All Forum Posts by: Johnny Weekend

I live in California however own an investment property in Ohio. I may end up paying Ohio state tax in the profit from the investment property (even with depreciation and expenses). Would it be worthwhile to contribute to an Ohio 529 plan to get credit towads ohio state taxes generated by the investment property?

California doesn't provide tax exemptions for 529, so would I still have to pay taxes in California on the income that was exempt in Ohio?

would this only work if the property is in my name, what if I later transfer it to a trust or LLC?

0 Votes

I am reading Gary Keller's book the millionaire real estate investor. He says to "buy it right" you should buy 20% below market value...sounds great but where does some find that?

He also assumes expenses are 40% of rents which is a little wishful if needed a property manager.

throughs?

0 Votes

Originally posted by @Steve Vaughan:

Originally posted by @Ed Zhao:

Currently I had ten rentals in bay area California, most being duplexes and fourplexes. I had a $5M umbrella policy to protect myself. About a year ago, I was suggested to set up LLcs to separate them...

It is so costly to up keep these llcs. Not only need to pay $800 each for taxes, insurance also goes up so much because now under business name. Accountant also charged $1000 each LLC tax returns.

First, congrats on owning so much Bay area property. You've been buying a long time I bet.

Thank you for highlighting some costs with holding residential assets inside commercial enterprises. Insurance co's don't know how to handle that, so they up premiums. Tax reporting costs, annual renewal fees, legal fees to establish and maintain...

Hopefully you didn't transfer with quitclaim deeds. Hopefully you didn't have mortgages on them. Title chain damage and lender DOS risk are a couple additional 'benefits' of FEAR (false evidence appearing real) transfers cause.

Personally, I have a large umbrella policy for my residential property and hold commercial assets inside LLCs from day 1 . No shady transfers one day all the sudden. YMMV, but thank you for highlighting some problems drinking the AP LLC kool-aid causes.

How are you able to get loans for the property if they go into an LLC right away?

0 Votes

Originally posted by @Ed Zhao:

Currently I had ten rentals in bay area California, most being duplexes and fourplexes. In the past, I hold these rentals under my name. I had a $5M umbrella policy to protect myself, at least that is what I think. However, about a year ago, I was suggested to set up LLcs to separate them so I can have a better protection. I divided them into three different parts which about equal values, I then group them into three different LLCs. In the hope that something happen I don't have to lose all. Sounds like a good idea, but here is the painful part, It is so costly to up keep these llcs. Not only need to pay $800 each for taxes, insurance also goes up so much because now under business name. Accountant also charged $1000 each LLC tax returns. As you can tell, it adds up a lot. I am sure there are many people own many rentals, how are you holding them? Is holding in different llc is the only way or there are some other ways work better? Thank you all in advance to enlight me .

This seems like a good solution but I don't know how many people are doing it.

https://royallegalsolutions.co...

1 Vote

A few suggestions to achieve anonymity is to buy in your name and then transfer into a land trust. However if someone were you pull up the records they will see the history and note that the prior owner was you (before the land trust). How do you achieve the anonymity?

0 Votes

Just wondering if anyone used Equity Resources in Ohio.

rates sound a little too good.

0 Votes

Originally posted by @Brett Tvenge:

@Johnny Weekend is this a primary residence loan or investment rate?

Sorry. Forget investment property o

loan.

0 Votes

Hi everyone,

I am trying to see if this rate is decent or if someone has recommendations for lenders.

75k purchase price in Ohio on single family house

Checked with 5/3 bank:

20% down = 4.75% with 1.5 points. Fixed 30 years

25% down = 4.62% with 3/8 points. Fixed 30 years.

Seems decent but wondering if anyone else has a recommendation for a lender.

Thank you!

0 Votes

The rented being paid is pretty high, 90th percentile probably for such a property. So in the future a new tenant would need to be found who similarly doesn't have many housing options and is willing to pay the higher rent. That's a concern.

0 Votes

All Forum Posts by: Johnny Weekend

Johnny Weekend has started 16 posts and replied 37 times.

Post: Current investment property rates

Post: Contribute to 529 plan to offset state taxes on rental property?

Post: Gary Keller "buy it right" ... but where to find?

Post: Any other ways besides LLC to hold titles?

Post: Any other ways besides LLC to hold titles?

Post: Buy in your name -> land trust, but isn't your name still listed?

Post: Anyone unit Equity Resources mortgage broker?

Post: 4.75% loan on SFH with 20% down, good or can do better?

Post: 4.75% loan on SFH with 20% down, good or can do better?

Post: Property rented to prior convicts