All Forum Posts by: Diane Tycangco

Hello everyone, I was thinking of putting my property up for Sec 8 housing in Memphis, TN.  I was wondering if any of you have had experience dealing with Sec 8 tenants in Memphis and also experience dealing with the Sec 8 organization itself.

Do the tenants trash your property?  Is it easy to find a good Sec 8 tenant?  Is Sec 8 easy to deal with and do they pay the rent promptly?

Any ideas would be appreciated.

Thanks!

Actually, they put in actual rent to expect as $2700 for a 1 bedroom in Sacramento which I think is absurd. 

Thanks for your input guys! 

Hello everyone, I just came from an ADU fair in Sacramento and the presenters were saying that ADUs rent for more money than apartments or multifamily. Is this true?

They said don't base your numbers on Rentometer.  They said to go to Zillow, remove apartments from your filters and put in the # of bedrooms. 

Personally, I wouldn't pay more to rent an ADU vs an apartment.

Their example was for a 1b1b standard quality 400-750 sq ft ADU costing $200k would rent for $2700!

What have you guys experienced?  I am skeptical. 

Thanks!

Supposedly for asset protection purposes. 

Hello everyone, has anyone used a business trust to hold rentals instead of an LLC because California charges a yearly FTB fee of $800 whether or not your LLC was formed in California? Or maybe a Tennessee Asset Protection Trust? I have talked to a couple of lenders and they have told me that if I transfer the property into an irrevocable trust, it would trigger a due on sale clause.

Have any of you encountered this and how did you avoid the due on sale clause? 

Also, how did you get a mortgage when buying a rental in a business trust or asset protection trust? 

Does transferring your real estate in an asset protection trust trigger property tax reassessment?

Is it harder/more expensive to get insurance in a business trust or asset protection trust? 

Thanks! 

Hi Brian, i think the Private Asset Retirement Trust is what I have been looking for!  I am a California resident but am planning to sell my California rentals and buying out of state rentals.  If I have the California Private Retirement Trust, can I buy and sell real estate any time I want?  Can I do 1031 exchanges with assets in the trust?  Can I get distributions from the trust even if I am not retired or partially retired?  Is there a limit as to the amount and frequency of distribution and can a creditor grab your distribution from you? Does it have charging order protection? 

Thank you!

Wow!  Thanks for the quick reply!  So selling price minus selling costs minus payment of loan balance = cash that is left.  Can I use the cash that is left to pay for closing costs of the new property aside from the down payment?  Would that count as a valid 1031 exchange? Or am I required to use the cash that is left only for the downpayment and the buying costs will be incluede in the new loan?  Sorry to be repetitive.

Does the no cap gains tax only apply to federal but I still to pay California capital gains state tax?

Thanks! 

Hello everyone, I am thinking about doing a 1031 exchange.  How do I calculate how much I should invest in the new property?  Do I get the sale proceeds, subtract loan balance payment, the closing costs of buying the property I sold and selling costs = the downpayment plus closing costs of the new property?  Or is it just sales proceeds minus loans and then I have to come up with cash for the closing costs of the new property? Thanks! 

Hello everyone, I was told by an attorney that the corporate veil of a single member LLC is easier to pierce and thus has less asset protection and charging order protection than a multi-member LLC. That's why he told me to have an LLC with me as one member and an irrevocable trust as a 1% member. This irrevocable trust would then have a charity as the beneficiary because I don't want family members to have anything to do with my properties/business entities.

Is it true that a single member LLCs have less asset & charging order protection?  Is this type of arrangement the right approach for me to have asset & charging order protection for me and my properties?

To save on taxes, should the LLC be taxed as a partnership, S or C corporation? It would hold rental properties and I have a W2 job, I am single with no dependents.

Thank you so much!