All Forum Posts by: Craig Bauer

Thanks Kimberly. We were there last month and spent some time in that area. 

Thank you Marcella and Jeffrey. We're coming down to JAX in a few weeks to see some areas!

Hi Mina and Jasmine - thank you for your insight. I've been focused on single family and didn't have a view into the lux apartment expansions, but it all ultimately adds capacity. 

I have (4) MD properties and have been monitoring JAX and surrounding areas for a few years for investment properties first with a longer term goal as a retirement destination.  At a glance, there seems to be a large amount of unoccupied rentals on the market.  One data point is the relationship of Open Rentals vs. Population by a few Zips compared to my MD Zips.  Is JAX too saturated?

My family has been in RE rentals for a long time. But for me, it was watching hard earned equity in 2006-7 get taxed (State, Federal, AMT) in half then watching those after-tax proceeds in Fidelity PAS accounts fall nearly in half again in the global recession of 2008-9. Though that recovered by 2012, the time was lost. That woke me up.

I've never done it without seeing at least pictures of the property and having a view on floors, appliances, paint, overall maintenance, etc.  For long-distance (out-of-state) investments, I would rely on photos done by the agent or my property manager in order to estimate what would be needed.  Then would use Zillow, Redfin, others to find comps in the last 6-12 months and use that with the bank to finance out my Cash.  The bank would do their own diligence but I had at least my own view to share and negotiate with if we were too far apart on valuations.

Reply to: Marisa Alvarez

I use Allstate.  They have a "Landlord Package".  

Yes, we purchase and finance properties not using a LLC then transfer them later to a LLC. It was not expensive to setup, (e.g. ~$250). Primary purpose is asset protection though each property is under a Landlord policy and we separately have an Umbrella Policy. [READ: Belt and Suspenders]

@Daniel Volk  
Remember to look into any charges from the State to transfer the asset into a LLC and also look if there are any exemptions. Example: the state of MD charges a tax of 2.5% of assessment value to transfer the asset however there is an exemption on the first (2) properties.

I also use 10% of Gross Rent allocation for CapEx and maintenance combined. It has worked so far.