All Forum Posts by: Dave DeMarco

@Russell Brazil @James Wise @Andrew Postell @Michael Swan

I have 5 rentals, 3 in Tennessee and 2 in Ohio. I have an LLC set up in North Carolina where I live. I paid cash for the properties and then took out equity lines to fund other deals in my name and not the LLC name. All properties are professionally managed. I would prefer to keep the properties in my name for now.

My question is this, can I have the rents that the management companies collect paid directly to the LLC even if the properties are in my name? Do I still get all the tax benefits even though the properties are in my name, not the business name and in different states?

Thanks in advance

Expert trolling triggering political rants on whatever the TV/Radio told us to be mad about today. Cries of evil socialism from those who don't realize they already live in a system with A LOT of socialist elements, and the poor being vilified as the source of our ills....

Get them distracted and fighting among themselves while we consolidate power. 

Straight out of the age old playbook used by the powers that be that is tried and true and still highly effective...

@Mike M. I would would be VERY careful in the Shaker-Buckeye neighborhood. I owned a duplex there. High crime and not worth a long term investment IMO. 

@Bryce M. Section 8 is not a bad place to start. There are people here on BP that operate a section 8 model on a large scale and do VERY well. Search the forums for some very informative threads. People get into trouble when they don't screen the tenants properly. Make sure you do so and you will be fine. I would also suggest a management company that has experience with the section 8 as that will eliminate a lot of the headache getting property approved and yearly inspections.  

You seem to know these types of tenants well. Spent a lot of time with them? Free cars? Hell, where do I sign up?

@Sophia Berry Not if your mother opens HELOC and lends you the money. You can make a purchase for cash, get a HELOC on the house you just bought and pay her back the whole amount you borrowed from her.

@Andrew Postell may have some ideas to do it another way with you on the loan with your mother.

@Michelle Shriver Just go to their website or call and open an acct for ($5 minimum) and you will be a member. Petty simple and easy.

@Jesse Chambers The HELOC remains, you get to use that 50K again.

@Jesse Chambers  It depends on your goals. How much is enough cash flow for you and your family to live the life you want to live? You have to begin with the end in mind and work from there. If you haven’t mapped out a plan, do so. That should help you decide which property is better to tap. Also use BiggerPockets for help with all questions you have. There are agents, lawyers, CPA’s and battle tested investors of all styles here. The knowledge that the members here possess cannot be understated. 

In regards to the HELOC vs refi, the HELOC is going to be much less expensive than a refi. Thousands less. You also mentioned hoarding cash for a downturn. Tapping the equity now while the market is going up or at its peak is a wise play in my opinion. You have enough equity that you can buy property in a lot of markets for cash. That is a good thing. It gives you massive bargaining power (I was getting killed by cash buyers when I first started out) and it allows you to take out another HELOC on the property purchased and pay the original HELOC back. Buying this way also eliminates seasoning issues you may bump into also. With some refi's lenders want you to have owned the property for 6-12 months before they will lend to you which can slow your growth (forgive me if I'm stating things you already know). If you have purchased correctly, which you clearly have based on your current holdings, you will have 20-30% equity in a cash flowing, appreciating asset and have cash you can tap over and over again. Again, depends on your style and what your goals are.

BOTH ways work just fine based on your equity position. 

I’m truly excited for you and feel free to PM me 

@Ricky Nigro Where exactly is this property? Lived in Cleveland for 20+ years and worked in these "rough" neighborhoods. $65,000 in Cleveland in a rough (east side) neighborhood is WAY to high. Initial eyeball test tells me you should pump the breaks. I went down this road with my 2nd property that I paid WAY less for. I made a bunch of money on that duplex - and gave it all back with turnover and break ins.

Send an address or zip code.