All Forum Posts by: Casey R.

What's your buy criteria?

@Katie L.

That's unfortunately what I was thinking too after doing some more homework. What about a Revocable Trust? I'm trying to figure out if I can close in the name of the trust and then just assign the rights as trustee to the buyer. Or, just close in the trust and sell through and then revoke the trust to dissolve it. This is just a one time transaction solution I'm trying close and not use my name. Not for any ill intent, just for common sense liability, the property is pretty rough but the buyer is a seasoned contractor who's done this a million times. I don't anticipate any problems If I have to, I'll create an LLC and pay the 800 after close, just didn't want to have that cost out there if they back out.

I have a CA resi wholesale deal. Need to go to contract and don't have an entity set up. I want to avoid the 800 extortion fee since this is just a single deal and I'm not regularly operating in CA. I'm a CA resident but I'm looking out of state. This CA deal just makes sense so I need to double close it and don't want to do it in my name. I don't have time to register as a foreign entity if I set up an LLC in another state. Any ideas on the cheapest quickest way to be protected in the deal? Currently it looks like I can set up an LLC in CA within a few days and then I'm going to have to pay the 800 annual even if the entity only exists for a couple weeks. I did see something online about avoiding the 800 with an S election of the LLC but I haven't found anything to corroborate that yet.

Talk with your tax person to see if mortgage deduction on a 4 plex is a better deal than renting in socal and spending capital in midwest on rental. Cost benefit analysis. 203k is FHA so you have MI addl cost but also you only need about 5% roughly to buy it. I would bet 4plex 203k (refi later to get out of lifetime MI) would be better if you plan to stay in one location for at least a few years. technically, I think you have to live in it 12 months, look into current regs, you might be able to rinse and repeat annually. I've been out of the biz for a while so I don't know what's new in last few years.

I'm in Tahoe, let me know if I can assist. If you're targeting cashflow, as I am, you might consider small apartments or 4 plexes in the midwest and south where ROI is better. If you're brave enough to flip in SoCal I know there's a lot of those guys on BP. I used to live in Denver, the market is silly there currently. Maybe your Aurora houses could 1031 into an apartment building to reduce vacancy exposure and increase cashflow over time. Remember to vet property managers thoroughly, they're the ones watching your money/property if you're not local, they'll make or break you. Contact the local REIAs in whatever area you're in and looking at because there's a wealth of local knowledge there for you. If you're not opposed to living the apartment lifestyle since you're still young enough to tolerate it :), you might look at a 203k loan to rehab a tired 4 plex wherever you decide to live. SoCal pricing is high so maybe the number work better on a primary residence rehab hack on a 4 plex. I was realtor for years, now working in financial advisory so I'm a bit out of the loop. Best Wishes.

Carson is a bedroom community for Tahoe and Reno now, with the pricing being overheated people are willing to drive until they qualify. I think Carson is ok now, not as hillbilly as it was 30 years ago (still a time warp though). they're doing a facelift downtown, the freeway is in, etc. I prefer Tahoe, I lived in Reno, Carson, Minden over the years and the daily afternoon winds coming down into the valley just make it miserable (for me). west side in the trees was the only house I had that wasn't miserable in the wind because it had the charm of rustling trees but out in the valley it's treeless and annoying. if its just for investment and you wont have to live in the wind there are still deals if you hunt. a friend of mind found a great deal inn the Ranchos, easily fit into 70%arv model which was surprising in this market.

Reno Real Estate Investors Club has a knowledgeable core group and some very seasoned people who show up semi regularly. Good source to start with for what you're wanting.  I'm in South shore, but know several vets in the group from my brokerage days.

If you need a solid broker in South Lake Tahoe I know several who have been here for decades and know the nuances of the local regulators, it's a different world here. 

Im in South Tahoe. Whats your goal for the purchase? personal place to use and rent out the rest of the time? purely rental, not too much personal use? I would talk to agencies on south shore too, your pruce points in Incline are much higher than south shore or other points around the lake, I dont know that your rssoective rental rate and  booking density would justify it. Also, ask agencies what square footage performs best. I have a friend who manages 4 and he says he'll never take on a house under 4000 sf because its the same headaches for less revenue on the smaller homes.

Also, read up on VHR Vacation Home Rental recent debates and developments, it's a hot issue currently, not sure what's on the horizen for each jurisdiction around the lake. 

Interview multiple agencies, it's way too labor intensive to do effectively from afar. A good agency will eat 20-30% of gross but it'll be booked, cleaned and turned much more than if you do it solo.