All Forum Posts by: Cody Malave

@John Teachout How do you protect yourself from a liability standpoint if something were to go wrong? Don't your personal assets (other properties, personal vehicles, etc.) become at risk during a lawsuit if something were to happen sans entity?

@Brandon Hicks I suppose I definitely need to speak with a tax professional, because I have so many questions. However, I appreciate everyone's insight and experiences. It's been very helpful! This is a great community. 

@Ryan Deasy Do you have individual LLC's for each property? I wouldn't plan on paying myself until I had developed enough income for it to make sense. But I wasn't sure how investing personal money into the LLC (startup) worked. Especially if you're using say a HELOC from one rental to use as a down payment to acquire another/others. I feel like every question that gets answered causes me to come up with two more!

@Cameron Tope I appreciate the information! I haven't actually acquired any properties yet.. just trying to cover all my bases before I jump in. I plan on househacking in the beginning to have a lower initial capital investment but I wasn't sure how that worked liability wise, particularly if I was doing it in an SFH instead of a multi. I suppose talking to an accountant would be my best bet?

Perhaps this isn't the right place to ask this, but in the most innocent way possible I am curious as to how people who have quit their jobs in order to pursue investing as a full time gig make money. Basically anything I've read states that you have to keep your money separate from the properties or any personal assets can become a liability and at a risk of loss. If you are creating an LLC for your investments, how does one (eventually) use the income made on investments as personal finance without blending the two? If not operating or investing under an LLC, how do you prevent your personal assets from the risk of potential lawsuits?

I am interested in house-hacking as an entry into the real estate world, with a specific interest of buy-and-hold rentals. Something I am curious about that I seem to be unable to find any adequate information on is determining rental estimates for multi-family property units that have either no prior rental history or little-to-no comps in the surrounding area. I could also be interested in househacking an SFH and renting out individual rooms, but again I am unsure how to estimate rental values for individual rooms as opposed to renting it as a single unit. Any suggestions or advice on where to look?

I mostly agree with the other posts that it is probably unwise as a long term investment. However, when I first moved to Florida in my early 20s, I lived in such a place. The house was a 4/1 SFU, where individuals each rented their own rooms that had individual locks. We all shared one kitchen, one bath, and paid weekly. While certainly far from ideal, it actually went very well. The other tenants and I all got along, even with ages ranging from early 20s to late 50s. There was some small turnover in the three months I was there, but it was very hassle-free, at least from what I saw. However, I can definitely foresee the issues that have all been mentioned here. 

Hey all, Cody Malave here. Originally from an as-small-as-it-gets town in the woods of Maine, I've knocked out 37 of the 50 states in the last 6 years. Primarily in Florida, where I'm currently located, I've been scouring the internet for what feels like an eternity for anything and everything real estate related. I'm more than ready to dive into the market and start investing in properties, I'm just not sure where to begin. With so many different routes and possibilities to choose from, it's difficult to know where to begin. I don't plan on staying in Florida in the long run so out-of-state investing doesn't scare me. From what I've seen, house hacking seems to be one of the better ways to get a taste for both landlording and investing. I'm open to any and all advice that comes my way and would love to hear those with similar beginnings who are now experienced. 

Thank you in advance, and I'm excited to finally become part of the BP community!