All Forum Posts by: Greg Kasmer

Charlie - If you start an LLC as a single-member LLC the profits and losses will flow through your personal income tax return without filing a business tax return. If you have two or more members of the LLC you'll file a business return and then have those financial flow over to your personal return via K-1. "Separation" may not be possible, but I'd like to think of an LLC as an "extra layer" of protection, although you're not completely isolated from risk... just makes it harder for others. Good Luck!

Congratulations Roy! How are you going to scale your future investments? Do you have short-term capital to continue to invest in your next deal? 

 "Real Estate By The Numbers" is a great book by J. Scott from Bigger Pockets on analyzing properties.... Also, if you're interested in multifamily I like the "Multifamily Millionaire Vol. 1 & II" by Bigger Pockets Publishing as well. Good Luck!

Candy - Is your current rental in your name or the name of an LLC? If it's in your name you can look into the potential for a HELOC or potentially refinance to pull out some of the equity you've created, but you'll need to do the math to see if you're payments will increase based on the new loan terms. The other option I potentially see is to partner with someone that has cash and/or better debt/income ratios and partner on the next purchase. Good Luck!

Matt - Congratulation on your deal! Do you have a way to secure more off-market deals? 

Joe - I would suggest you consider the following:

- Google "REIAs" in your local areas.

- Search Meet Up App to see what meetings/meet ups are nearby.

- Post on craigslist asking about networking with other real estate investors. 

- I would search Bigger Pockets for members in VT and ask them their thoughts.

Greg

@Hai Le - I have a quadraplex with a single water meter and I was unable to find a system that shows water usage by unit. If I find one, I'll let you know!

@Vhernadette Sasing - Based on your current income (after tax) you may need $20-30k in monthly cash flow. If you get about $100 per door in cash flow you'll need about 200-300 units, assuming you'll own 100% of the equity of those units. To reach that goal it might take longer than you think... I would do a few BRRR deals (SFR or small multis) and then re-assess your situation. You'll be able to see what is going well, what is not, and more importantly what you like to do and not like to do in real estate. Ultimately you may need to scale with a partner or two in order to obtain that many doors in the longer term, but before you partner it would benefit to do some deals yourself and gain experience. Also, depending upon how aggressive you want to grow hiring a mentor/coach would also be beneficial. Good Luck!

Kyle - If you're looking for specific ways to educate yourself on rehab costs, I would suggest you consider some of the following:

1) Read J. Scott's book on estimating rehab costs. Estimates are probably a bit outdated now, but consider it a starting point and maybe add 20-30% to the estimates. 

The Book on Estimating Rehab Costs | Fix-and-Flip Investing Book – BiggerPockets Bookstore

2) Go to REIA meetings and specifically look for "Rehab Subgroups" or "Rehabber Meetups" that you can attend. In Philadelphia I know that DIG (Diversified Investors Group) and DPI (Delco Property Investors) are both local REIAs that I believe have subgroups in on rehabbing. I also think SJREIA has one as well.

3) Find an investor (maybe at a REIA) and ask him/her to walk through their existing rehab/flip and inquire about prices while you're touring. I know that REIAs also often give tours on a schedule weekend session a few times a year.

4) Put together a rehab budget for a project in excel for an example (or actual) house and post in the forums asking for local investor feedback. You'll want to notate level of finishes, etc... but you'll get feedback.

I'm local to Philadelphia, so if you'd like to talk more, let me know. Good Luck!

@Larry Nielsen - I like the strategy Jonathan Greene outlined to provide good, updated information to tenants on the market rents. That gives great context to the tenant. I bought a quad this year and had my property management company do a similar thing, but the only wrinkle was 2 tenants moved out and a 3rd was about to, so instead we negotiated "two stepping" the rent increase with the third tenant. A $200 increase now and then another $150 increase in 6 months. I didn't want to have three vacant units at once, so I tried that approach with the 3rd tenant. I'm in the processing of renovating the two units from the people that did move out. Good Luk!