All Forum Posts by: David Ramirez

Yes, having a property under an LLC secures you from any personal liabilities and gives you tax benefits. Not too many people now but Tampa has an STR restriction of a min of 7day stays. There are so many people that still do it without caring about Hillsborough STR laws, which is something that I would never recommend doing.

Good luck!

Regards,

David

Please share some of the tax benefits you speak of.

Hey @Terrell Garren,

Owning a property under an LLC gives you the benefit of "pass-through" taxation, which means that it allows you to pass all the income made by the LLC to your personal income tax return. That's an easy way to minimize taxes for your LLC. Another benefit would be that with an LLC you can deduct mortgage interest payment from your taxes.

Regards,

David

You do not need an LLC for the tax advantages you listed.

Hey @Terrell Garren,

Can you explain yourself?

I don't think @Tatiana Zagorovski can deduct mortgage interest with a property under her name without living in it.

0 Votes

Tampa, Florida

Quote from @Bruce Woodruff:

Quote from @David Ramirez:

In case you have to default on the property for some reason or if the LLC is found liable for wrongdoing, they can't go for your personal assets.

No I understand, I've had LLCs and S Corps for years. I get the perception that they are safer. In reality though if someone has enough money they can pierce those veils given time and money and depending what the severity of the infraction is. Same with passing through the tax savings, it isn't always the better way to take those tax liabilities on, depending on which entity carries the largest burden.

Just pointing out to the OP that it is not a automatic given for a business to just run out and get a Corp or LLC. It depends on each situation......

Hey @Bruce Woodruff,

Agree! I do the same. I have a few LLCs and I declare as an S-corp on the one that is more active. It depends on each situation. In my opinion for @Tatiana Zagorovski it would be better to put that property under an LLC instead of having it under her name because of personal liabilities. I'll always recommend discussing any decisions with a lawyer and an accountant.

0 Votes

Tampa, Florida

Quote from @Jose Fernandez:

Quote from @David Ramirez:

Hey Tatiana,

Good luck!

Regards,

David

Hi David,

How is that 7-day minimum stay calculated. If a person books 7 days and decides to leave after 4 or 5 days, is the owner of the STR penalized? Or, if a person books 7 days and shows up a day late and / or leaves a day early, then is the owner of the STR penalized? These scenarios will show the person who booked the 7 days, paid for 7 days, but they did not actually stay for 7 days.

How does the city of Tampa deal with / define those scenarios?

Hey @Jose Fernandez,

I'm not sure how the county deals with that. I have spoken with the zoning department several times because I wanted to do STR here in Tampa and they have told me that less than 7-day stays are not allowed.

Regards,

David

0 Votes

Tampa, Florida

Quote from @Terrell Garren:

Quote from @David Ramirez:

Hey Tatiana,

Good luck!

Regards,

David

Please share some of the tax benefits you speak of.

Hey @Terrell Garren,

Regards,

David

0 Votes

Tampa, Florida

Quote from @Bruce Woodruff:

Quote from @Terrell Garren:

Quote from @David Ramirez:

Hey Tatiana,

Good luck!

Regards,

David

Please share some of the tax benefits you speak of.

And address 'being secured from personal liability'...it's just another veil.....

Hey @Bruce Woodruff,

In case you have to default on the property for some reason or if the LLC is found liable for wrongdoing, they can't go for your personal assets.

Regards,

David

0 Votes

Tampa, Florida

Hey Bj Grove,

I do not have experience yet with multifamilies. I have analyzed several multifamily investment opportunities, and anything that hits the market has a cap rate of less than 5%. If you are looking for a better cap rate, you might want to consider running some marketing or contacting wholesalers that can help you get an off-market deal with a good cap rate. Here in Tampa, with that PP you can get a duplex in the south Tampa area. If you are looking for more doors with that PP, I would recommend buying near USF.

Good Luck!!

Regards,

David

1 Vote

Tampa, Florida

Hey Tatiana,

Good luck!

Regards,

David

2 Votes

Tampa, Florida

Hey Mark,

I would recommend reaching out to STR hosts and asking them for referrals. If you get yourself a good cleaning team that has experience with STR, they would make your life easier. Just in case you don't know, Hillsborough county has a 7day min restriction for short-term rentals. You might want to keep that in mind when considering where your STR is going to be.

Regards,

David

0 Votes

Tampa, Florida

Hey Matt,

Condos can definitely be very lucrative. When running the numbers for a condo, I would make sure to include a yearly increase in HOA fees. With that said, if you take all the expenses into consideration and it gives you a good cash flow, I would go for it.

Regards,

David Ramirez

1 Vote

Tampa, Florida

Hey Brandon,

I think your goals are realistic. Always take into consideration all the expenses that come with a long-term rental before you calculate your cash flow. If you use BP's calculators to purchase, you should have enough margin for any inconveniences that could arise in the future.

Best of luck!

Regards,

David

0 Votes

Tampa, Florida

All Forum Posts by: David Ramirez

David Ramirez has started 8 posts and replied 1001 times.

Post: Putting an STR into LLC

Post: Putting an STR into LLC

Post: Putting an STR into LLC

Post: Putting an STR into LLC

Post: Putting an STR into LLC

Post: Looking for our first Multifamily

Post: Putting an STR into LLC

Post: Cleaning, Yard Maintenance and Handyman References

Post: Condos on the beach/buying/renting them out

Post: I would like feedback on my investment goals