All Forum Posts by: Eric Rich

I'm considering setting up my LLCs in Series and one thing I'm interested in doing is getting separate credit cards for each additional series. Can I do that or do I need everything under the parent LLC? Thank you!

I'm wondering what the best thing to do here is. I make a lot of money on my single family. I rent multiple rooms, farmland and shop space. This is also where I have my music studio and office. It's all run under the table currently and haven't had any problems, but want to formalize this as a business to avoid any hardship down the road.

I don't know how I should be protecting myself here. I would like to set up an LLC for my house, but there's not a lot of information out there on building a rental property in your house. In Salt Lake City, you don't even need a business license to rent out rooms in your own primary residence.

What are my liabilities renting without a business. I believe I should put a business in place regardless of whether or not the title is held under that LLC, but I just don't know where to begin. Any help would be greatly appreciated.

Thank you.

Weighs about 500 pounds. I've got a little video here. Couple more on that page. Enjoy!

Thanks for the feedback. your approach sounds a lot more personable and different enough to actually get potential sellers to start a conversation.

So I have a very unusual small business wherein I take out my pianobike (a piano and trike fusion)

 and busk downtown in Salt Lake City. It's a great time and pretty lucrative, but I ended up buying a home quite far from downtown and it has meant that I don't get out and play nearly as often. I thought that since I already own 2 properties, I should focus my 3rd in a very specific area where I could build out a soundproof music studio/pianobike storage in a garage in the back and rent out the house. Of course when you look downtown the home prices get much higher, however, there is a historically redlined area, that is still very close to downtown, and just because it's on the west side of the freeway and houses are less taken care of, you see homes for less.

Developers are quickly snatching up properties because of this reason and because recent zoning laws have done away with single family zoning, so I'm feeling a sense of urgency to get into a home in this very specific neighborhood.

I'm not a super personable guy and feel strange knocking on doors, so I started digging into delinquent taxes. I'm having a hard time determining where to begin on my search and what approach I should take. Both homes that I've purchases were on market deals, so I'm a bit hesitant to be the guy who calls someone up because I get those calls several times a day and I hate that using cold calls is the standard.

I don't expect to be able to use the fact that I'm a local just trying to make my business work in the market it was designed for as a leverage point because it's not helping the potential sellers at all. If you've got any advice for me I'd sure appreciate it! Also, wanted to note that I'm very good with home layout, design and executing work to fix up the house. I passed testing to become a general contractor, but don't want to work for anyone else, so buying a home that needs a remodel that I could turn into a multi-family is the ideal situation for me. I would get my license and do majority of the work myself.

I would plan to first renovate the home, and then either build a garage from the ground up, or totally renovate the existing one for my purposes. Also, is there anything illegal about me using a garage behind a rental property for my business?

Any and all feedback is much appreciated. Thank you!

Eric

I'm looking for a CPA who specialized in real estate, but who isn't a dummy when it comes to preparing taxes for other small businesses. I am a musician and would like to find someone who will work with me there as well. Prefer local, but would not mind working with the right CPA if they are out of state.

Thanks for your help.

Eric

I love this community. Thanks everyone for your thoughtful feedback.

Someone at the grocery store told me their Mom was wanting to sell their house. I inquired further and it's just down the street from where I live. The property is prime for a subdivide into 2 properties. The property is over half an acre and all clearances look good to me.

I haven't had a conversation with her yet, but she is quite old, I believe late 80's or early 90's so I assume the house is paid off. She wants to sell the house, but live in it until she dies. With her being that old, I imagine that a seller finance won't work. I am not very legitimate on paper, so I don't expect I could pull off a traditional loan. I have mortgages on 2 properties. I have $120k available to me through a HELOC and I could likely get $120k out of a HELOC on my other property. I imagine they will want around $550-$600k for the sale of their house.

I love this neighborhood and there is already rezoning taking place so I think within the next 5 years I could either build a single family on a flag lot, or tear down and built a multi family unit on it. How should I structure this deal with a sort of reverse mortgage situation built in?

@Nathan Gesner, I am considering just working hard to make some money before getting back into the market. After seeing how well my first two are doing, bringing in over $10k of total revenue, it's hard to let go and move on for awhile, but I understand the concern. 

@Will Fraser, I recently learned about DSCR and am very interested. I am not working with any broker's right now and would love help, thank you.

@Kerry Baird, yes, I wish I could refinance to a 15 or 20 year, but it is privately financed for 3.65% as an investment property, which is an unbeatable rate, especially now. And my private lender has a 10 year balloon payment. HELOC for emergency seems way better. I'm already $70k into my original $200k to consolidate the debt I took on to renovate my rental.

I'm the owner of two single family homes in Salt Lake City. I quit my job and am essentially living off of the rental income from my home (I moved into a workshop on the property and rent out 8 bedrooms and another workshop on the property). I bring in $5590/mo. on my primary residence. After I pay all the bills associated with the house and the mortgage I am now at $2,990/mo. I have a private lender on my other house with a 10 year balloon, so I'm not cash flowing on it at all, but it will be paid off in 7 years. I bring in $5,625/mo on that property. Very good assets, but both of these houses I was just really lucky on. How do I take my $130,000 HELOC and keep moving forward. I feel stuck and have in my mind that the only option going forward is paying cash for something because of the lack of W-2 work. I co-signed originally with my Dad on my original mortgage and have a private lender for my second. It doesn't look too good for conventional loans. What other loan options are out there me to look into so that I could make the most out of the liquid available to me? I would love to use as little upfront for down payments on other properties, how can I do that with my situation? Thanks for the guidance!