All Forum Posts by: John B Clark

In addition to what the others are saying, you also have to consider how long you plan on keeping the property for that point payoff difference. If it’s going to lower the payment enough that it makes that much of a difference for your cash flow, and you plan on keeping the property longer than that break even number, it’s probably worth it. 

Also look into series LLCs - they're not available in all states, but can be way less complicated if you're thinking of an LLC per property. What you do depends on your specific situation, though, and as others said, an umbrella policy is always a great place to start.

Quote from @Kevin Chubet:

If they are SMLLC's you can set them up yourself. Multi-member I would always go to the attorney and have an operating agreement drafted. Just make sure you register for the required state filings. As a CPA when people set up LLC's themselves I spend 1/2 the time registering for things they need. The good news if you go to the attorney is typically things are done right the first time.

And for reference for Frankie, how much do you charge, on average, to correct things for those who self filed?  Not asking for actual numbers - just giving him another frame of reference. As Bruce said, it’s just a cost of doing business.  

BP just released an article addressing the current interest rates…it’s a pretty good perspective that basically ends with, “yes”, continue to invest if the fundamentals of the investments are still good with whatever price and rate you are quoted.  Here it is: https://www.biggerpockets.com/...

From what I’ve seen and read, this seems to line up with others, but I’m curious what more experienced folks would say.

Just my 2 cents, but always use a lawyer. Too many people have been burned not filling out forms exactly as necessary, or using those online legal services. A good lawyer will ensure you're actually getting what you need because his or her name and license are on the line, and then ensure you actually know how to take advantage of that LLC without losing the protections it provides.

We use Proper Insurance. I think there are cheaper providers, but the coverage and limits are great. 

Congratulations!

Have you considered quartz? It comes in different price ranges and is pretty durable. We have it in our primary and STR and it's been great.

I’m way newer to this than the others, but in addition to the house hacking ideas the others had, or instead of if you really want to focus on STRs, have you thought of continuing in your W2 since you love it, and investing in STRs using a property manager?  You’d lose up to 25% of the income depending on the PM, but the right PM and property could be worth it for someone like you who loves his job.  You also get the benefit of possible vacation home(s).  It would take a lot longer to replace your income, but does it really matter since you love your job anyway?  And, the extra cashflow could fund additional properties, splurge type vacations, etc. if you want to continue working. 

I use a PM that manages properties in TN and Cape Cod, and is expanding to TX and another market that I’m blanking on right now. They charge 20%. 

Quote from @Chandler Salomon:

Hey guys I'm looking to find some advice on changing title on my rental from my name into a land trust. Was seeing if anyone has any experience with this. Also we're you able to draft the documents yourself or did you hire an attorney to go through the process. Thanks

 Hi Chandler, there’s a BP Rookie Podcast where they talk about how to not lose your portfolio. Brian Bradley is the guest.  I think it was from August 2021, but not sure. Give that a listen because he mentions something about land trusts not protecting people as much as many think they do (assuming your goal is asset protection).