All Forum Posts by: Account Closed

I personally am a  cash flow investor.   I also like leverage.  I'll take as much cash flow as I can get out of a deal, and not worry about the length of the note because....I'll also use OPM for as long as I possibly can (especially at today's low rates), while my own cash goes into other deals. 

A good local realtor should be able to clear that up for you.

I have a class C 23 unit building that I just purchased for 1 mil- cash flow is about 4k/mo so, no, I wouldn't be satisfied with those numbers.

...could it be that the stereotype of the landlord being sued by the scheming, opportunistic tenant is as rare as the 2 a.m. maintenance phone call (most people are sleeping at 2 a.m. and not many things spontaneously break on their own at that hour)

I've been doing the landlord thing for 30 years and have never gotten an evening maintenance call later than 8:00 that needed immediate attention.

I do it 100% of the time (always by surprise) .  It is the only true way to uncover the "true" tenant behind the ""potential" tenant that was presented to you.  Anyone unwilling or uncomfortable with this level of due diligence will get what they get, and deal with it after it's in their property .  I have turned down many "good" applicants after they failed this test.

Ron- you do not "need" to put each property in it's own LLC. I currently have 3 properties (37 doors) in 1 LLC. In theory, your total equity inside of any 1 LLC is exposed to a lawsuit that originates from inside of that LLC. It is simply up to each person's tolerance to risk to decide how much exposure is too much, and therefore the need for subsequent properties to be placed into a new LLC. As for myself, the very next property I purchase will be in a new LLC. Hope that helps.

I'm not an accountant (and I don't play one on tv) I have 37 doors all in 1 LLC, all run out of 1 LLC checking account. An LLC is a pass-thru entity where the profits pass thru to my personal tax return. I pay taxes on the profits whether I take any distributions from my account or never take a penny out. Hope that helps.

3 years (39 doors)

Hi Devon- I have 3 SFR's- one bank acct for all of the ins and outs (taxes and insurance are included in the mort.payments), and one bank acct for the security deposits. I have 3 MFR's in an LLC- one main chkng acct for all of the ins and outs, one acct for the security deposits, one acct where I self escrow taxes and insurance monthly for all of the properties, and one linked personal acct where I sweep excess cash so as to get it out of the LLC where it is more vulnerable to lawsuits from my business activities.

Bill- the only way my information would mislead anyone is if the information I was given is incorrect.  You see, my 1031 was recent and real, not theory.  My entity was one of those disregarded entities you referred to,  And my information source is my QI, from a 1031 exchange service company, such as your own.  For the purpose of this discussion and the scenario proposed by the poster, it's most likely good info.