All Forum Posts by: Greg Kasmer

Paige - I would check to see if she's had any evictions and/or judgements against her. Depending what state you're in there may be an app/website to go to and review. In PA there is an easy app that can help provide information. I would also call the property management company and understand her rental background. I use and outside company to screen and it's typically only $45 for me per person and I ask the applicant to pay the fee. Message me if you want to know more about my process. Good Luck!

Zac - I'm not an attorney, so take my thoughts as just that - my thoughts from my experience in which I've had a single member LLC and a two member LLC. I think you asking two different questions. A single member LLC you can be considered a disregarded entity and therefore have it roll up to your personal taxes without a separate filing. If you have two members of the LLC then I believe you would have to file a separate business tax return and then have the income flow over to your personal return via a K-1. That would add costs to your tax return. I don't think either is "more protective" than the other. As for your ownership of the duplex.... If you already have title and loan into both your personal names then you'll need to change title and loan to the LLC (irrespective if the LLC is a single member or two member LLC). I don't think it will be any "harder" or "easier" changing title/loan into the LLC from a mechanical standpoint, but the lender might be more willing/able if the same people were in the LLC as the original loan. I would contact the lender first and get their opinion. Good Luck!

@Dave Rav - I agree with the others that there is no really good way to estimate insurance costs, but I've found some consistency within a particular market/zip code if the rebuild costs and deductibles are the same. However, you have to get several quotes in a particular market until you see a similar enough pattern. Personally, I'm also seeing a wide range of quotes now from different carriers. I got a quote on a 12 unit where one carrier was $900 per unit and another was $500 per unit with very similar coverage. I would get several quotes! Good Luck!

Erwin - There are many thoughts/perspectives on this topic... I would first read several books on property management (Brandon Turner from Bigger Pockets has one of the best!)
The Book on Managing Rental Properties | Book for Landlords – BiggerPockets Bookstore
and then consider your options. If you're 50/50 on whether to do it, I would encourage you to self-manage your first few rentals and then when it becomes too much of a time commitment turn it over to 3rd party management. By self-managing first you'll be a lot more knowledgeable and a better client when you do turn it over to a 3rd party company. Good Luck!

Billy and Cliff - I have a few business lines of credit in an LLC, but they were built over time. A few things I've learned are: 1) Banks/Credit Unions like to see 2+ years in business at a minimum, 2) In addition to your FICO score, they also like to see business revenues via tax returns, 3) They sometimes build their credit decision off of a % of your business revenues (i.e. They will offer 20% of your revenues in a HELOC), 4) Some banks are more "business friendly" than others, so call as many as you can to find the right ones. Right now, I have a LOC with Wells Fargo, PNC, and Key Bank, but hoping to add more. Good Luck!

Rafael - I would just go ahead and ask the lender you're thinking about using for the cash-out refinance. They should be able to guide you through the benefits of each scenario... just tell them you're thinking about living in the quad or potentially just renting out all four units. Also, how you're holding title (LLC or own name) may matter as to how they review the financing. My estimate would be that in a house hack you would be slightly better terms on the loan. (i.e. maybe .25-.5% better interest rate and perhaps a 30 year Amortization instead of a 25 year Amortization).

Aaron - I invest in the Philadelphia suburbs and it would be great to connect. Message me and let me know what days/times work!

Chris - Did you approach the seller about seller financing in any capacity? If he's retiring maybe he'd still like cashflow without the headaches of owning. If you already explored that option I would reach out to a regional credit union that holds their own loans in their portfolio. They might be able to do one loan with multiple properties. Problem is they may require a higher down payment. Good Luck!

Dan - Congrats! Do you ever come across any multifamily properties?

Brittany - Would you be willing to share more about your focus? Are you looking for residential or commercial investing? I think the mentorship question is a good one to ask, but you want to make sure you have the right type of mentor for your goals. Personally, I've had a coach on the residential side as well as multifamily side - both of which have been very helpful in my investing. If you're still thinking about your goals I would suggest to absorb as much content as you can and have a conversation with as many real estate investors (25+) as you can to understand their background and their specific pros/cons of investing. Other suggestions I would have is to listen to podcasts, attend some local real estate REIA meetings as well as Meet Ups. I think this will give you broad enough exposure to begin to hone in on your focus. I'm happy to discuss with you, but wanted to give you some ideas to start!