All Forum Posts by: David C.

@John Teachout maintenance and repairs are starting to kick in and my trusted hvac guy agrees that at 20 years old it could go anytime. He’s told me in the past to not replace others, so i take his word. Chicago winter approaching I don’t want to get a call from tenant at 2am and spend on callout / parts / labor. Also, got good tenant who is cool with an install while they are home, so don’t have to get it done between tenants later on. Learnt my lesson from trying to make washer/drier last - cost me over half what it costo to buy brand new.

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@Eamonn McElroy

Yes, simple single member llc for starting out beyond my 1 rental (previous primary home). Thank you! Appreciate swift response. Ill just get the hvac replaced then. 👍🏼

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Quick help needed. Thanks in advance.

My HVAC on my 1 rental is due for an upgrade and I've got a date tentatively booked. But I'm also progressing to set up an LLC and transfer this rental into that.

For tax deductions, am I better off waiting until it's an expense for the LLC or does it not really matter because I can access the same tax deductions on my personal tax return?

CPA not yet signed up so stuck for professional advice on this.

GO AHEAD or WAIT?

Tnx

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Originally posted by @Federico Gutierrez:

2.75% FIXED! That's cheap. Makes it hard to sell with that low of an interest rate

It's Chicago, turn it into an AIR BNB and you might see better cash returns depending on where it's located

Yeh, I locked in that 2.75% when i had the chance few years back when it was my primary residence. Cash-refi (now as rental), or selling to buy another rental would give this up (currently around 4.5% on 30 fixed) Hence why this isn't easy decision.

The condo would make a great AirBnB - it's in the hip Wicker Park neighborhood, but the HOA/condo association is strict and impossible to do sneakily - only being 8 condos, 6 of which owner-occupied, all very vigilant.

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Originally posted by @Michael Plaks:

@David C. -

there're several threads on BiggerPockets discussing Anderson - just do a search.

And your neighbor @Steven Hamilton II is probably a better choice if you're looking for a REI tax planning specialist

Thanks - already set up a call with Steven. good to see another endorsement for him. tnx

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15 months ago we moved out of 3-bed/2-bath condo in Chicago to a 4-bed house. Rented the condo out rather than sold, but now I'm wondering if the potential cash in it can be working harder as I look towards building a cash-flowing portfolio of REI with long-term ROI/appreciation as focus on buy/hold rentals out of state - probably turnkey SFR in TX, OK, OH, FL, AL at first.

Should I sell, stick, cash-out-refinance?

(I do have enough cash to make 2-3 purchases without this, but thinking ahead for financing after that)

_______

Property value: $525,000 (bought for 495k in 2015)

Renting for 3600/month

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Mortgage Payment (Principal and Interest): $2361.60/month

Property Tax: 651/month

HOA: 299/month

Property Management: 0

Occupancy: 4% / Tenant Placement: 1 month rent.

_____

Loan Principal Owing: $286,000

3 years into 15yr fixed-rate loan @ 2.75%

_____

Ideas, thoughts, considerations, links to articles and calcuilators most welcomed. Thank you!

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Hi Ed, I'm also looking at these. Did you get anywhere? Any experience you can share? thanks!

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As I prepare to build small ‘test and learn' portfolio of SFH turnkeys in different states with different companies, where should my CPA and my Attorney be?

Would prefer option to meet in person for services and advice (live in Chicago) but will they have the right knowledge and licenses to suit out of state investing?

If not an issue, any recommendations please?

Thanks

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@Justin Wotring

In a similar situation. Have my 401k maxed, back door Roth, maxing the 529 college funds thing, previously just putting the rest in mutual funds with Betterment. Want to diversify into REI. Got excited about the BRRRR - the ‘getting all your original investment out in a refi' part and using it to repeat. BUT, im doing 8-10 hr days in a well paid job. Can hardly find time to research and find deals, let alone find rockstar team, renovate etc.

So currently exploring turnkey REI. Still needs due diligence, analysis, learning and networking for finance, legal things like LLC...but manageable from a desk. Speaking with a few to get a feel. But lots of talk of syndication deals on this thread. Not explored. Anyone got any links for where to start with that?

Good luck Justin. Let’s connect and share stories- interesred to see which path you choose

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Originally posted by @Michael Facchini:

@David C. - I hear ya, an investment property or two on the side can almost be a full-time job. Hard to find time, but it's worth it in the end. Just take your time compiling intel...you'll get there eventually.

So, when I was referring to the value of being close and keeping it local, having established & trusted circles, familiarity with the areas, etc., that all helps when sourcing the property, ensuring a successful/smooth transaction, and of course for renovations...but even with turn-key properties to your point above, there is a big value to being local when owning/managing. I manage my own properties. Property managers, generally speaking (no offense to the few good ones out there, which there are), are not going to do as good of a job as I, nor protect my bottom-line as well as I will. But I do this for a living. Someone who wants more of an arm-chair investment needs a property manager. Even then though, I want to be able to get to the property once per month or so...or when bigger items pop up. No one protects my dollar better than me, no matter how good the property manager. Nor could I expect them to for 5-10%. With my businesses and my properties, I want full visibility - and that is hard to achieve when "off-site" (IE, many miles away). But again, this is take on things after many bumps and bruises.

i hear ya. I'm definitely taking time to come to terms with that reality. I'd love to manage my own properties and be hands-on through the process - all my friends successful in REI are that way too, but it's their FT job they got into early on. But my job (exec at ad agency) is intense and unpredictable. So I either find a job that i can flex more to the part time property job (which would mean reskilling myself and taking big cut in salary) or get into it the turnkey way at first and perhaps slowly transition later on as my conditions change and confidence and knowledge grows. My best cashflow over the next 5-10 years will always be my W2 job - I'm not doing REI to get rich quick, so I can sacrifice cashflow in the short term for the sake of equity and appreciation over the long term. My objective is an earlier, better retirement income than I can probably expect from my current approach consisting of 401k, funds, stocks and shares - all of which I'll still have but looking for diversity, and maybe a semi-retirement interest/income 15-20 years from now.

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All Forum Posts by: David C.

David C. has started 9 posts and replied 39 times.

Post: Delay new HVAC until LLC (for tax reasons)?

Post: Delay new HVAC until LLC (for tax reasons)?

Post: Delay new HVAC until LLC (for tax reasons)?

Post: Sell [to make cash work harder elsewhere] or not ?

Post: KKOS Lawyers and Anderson Business Advisors - Recommendation?

Post: Sell [to make cash work harder elsewhere] or not ?

Post: KKOS Lawyers and Anderson Business Advisors - Recommendation?

Post: Attorney and CPA selection for out of state REI

Post: What would you do with $200k?

Post: Locations to focus on for newbie BRRRR with cash.