All Forum Posts by: Danny Shin

@Doran Brooks, Just curious, what is your debt to income ratio, and is the debt a mortgage, student loans, or other?  It’ll help me know what to expect when I go through the same process. 

Thanks, 

Danny

@Katie L.  Bummer!  Thanks for the info.  What a way to eat into rental income returns.  I wonder how other California investors deal with this issue.  I'll post back when I learn more. 

@Sam Ferguson - seems like a reasonable cash flow, but precious little room for Capital expenditure or future vacancy allowance.  Was the purchase price around $110-120k in Arizona around Benton?  Thanks for the details!  

I'd agree with @Miguel Dormany that friend and family can be a good source of capital when you're starting out.  They're essentially like built in "relationship lenders".  The downside, of course, is that if a deal goes bad you might sour some of your most previous relationships.  

@Sam Ferguson - congrats!  Can you post details about your first deal?  Location, type of home, cost, expected cashflow?

I'm further along in age than you, but behind on real life experience.  

Are you trying to do real estate investing full time?

Best of luck,

Danny

@Ian Tan, the LLC issue seems to be one where being a California resident is a detriment.

From my reading and listening, it seems like there are a couple of ways to streamline your operation to at least minimize the financial burden of their minimum fee, such as forming 1 LLC in Nevada to be the "parent" LLC to others. I believe this option is called a "series LLC." [ @Katie L. please correct me if I'm wrong.]  However, there is seemingly no way around the minimum $800 charge for that first LLC.  Other strategies including using land trusts.

Your CPA may not be a big fan of these strategies, as the paper trail may become complex, but for those with experience dealing with investors, it likely won't be a big issue.  

Good luck,

Danny

Hello BP and Reno!

I'm heading up to Reno / Sparks, NV in a month or so, and am looking for some tips on two things:

1.  What's fun to do there that's family friendly?  I'm going to be there over a long weekend with two young boys and my wife in early August. 

2. As a young REI still looking for a market in which to invest (remotely from Southern California), what areas of Reno should I tour that might actually still produce some cash-flow as a 1-4 unit buy and hold rental? Does such a mythical area still exist in this market?

Many thanks!

Danny