All Forum Posts by: Michael G.

This forum is probably NOT where you should spend a lot of your time as a beginner. Or any other forum for that matter. Forums are by their very nature noisy, opinionated, and ultimately a distraction to what you need first - an education.

Education does not need to be slow or expensive. Forget the guru bootcamps and their 3 or 4 figure events and product packages. Start with some plain old fashioned books and read and take notes at the same time. Physical or ebooks - it doesn't matter. Annotate and make your notes in a notepad or other document as you read. Highlight the concepts or phrases that speak most loudly to you. Jot down the questions as they pop in your head, and any other ideas too. You will get the maximum value from any books, articles, podcasts or videos this way.

Need a book list? Skim the podcast transcripts here to find the recommendations of podcast guests, and you will find quite a few that come up over and over again. Buy some books - new or used from this site, Amazon or eBay. You will be building library of trusted advisers this way - and at very low cost. 

Soon it will seem less daunting, the way forward more clear. Where you start depends on your own interests and circumstances and its OK to change direction as you learn gain actual experience. Learn, then DO. Learn from what you did, then DO some more. Action feeds action and education provides direction.

I am wanting to acquire numerous SFR properties under $30k during the next 12 months, and wondering how best to use my own cash and or finance. This would be for between 4 and 6 properties with a total value 140k to 200k.

Should I:

[A] purchase each with 100% cash, then allow my ownership to "season" for 6 to 12 months, then apply for a portfolio loan to cover them all under a single mortgage?

[B] apply for mortgages on each property as I acquire them?

[C] some other approach?

I want to stretch my cash as far as possible, yet still get the lowest practical financing cost for this number of low end, high yield properties. I have cash, and 800+ credit rating, and except for a primary residence have no other property, debt or mortgages.

Who else has done this? Any tips or suggestions? Thanks in advance.

Solid asset protection will require segration of assets and multiple entitites, independently of any insurance protection. At the very least, rentals must be in seperate entity from flips due to different tax treatment, and ideally each property should be in a seperately entity to ensure your exposure is limited to that single property. 

A typical structure would be a holding LLC that contains your other property LLCs plus your management LLC and development LLC. Series LLC may make the process a little easier, but that is very dependent on your state law. Each LLC will require it's own bank account less you risk losing your protection.

Asset protection through insurance alone is very high risk.

Read on and off this site, see a lawyer who SPECIALIZES in this in your state, and be prepared for complexity.

I am an out of town landlord with a soon to be vacant SFR in South Knoxville. Seeking recommendations for a dependable property management company in the area. Tell me who is good, and who is not. Thanks in advance.

I am an absentee landlord needing recommendations for a good contractor for general home maintenance in Knoxville, TN. 

After a truly awful experience with so-called professional management, I am managing the property myself from the other side of the state and need a reliable locally based person in South Knoxville, TN.

Any suggestions and experiences appreciated.

I have a court judgement against a former tenant for unpaid rent and damages. How do I include this in my tax return if at all? I assume I can only claim for the assessed damages portion, as I have yet to complete full replacement of damaged items. I seem to recall reading that that even if I cannot collect the debt, which is very likely, that at some time in the future when I forgive the un-collectible debt, it will be recorded as an income against her by the IRS. I have been unable to find my notes on this and wondered if anyone else may be able to clarify the tax implications.