All Forum Posts by: Derrick Lloyd

I'm a newer investor in SD, but focusing primarily on out of state buy and hold deals.  Closing on my first one in St. Louis, but we are having some issues at the end of closing.

There are a few clubs I recommend that are great for networking and learning.  The first is SDCIA San Diego Creative Investors Association which meets the 2nd tuesday in Mission Valley.

There is also the SD investment club which meets the 1st Thursday in Del Mar

There is a north county real estate investment group as well.  Not too familiar with this one, but they meet up in Oceanside towards the latter part of the month.

@Kevin Fox Which meet up do you host?

@justin 

@Justin R. thanks for the insight Justin.  The only thing that I worry about is someone coming after my equity in my primary residence and other investments.  Sounds like it might be a little overkill though.

@David Faulkner for me its the cap rates, cash flow and cost of entry.  SD is very competitive and holding for appreciation while likely taking a loss in the short term is not the strategy I am trying to pursue at the moment.

@Kathy Henley Can you attest if it is that I will have to still pay the CA LLC fee since I reside in CA?

@Cody L. Thanks for the input!  The homeowners insurance for the property has liability coverage of $300k.  Any other insurance you suggest?

I am purchasing my first property as a buy and hold in St Louis, Missouri. I live in California. I think that transferring the property to an LLC is a very good option for asset protection, especially since I own a primary residence, have retirement savings and other savings (for the next real estate deals!).

My question is which state I should form the LLC in? I am almost seeing no benefit to doing it in CA. The Missouri costs look to be $25 for name registration and $50 for submitting and possibly another fee for registering it as a foreign LLC. The CA one costs $70 to register AND has an annual fee of $800 a year (MO has no annual fee).

Am I missing anything crucial as to why I should form the LLC is CA instead of MO?

Thanks!

@Ashish Acharya thanks for the detailed reply!

@Zach Stillman Wow, good point about the summer storms, something we don't really worry about in SD.  What kind of damage did you have to deal with?

Hi all,

I recently got my first deal under contract, it is a SFR in St. Louis that will be held as a rental producing positive cash flow. I was wondering what some of the tax deductions I will be able to take are. I know that I can depreciate the value of the structure over 27.5 years. And I believe that I will be able to deduct all expenses related to the property (property management, repairs, utilities, taxes). Are there any other deductions I will be able to take? Will I be able to deduct some of the closing expenses, such as closing costs and inspections? Can I deduct the interest paid for the mortgage like I do for my primary residence?

My income is below 100k, which I think has an effect on how the deductions work.

Look forward to your answers!

Hi,

I live in a 2bd/2ba condo an currently rent a room to a friend.  I found out that he will be moving out in a couple months, so I am exploring different options of what to do for the second room.

One of the potentially most profitable options is to rent it out as a private room on AirBnb. The only issue with this is the HOA CC&Rs (essentially the rules).

I found one rule that applies to vacation rentals an says:

"....no owner shall rent, lease or let his unit for transient or hotel purposes.  Any lease or rental which is either for a period of less than 30 days or pursuant to which the lessor provides any services primarily associated with a hotel shall be deemed to be for transient or hotel purposes."

My understanding of this rule is at it applies to the entire unit not just a part of the unit.  I wanted to get some opinions on my analysis.

Hi,

So I am digging into the seller financing option since it seems like a very effective method for getting in with little money down and not having to deal with banks.

Something I am wondering about, is if the seller financing option works like a regular loan where you can refinance and just pay off the principal at any point. I know the terms of the contract can be made however the parties agree since it is an agreement between them. Does this mean that there are usually minimum amounts of payments worked in before refinance/full payout? I feel like the seller would feel ripped off if you sold them on the idea for getting constant monthly payment instead of one lump-sum for tax benefits, but a year later you refinance (maybe for the BRRR method).

Thanks!

I am getting to the point where I am ready to start building my team.  I was wondering what people look for when selecting a good RE agent to work with.  I plan I calling a few, and meeting up in person (taking them out to coffee or lunch) but not exactly what I should be asking them.