All Forum Posts by: Mike Tamulevich

Hi, Michael.

Doing adequate research for the market you intend to serve is crucial. Not only do you want to understand the housing market for that area, you also want to understand the people; Making connections is a big part of the deal. I always tell people that when I got started in the industry, I expected future-me to always look back on the amazing deals I was able to close. While that's true, what I truly remember is the people we were able to help. From helping a widowed mother get a fresh start for her and her kids, to the MILLIONS of dollars in assistance we acquired for residents to stay current during covid... The real estate journey is so much more than you could ever imagine!

Don't feel pressured to move to a huge city in order to be successful. In fact, suburbs are growing massively year after year. As long as you have the knowledge, drive, and a great/qualified team to work with, you can find success in most places. The markets what you make it!

I wish you the best of luck, Michael. If you ever want to chat more, send me a message!

Welcome to Bigger Pockets, @Kevin Lopez! Despite being in the SFR game for well over 10 years, I'm still a rookie on this website myself.

Houston is one of the BEST locations in the country for real estate investing. As long as you find yourself a solid team with the experience, knowledge, and credentials, you'll find that there are many opportunities available. If you have any questions or want to talk the Houston market, send a message! 

Welcome to BP, and I wish you the best of luck.

For a commercial loan at 7% over 15 years, you can use an online loan calculator to estimate your monthly payments. A good option is Bankrate’s Loan Calculator. Just input the loan amount, interest rate, and term to clearly understand your costs. Remember, while these loans are based on potential income from the property, your employment and personal income will still be factors in the lender's decision.

Regarding switching the property to an LLC for liability protection, a quitclaim deed can transfer ownership, but it's important to check with your mortgage company first. They may have specific requirements for such a transfer to ensure you comply with your loan agreement.

If you have any more questions, feel free to ask!

Great questions! Let me break them down for you:

Purchasing a Property through Your LLC:
Yes, you can definitely purchase properties under your LLC, and it's actually a common strategy for investors looking to grow their portfolio. The key difference is that when buying as an LLC, you won't typically qualify for traditional FHA or conventional mortgages. Instead, you'd likely look at commercial loans or portfolio loans. These loans are based more on the property's income potential rather than your personal financials, though your personal credit might still play a role, especially if your LLC is newer. Keep in mind that these loans can come with slightly higher interest rates and shorter terms, but they do allow you to keep your investment separate from your personal finances.

Switching the Property to Your LLC:
Transferring the property to your LLC can be beneficial for a couple of reasons. First, it offers liability protection—keeping your personal assets separate from your business assets. Second, it can help when it comes to future investments, as building a strong rental portfolio under your LLC can make it easier to secure loans for future purchases. However, before making the switch, it’s important to check with your current lender. Transferring a property with an existing mortgage to your LLC can sometimes trigger a “due-on-sale” clause, which could require you to pay off the loan immediately.

If you're thinking about expanding your rental portfolio, switching to an LLC could give you more flexibility and protection as you grow. If you want more personalized advice or help managing your properties, feel free to reach out—we'd love to help!

With interest rates climbing, we've definitely had to adjust how we approach funding strategies. Many investors are feeling the squeeze from traditional lenders, so it's no surprise that more are turning to private money lenders to access capital faster. Private lenders are becoming a go-to option because they’re able to close deals quickly without all the hoops that banks make you jump through. Sure, the rates might be a bit higher, but for investors who need to move fast—especially in this market—the flexibility is worth it.

Another trend we’ve seen is a shift in focus from appreciation to cash flow. Investors are being more cautious and looking for properties that can generate strong rental income right away to help cover the higher financing costs. Some are even getting creative with their deals, using strategies like seller financing or joint ventures to reduce their dependence on traditional loans.

It’s definitely a challenging environment, but with the right strategy, there are still plenty of opportunities out there.

Landlords are generally not allowed to turn off utilities, even if the tenant is overstaying their lease or hasn't paid for utilities. Doing so could be considered a form of illegal eviction or "self-help eviction," which is prohibited by law. Landlords must follow the proper legal eviction process, even if the tenant is no longer paying rent or utilities.

Since your "friend" has already initiated the eviction process and is waiting for the sheriff to remove the tenant, it's important to let that process play out legally. While it’s frustrating that the tenant is still there and not paying, turning off utilities could complicate the situation and potentially lead to legal consequences for your "friend".

In the meantime, document everything (the tenant’s non-payment, the lease terms regarding utilities, and their attempts to resolve the issue) to present in court, which may help recover the outstanding balance later. Once the sheriff completes the eviction, they can regain possession and ensure the tenant vacates.

It's always a good idea to consult with a local attorney to make sure they are fully compliant with Pennsylvania’s landlord-tenant laws.

Hi, Bob! Marketplace Homes can help you out. We are a real estate and property management company based out of Detroit, and we have years of experience with investors purchasing section 8 homes, especially in the Detroit area. Sending you a connection!

Hi, Christine!

It’s great that you’re being proactive about this! As an Ohio real estate agent, you do need to be careful, as drafting legal documents like lease agreements can be considered the unauthorized practice of law, which could put your future license at risk. However, when it comes to your own personal property, you're generally allowed to draft agreements for that. The concern arises when you're acting as an agent for others—there, the law is stricter.

Since you plan to use the agreement for future properties too, it might be worth getting legal guidance upfront, even though the $1000 fee sounds steep. Having an attorney review and refine the lease agreement now could save you from potential issues down the road. Plus, if you continue to acquire more properties, you’ll have a solid, legally sound lease to use without having to worry about your license being in jeopardy.

Good luck with your new venture!

Hi, Courtney!

To market your long-term rental effectively, start by listing it on popular sites like Zillow Rental Manager, Apartments.com, and Realtor.com. Make sure your listing is SEO optimized with the right keywords to attract more renters—many property management companies can help with this, along with tenant screening and payment management. Don’t forget to use professional photography and consider virtual staging if the home is vacant. Also, a freshly cleaned and nice-smelling home makes a great first impression! Working with a property management company can make the whole process easier and more efficient.

Good luck!

That's great to hear! Feel free to send a message if you'd like to be added to our free Property Management newsletter. You'll get bi-weekly advice, tips, and tricks that may be helpful even before you're ready for the next step.