All Forum Posts by: Donald Brinkley

I'm considering investing in a short-term rental with my sister. I currently have 4 mortgages in my name. In order to avoid any lending issues with a 5th mortgage, my sister is considering getting the mortgage in her name. We would each bring half the cash to close and I would manage the rental. This is my attempt at partnering in a deal. I'm unclear how the mortgage interest would be handled in the partnership and was looking for advice. Clearly it is still a business expense, but does it matter that the mortgage will be in her name? Is there an impact if the arrangement is a partnership vs an LLC? If there are issues is there any sort of way to avoid these issues in a deal like this?

Thanks!

Don

I visited a SFH this weekend that I think would make a good flip (still doing my diligence to ensure). Assuming that all works out though, I know I can’t swing the funds for a down payment, rehab costs, etc. myself with other things going on. I happen to mention the deal and lack of funds in passing this evening to friends and two individuals I know said they would be interested in investing. Both essentially ended the short conversation with “let me know what you’re thinking.” I’m unclear how much either party could bring to the table, but they are both individuals who wouldn’t go into REI on their own. But while I have experience rehabbing, renting properties and dealing with contractors (so I have that going), I have zero experience with having other investors onboard (clearly something they didn’t realize). So I don’t miss a good opportunity, and understanding that an agreement could be written an infinite number of ways, can anyone provide any advice on how to structure an agreement? Some basic frameworks to model for a starting place? What I should be looking to do? Mistakes I should be sure to avoid? Thanks!

@Tom Gimer  Get out of town! For whatever reason, something that simple never occurred to me.  Thanks for the suggestion.

I currently have an LLC which I used to rent a property for a couple of years that I sold last year. I have additional properties that I want to place in an LLC this year, however, the LLC name was extremely specific to the property and won't make sense for marketing these properties. So my question is, what should I do. Do I a) form a new LLC under a new more generic name and dissolve the current one or b) get a trade name/DBA for the new name under the current LLC?

I found lots of info online concerning LLC vs DBA, but nothing that considered if you already held an LLC. So wanted to get some of your opinions on the matter. Thanks in advance!

I’ve seen lots of advice that recommends to paint all rentals a single color. Which I get all the reasons why. But my question is, do you really paint the entire rental one color? Common areas, bedrooms, bathrooms, kitchen, etc? All a single color? If so, what finish and brand/color do you use? If not, how do you paint? This just seems so boring and a little off putting, but it could just be me trying to complicate and personalize the property. Thanks in advance!

I looked at the destructible that @Amy Webber referenced and it did seem shockingly (and maybe a little scary) easy. Might just be giving that a try. 

US Inspect. They aren’t the cheapest, but they are amazingly thorough.

@Anthony Dooley Yeah I think I can find a few bucks in the budget. ;)

@Matt M. Drilling was my original plan, but as capable as I am, it'll be a first for me.  Could you share how you go about doing it?  Bit size, type, location?  Thanks!

Thanks for all the advice everyone.  It makes me feel better that this is a normal problem and not a one-off kind of thing.  I already have locks ready to install the second I can get into the house after closing.  It's more a problem with getting back in to do that.  Do I just ask the listing agent really nice to drive back to the property?  Can they give the key to my agent to return maybe?  Is there any standard solution here or is it just whatever flys with the parties involved?

@Christopher Beene That sounds just like what I'm going to end up with.  They've assured me the padlock on the garage door will be removed, but I'm pretty sure I'm going to get to learn how to cut a lock off.  Good to know (maybe) that it isn't completely coming from left field at least.

@Jim Adrian That was my first fall back, but the agent has pretty much given us a "not my problem" response to that idea.  Also thought about changing the lock during the walkthrough, but my agent is thrilled with that idea since I won't actually own the property at that point.