All Forum Posts by: Cody Malave

@Javier D. When you say you have a personal account which includes repairs, if you use the funds from that on repairs on any of the properties wouldn't that be considered co-mingling of funds and defeat the purpose of protection from the LLC? Do you have an accountant to keep track of all the different accounts? I can imagine it gets to difficult when spreading out so many different LLC's and properties.

@Joseph Hammel precisely the kind of response I was hoping for. I’ll have to look into this umbrella policy idea, I’ve never heard of it until I posted to this forum. I’m fortunate enough to have a decent personal debt ratio, and could be completely debt free (sans any pending properties of course) within the next year if I don’t purchase my first rental so I’m ready to dive in. 

@Ralph R. Appreciation is risky due to the market is it not? Cash flowing properties at low mortgage rates are going to be much more sustainable if the market crashes. I'd rather focus on flipping than renting if I was looking at short term gains. Back home most 3/2 SFH's or something similar are going for about 110k-130k and rent in the 1200/mo range. A majority of these homes are 40-60+ years old. Through a realtor friend I have back there, there are foreclosures going as low as 35-40k in the same area. Would that be something worth pursuing? I suppose for me the risk aversion comes from being 1800+ miles away and the age of the homes in a place with harsh winters.

@Fred Cannon I appreciate the advice. I have no interest in getting rich quickly, or really at all. I think 100k a year is a modest income while also being an achievable goal. If on average each property cash flows positive at say $300 a month, and I acquire 30 in a 15-year span, that's only two properties a year at $108,000 income. There are countless individuals who make millions in a much shorter or similar time frame, so I feel as though I'm barely grazing the surface of what some consider to be a lofty goal.  

@Fred Cannon I'm certain that we both know it's not truly passive. It's definitely about enjoying the life it offers vs. the work it requires, but I'd rather get the sweat equity in now and retire by say, 45, then just piddle along so another 30 years making minimal gains. I'm not chasing exorbitant wealth, but I do intend to live above what most consider comfortable. Anything under 100k in annual net profit doesn't feel worth chasing. 100k in 15 years, that's the starting goal. But that's a minimum.

I appreciate everyone's feedback, and I'm so grateful to be a part of this community now. 

@Luciano A. I agree with the action over analyzing aspect of the pursuit, but action without knowledge is worse than delayed action. My initial goal is definitely house hack, and because of the area I'm in, I will probably end up with an SFH and renting out individual rooms rather than getting a multi-family because the whole plex scheme doesn't really exist here. That, or they cost an absurd amount of money and don't make a lot of financial sense. I'm talking a fairly run down triplex for 300-400k with current tenants paying 800-1000 per unit.

I would love to invest out of state where the market is much better but relocating for my type of work isn't an option so I'm stuck investing here if I want to pursue the househacking option. An unfortunate but necessary evil for the time being. I lived in a highly saturated HOA. So I need to do more research on renting out rooms individually as I know most HOA's aren't a fan or don't allow that. Just trying to cover all my bases as I go.

@Chinmay J. I agree. I do need to purchase a property first, but I'm trying to do my due diligence before just hopping in. I more or less have 1-3 down, and still in search of 4. I'll be starting small but I don't want to learn small so to speak. 

First of all, I appreciate the in-depth response with your personal experience! I love hearing from others with real world advice. However, isn't the entire purpose of an LLC to protect your personal assets in their entirety? I feel as though if it's not all protected then none of it is. But again I have no experience with it, I just don’t want to learn the hard way. We live in such a sue-happy world these days that I want to be as careful as possible with such a high investment. I used to live in St. Augustine for a few years, I wonder how the market is there now. I definitely wouldn’t mind returning, I know it’s growing. Thank you again for the advice!

@Mark Beeson If you don't mind me asking, how are you acquiring additional properties? Do use HELOC's from other rentals to reinvest in new ones? I don't plan on my paying myself until I've developed enough rental income to quit my job. I figured I'd invest hard for the first several years and enjoy it fully later rather than invest slowly and enjoy it a little at a time.

@Cory Lucas I haven’t heard of rentometer before, which is surprising considering how many endless hours I’ve scoured biggerpockets and other forums for information. I’ll have to check it out, thank you! I’m going to start looking for a local realtor soon, but I hear it’s difficult to find an investor-friendly one. I’m not from this area so I’m not entirely sure how to start “shopping” for a realtor that isn’t just listed on a google search or park bench.

@Lore Postman In reference to comps, does something like the MLS have data on rental incomes? Or is it just sales/tax history for the property itself. I'm weary about sites like Zillow for accurate info because from what I've heard people say it's never even worth ballparking from because it can be so far off.

@Robert Nelson Unfamiliar with it myself.