All Forum Posts by: Emily Poerio

Hello - 

I am new to REI and getting ready to close on my first set of properties. I have a structure that is a Master LLC and subentities that will be used if either STR or LTR. I currently have 1 Business Bank Account that is for Master LLC and stuck on best way to manage cash flow and flow of funds between account for all master expenses related to my business setup vs and also expenses/ rent related to the properties to ensure that I keep things clean, simple and easy for reporting, taxes. Do you recommend an operating business account in which I collect rent from and pay expenses if either STR or LTR entity and if master expense (ie. Car, computer,) pay out of master LLC? Also, Credit Card suggestions for best business card for benefits / perks right now?

Thanks in advance for all your insights and advice!  

Emily 

3 Tree Properties LLC

I am starting out with REI and have some basic questions on proper way to sign the Purchase Agreements as buyer. I have a Master LLC and two sub entities as intent to have STR and LTR. For starting out, assuming we will go with a conventional 30 yr where we will be personal guarantors. Do we state that the Buyer is the LLC and sign as LLC or buyer is LLC and sign as Managing member underneath LLC? I want to make sure the Deed is held in the LLC for all the protection purposes

Thanks in advance! 

Also, looking for mentor as starting out... note:  I am in Nashville but looking for deals in other markets.  This deal above is in small town in Southern Indiana 

@Nicholas L - No, I ended up terminating the contract and still searching / running numbers on various markets for next deal.   

@Melissa Nash - Yes, there are multiple reasons that I'm getting into Real Estate but with the updated picture of the ADR for the past year, the cash flow was not as good as they were indicating initially. I am looking to build portfolio of multiple properties and also benefit on the tax side as well as market appreciation.  

Appreciate the comments and dialogue!  

Interested in learning how that worked out as getting ready to purchase my first in the Smokies and with the Property Management fee, the cash flow looks to be upside down and the rates that they are also charging are lower than I would have thought in looking at the actual rental data 

Thanks for the input @Wayde Hall.  I do have a subscription to AirDNA but have not looked at pricelabs at all. I will look into.  I agree that the production seems to depend on the marketing of the property mgmt company and connections ; reviews, etc.  The property has very good reviews - all 5s but if I take over to self list, I am not sure if I can transfer of keep any of that data.  Any input you have on transferring an existing AirBNB or rental to keep within the algorithm... similarly, I would like to cross market where the existing or the property mgmt company lists to get more interest. Do you use a property mgmt company in the smokies area or recommend best / value ? 

Finally, any leads you have to off MLS opportunities coming that you have access to?

Thanks for the reply Dustin! Yes, I have subscription to AirDNA and the analysis states expected income at 63.5K.  I do have the actual rental income for the past 3 yrs at 69K, 55K, and this year 40K to date as of beginning of Aug.  It was built in 2021; purchase price 615; was planning downpayment of 25% or possibly 30% if rates better.  

I am new to investing and after a few deals that had multiple other offers that I didn't win out; I did execute a purchase agreement last weekend but doing more analysis on the property and potential rates being 7.5%, appears to be very tight to limited cash flow. I am getting into investing for a few reasons: flexibility, build diversity in investments and tax benefits. The location is great on this property (2 miles to the Island / 5 mile to Dollywood), no HOA and sq ft ~ 335 (2bd / 2.5 ba) but getting very nervous as will be first deal and would love some input here or mentor input as continue down the path of investing and learning.

Thanks in advance!!