All Forum Posts by: James Mays

Thanks for the reply Tony. What do you mean by RC?

Hello BP!

My question is around property insurance and specifically what are everyones MUST HAVE COVERAGES. 

I currently have a 4/2 SFH/LTR/Section 8 house under contract and I am getting quotes for property insurance. Property value ~$100,000 and will have tenet renters insurance in place.

I would love to maximize cash flow but also do not want to be left on an island if there is damage. 

Thoughts on this?

I have not besides walkthrough videos taken by the realtor. 

Hello BP Team!

I recently went under contract for a 4/2 LTR/Section 8 house with current tenet in place in Jackson, MS. Inspection report came through today. First time out of state investor. Currently have a local LTR Condo in CA and Primary SFH in CA.

________________________________________________________________________________________________________________________________________

How should I think about my counter offer/credits/repairs off of the inspection results?

I typed up the below and sent back to my realtor to start the conversation but wanted to get BPs thoughts as well. 

-Should I ask for credits to repair? 

-Should I reduce my price offering? 

-Or is this normal and I eat the repair costs? 

My message back to the realtor:

After reviewing the inspection report, here are my thoughts. I would like to have some of the results looked into further, repaired, or credits issued so that we can repair.

The below list is what I would like to be repaired or priced out to have credits issued.

Let me know what you think, thanks!

Further Evaluation (Professional based)

• Comment 2: Yard wet
• Comment 23/24/25/26/27: Electrical Work
• Comment 4/5/6/7/40: Glass repairs/sealed
• Comment 28/29/30: Hvac repairs
• Comment 49: Chimney inspected/cleaned

Repair (Handyman based)

• Comment 3: Vegetation removal
• Comment 12: Leaking hose bib
• Comment 13: Sewer cap replaced
• Comment 19: Door knob replaced
• Comment 22: Replace all batteries in smoke detectors
• Comment 38: Replace clamp in sink
• Comment 39: Replace dishwasher
• Comment 41/48: Dry wall prepare
• Comment 44/47: Door repair

Thanks Joe! Side question since you have a rental in Santa Ana. Do you have Business License from City of Santa Ana on your rental? Mine set under the below types. 

-Business Type: Residential Rental

-Ownership Type: Agricultural Cooperative Corporation

Hello BP!

I have a rental Condo in Southern California (City of Santa Ana) for 3 years now. I always get a notice to pay for the "Proactive Rental Enforcement Program" https://www.santa-ana.org/prep-program/. 

From a real estate/landlord perspective what does this do besides take money out of my pocket? Is it a tax write off? Does it benefit me at all or is it just a gov't tax money grab? 

Open conversation, thanks all!

Hello BP!

I have a question here regarding wither or not I should open LLCs and or a holding company for my upcoming scaling of my rental property portfolio. 

I have done my reading on Out of State Investing and Section 8 rentals (talked to local HUD sites).

My question is really if I am going to scale as planned what have you all seen structure wise. I know LLCs are a protection tool with no tax incentives but with those come higher insurance/fees versus staying in your name. 

Do I go get an Umbrella Policy? 

I have an MBA, sales guy, no issue with grinding admin wise but I would love to get to place in the next 2-3 years to work FOR ME not another fortune 500 :).  

Would love examples of what the pros do, Thank you!

PS: dropped a few pics of structures I saw online

Situation: 

-I am looking to scale my portfolio by utilizing out of state small-multifamily and working with Section 8 tenets. 

-Current Assets: <$100k in cash, ~$300k in retirement accounts, Primary Residence (CA) ~$100k in equity, 1 LTR condo ~$200k in equity and a HELOC @ $80k to close this week hopefully :).

Task:

-Goal: Purchase 5 properties (~10 doors) by end of 2025

Action:

-My plan is to use traditional financing under my name to access the best rates then transition to using either HELOC/DSCR/Hard Money.

-Use this route then transition all the properties to LLCs?

Hello BP!

Any recommendations on where to apply for a HELOC? I currently have a rental Condo with 232k owed but valued at 400k+ in CA.

Looking for a rehab rental properties in AR/TN and want to use a HELOC for rehab costs. Current lender is Chase and they do not offer HELOCs.

No real interest in Home Equity Loans as they are not as flexible as a line of credit.

Looking forward to the convo!

Hello Everyone,

I am looking for Credit Union/Bank recommendations in Little Rock, AR. I am looking to finance a few sub 100k properties and BRRR. I have brokers lining up some pre-approvals but wanted to see if anyone has had some local success with conventional financing or some type of rehab based loans.

Thanks for the replies!

 Hello Katie. I would like to connect, thanks!