $139, vacancy $70) After expenses I calculate it would net $547/mo. or $273.50/mo/unit, which seems very good, right? Based on the monthly net income, the NOI would be $6,564. So, if you put 20% down on $94,900 that is $18,980. Than gives you a cash on cash return of 7.97%, which is really not good.

So, am I doing the math wrong or is it possible to have a good cash flow with a bad cash on cash return, and if so what does that mean?

Thanks for the help.

  

I live in lakeland, FL and have been watching multi-family for about 6 months. It is very competitive. Any half way decent deal usually gets snatched up in a week or less. You might have better luck with "C" properties or distressed properties.  That is where I have been looking lately. Good luck