All Forum Posts by: Jason Dobbins

I setup an LLC for each property, yes i am the member of each LLC but if someone sues you and you have all these properties in one basket (LLC) they are all accessible to a lawsuit. Sure they can spend a lot of time and money going after other LLC's i am a member of but chances they will not. I carry a high liability coverage on all of my properties I highly doubt they would waste their time.

I don't get why you wouldn't form an LLC for each is $100, costs $50 a year after in my state at least. Its simple to do then just have a property lawyer do a quite claim deed to change to your new formed LLC which is another $500 if that.

Also good to mention i require tenants to carry a $500k liability policy

Their distribution centers are typically automated and running with very few employees, i read that they are implementing boxing robots to replace more people.  most stuff gets moved around the warehouse by robots already.  I would highly doubt that they have more than 1000 people working I would imagine if this is a new development it would have the latest and greatest of automation and have even fewer employees.  

Do you have a Landlord Meter on the property?  I have one on my property that runs exterior lights in the common area and the furnace.  If you do its should be fairly easy to have that outlet moved over to the Landlord meter.  Your other option is have a Landlord Meter installed but that could get pretty expensive.

Your only other option is to ask to see her electric bill then figure out roughly what the washer and dryer electric would cost should be able to roughly estimate it, then reduce her rent by that number.

My property had this issue where the oil furnace was running on one units electric but i was lucky i had a separate elextrical box just had to get a meter installed, then have those items moved over to the new electrical box it only cost me $100 to get done.  The electric for all of my common area stuff is about $18 a month

If you are limited on cash the best way i know of is to look for a 2 unit multi family and do owner occupied.  You can then qualify for a 3% down mortgage and being owner occupied it will be a better interest rate.  Once you find the property you want negotiate the deal with cash from the seller at closing which will cover your closing costs and part of the 3%.  Check with the lender on what the Cash at Close limit is last i know it was 6% of the purchase price.

Then live in this property for 2 years (I think that is the requirement) then repeat this process again.

I would look at doing the Pay or Quit notice if your not looking to kick them out maybe give them notice that their outstanding balance is going to start incurring 15% interest and that you expect $200 per month to be paid toward this balance.  

I think the key is not letting it get to this point in the future.  The agreement has terms for late rent which include late fees and consequences while it sucks to have to do it its your investment that needs to be making you money 

I say do both, I don't think adding another SFH to your portfolio will create that much extra work. I also have a few REIT's in my 401k you should look at IIPR very interesting REIT pays a good dividend

I think the issue is Your looking at a estimate BP provides for interior painting but your having a lot more done than just quick wall clean up and a coat of paint.  I do all of my own painting on my units, If i am doing ceilings i tape off the floor completely and use a paint sprayer for the ceiling, then i spray all the trim and roll all the walls.  I just did a 2 bed 2 bath that is 1600sqft and for sherwin williams paint I can tell you between walls, trim, and ceiling i probably paid $800-$1000 in supplies and paint alone (not including the sprayer already owned that).  For 2 coats I am guessing 10 gallons of wall paint.

I would just suggest having the quote broken up so you know what your paying for what.  

Looks great

@Rob Ritter Getting into rentals is a good investment I wish i would have started earlier at your age.  Are you looking at a multi family or renting out single family homes?  For me i went with a 3 family building, I have it setup so any 1 of the tenants could move out and i am break even while i get a new tenant in, this really helps to not have to worry about putting cash into support the mortgage.  I would start by talking to a lender to see what your options are as you might want to move into the new purchase as owner occupied and rent your current home which will help with how much you have to put down.  Either way a lender will give you a baseline of what you need to do and what you can afford so you can start looking at what deals make sense.  

Then really its doing your homework on where the market is and what rents are going for so you can use the BP calculator as mentioned above to see if a property makes sense or not

The loan is just a simple low interest loan with a family member.  I know the IRS side of things and it needs to be a structured agreement and above 1.84% to not be considered a gift.  I was just curious if anyone had a way to get a loan agreement done without involving a lawyer.