All Forum Posts by: Jona Leu

@Gus Ross Thanks for the information. Just an assumption, if I lower down the price, what do you think it might be the time to transfer to the realtor? ex. less than 3 interests a week...etc. 

I am a first time landlord and would highly appreciate your suggestions.

My condo's monthly asking rent is $2,100, which is located in a convenient and popular rental area (average rental rate is $1,000). However, I tried to not use realtor and posted my list on Zillow, Trulia, Hotpad, Craiglist, Cozy...etc. I only received 2 interest for the past week. My page views on Zillow of the condo is always the lead from the past week and now I am not too confident that if I am on the right track. Here are my options:

1. Find a realtor, and pay the first month commission. Pros is they will handle all the potential tenants and help me take care of showing and rest of the things. But the commission will lower down my average monthly income to $1925. And there might have some rent negotiation from the tenant before signing the Lease.

2. Lower down the price to $2,050. But I am worry that the people who can afford this price will go directly to a realtor. I am not sure if I keep waiting, there are no more potential tenant will show up.

I have to start my lease on 6/1 so I still have sufficient time to look for someone but just want to make a right path for now. 

My current tenant paid $2,000. I used a realtor to find them 9 months ago. The market seems even better now so $2,000 to $2,100 didn't seem too bad of a starting point.

Do you see a difference in how tenants shop between a $1,000/month unit vs a $2,000+/month unit? I'm worried higher end buyers don't use DIY sites like craigslist. Thanks.

@Casey Kooiman I remembered you will have to talk to your creditor who you're paying the mortgage to. Just do some search and you will understand it more. 

https://www.biggerpockets.com/forums/311/topics/18...

@Jeff Rabinowitz I will be the sole owner of LLC if I create one. Just wondering how do you manage that much or properties with reliable insurance? Have you ever experienced the case that tenants would like to sue you?

@Wade Sikkink So talk to the attorney first would be the best way than talk to accountant? Since both of them might spend some money out of my pocket before I start to have actual rental income. I agreed that to better spend some money to do the thing right from the beginning, but just would like to seek some suggestions from BP to see if attorney and accountant are necessary at this point.

Moreover, it might be a little out of the topic. I read from somewhere mentioned that the liability might still pass along to the personal from LLC if we can know who is the owner of LLC. Is this true? I also wonder the answer what @Gloria Mirza mentioned too.

@Andrew Halbert Thanks for the suggestions, since it will be my first time to jump into a "big" business, I am pretty nervous and would like to sort all the answers out. But you are right, it is a learning curve, I will actually gain actual knowledge when I am in the business. 

I will definitely check out legalzoom, however, would you suggest to be my own landlord to save the property management cost? I tended to find someone to manage the property but some said it won't be that hard to manage for one.

@Rivers Plowden not sure if I understood your last sentence right, do you mean LLC might spend more money but will provide more protection in court?

Thanks.

Hello BP,

I am new to the real estate investing and would like to create some fortune by rental out my property as side income. Currently I am living in a condo which I've already paid mortgage for around 1 ½ year. I am preparing to move out in next couple months and would like to rent it out, however, in order to invest more rental properties in the future, I am deciding if I want to create a LLC before I start to rent out the property. I am in Michigan, as I know the registration fee for LLC is $50 and $25 each year to keep it good standing (please correct me if I am wrong). And I have some options:

1.Create a LLC, and transfer the property under LLC and then rent out. Issue I would face:

• Should I transfer my mortgage to LLC too? If so, how can I pay the monthly mortgage with LLC since the beginning balance will be zero? Or I can deposit my personal money as emergency fund/capital just in case the condo will be idle for couple months?
• When is the best time to look for an accountant? Can accountant help me to create LLC or I can personally apply online and seek for advice for operating LLC?
• I used to file the tax return by TurboTax, from my understanding that LLC can be able to file with personal tax return, do I really need an accountant?
• Would you suggest me to do the LLC bookkeeping my own? What kind of software you would suggest? I have a bachelor degree in accounting so hope the knowledge can help me save some money. I am not CPA since I changed my career to other field lol.

2.Rent out the property, and then create and transfer the property title under LLC.

• Will it be more complicated than option 1 for the transfer process (paperwork, cost, time, risk…etc.)? Vice versa?

3.No need to create LLC, buy umbrella policy up to 1 million.

• Would 1 million policy sufficient for only one condo?

Any suggestions would be greatly appreciated! I will keep research the real estate investing in BP and hope to learn more knowledge and be able to invest the second property soon! :)