All Forum Posts by: Isaac K.

Good Morning All,

Finally am able to buy my first home. I am planning for house hacking and want to rent out my 2nd floor rooms and live in the basement. I was look

Good Morning All,

Finally am able to buy my first home. I am planning for house hacking and want to rent out my 2nd floor rooms and live in the basement. I was looking to see if there is any room renting agreement in google but failed to see any good one other then some very generic online tools. Any advise?

@Jerry W. Thanks. Didn't know that. The strategy is WY LLC will be acting as a holding company for other foreign LLCs but not holding anything in WY.

@Steve Vaughan Thanks. That's really a great KISS :)

@Ozzy Sirimsi Thanks. Yes, you are right about lots of dreams; But I only have 1 life, so trying to go as far as I can. At least in my deathbed I cans ay I tried best of my ability :) 

@Basit Siddiqi WY LCC has only $50 filing fee, so low yearly maintenance, better single member asset protection. Other states probably have zero annual filing fees like Arizona or others but don't have better single member LLC protection. NV has better single member LLC but then annual filing fees are are sky high like DE.

@Basit Siddiqi From liability side my attorney advise was wither S-corp or LLC for asset protection. Holding LLC may be treated will be partnership 1065 as it is earning from sub LLCs. My understanding is Whollyowned LLC will generate K-1 which will be attached to my 1040 and it will not show up in page one of schedule E but in page two-line entry in tax filing which may hit my personal income tax level which will phase out (tax break) at near future. If I keep investing buying one property every year that structure will hit my income tax level.

S-corp- As disregarded/partnership 1065 will hit net investment income tax rate of 3.8% if my whole family ( me+my spouse+other current & future rentals)  gross $250K annually or if my all income is over $200k. But also if I start investing in commercial or mobile home park, in future I want to sell as disregarded then those commercial can't show income to future buyer which will give him hard time to acquire loans from a bank as bank can't verify income from those commercials. In that case, S-corp is good. But then from those properties, I can't take losses or depreciation to offset my other incomes?

Both S-corp and LLC provides asset protection so I am looking for CPA.

@Carl Fischer Thank you for the advice. Will look into it.

@Peter Schuyler Thank you for the suggestion. Will do. 

@James E. Am following Brandon and his youtube. Strategies are good but don't know how to take advantages of it legally so need someone to guide me in initial set up. I heard in his BP YOUTUBE that he doesn't have time to talk to the clients just time for coffee or lunch. But will approach him anyway to see if that what he meant.