All Forum Posts by: John M.

I just got my first LLC made for my future rental properties.
Can anyone give me a high level 'most important' things to know about using an LLC?

For example, I know I now need to:
1. Get a checking account under the LLC name.
2. Sign any contract/insurance using the LLC name.

Anything else to be aware of?

That's what I needed to know. Thanks!

When creating an LLC, do most people use their primary residence(where you yourself sleep) as the principal office address?

I'm going to have a lawyer set it up. I was wondering if I could use their address, or if I have to use mine. I just don't want renters looking me up and stopping by.

Thanks

I'm curious what everyone does to protect themselves from lawsuit when investing in rental properties.
I see that just about everyone does an LLC, but looking around on the internet, I also see people talking about things like: Irrevocable trusts, living trusts, and doing your LLC in states like Nevada, Delaware or Wyoming where the laws favor LLC owners.

Does anyone here do anything beyond just an LLC + Umbrella Insurance?
Any advise/recommendations?

Awesome replies! This gives me a lot to think about. Thanks everyone.
One of the take-aways I'm reading into all of the replies is that there's no 'never invest in lower class areas' rule. I was wondering if there's the 1% rule, the 50% rule and the lower class rule, but there's not.
It seems like what I'm seeing in the higher return in lower class areas is normal, and is kind of the market adjusting for the higher headache. The question becomes, is that higher return worth it for you.

If anyone else has more to add, I would love to hear it. I still haven't made up my mind.

It seems like the worse the neighborhood, the more the rental profit.
For example, in a bad neighborhood, I can buy a $45,000 house that rents for ~$850/month.
In a good neighborhood, I can buy a $100,000 house that rents for $1,000.
If I hired a property management company to manage the property in the bad area, that takes the $850 down to maybe $750 which still means I'm making 40% more in bad areas.

Curious what peoples opinions are of investing in good areas with less return vs less nice areas with better return.

Does anyone find good deals with HUD homes?
I'm new, but so far it seems like they never stay on market long enough for an investor to be allowed to bid on them.

Another thing to consider is that right now interest rates are at lifetime lows. What happens when they revert to average? More potential home owners won't be able to afford houses, thus more renters. You could make the case we have 20 years of easy renting ahead.