All Forum Posts by: Jonathan Bombaci

Hey Felix yeah I have all my investments properties in a LLC for this same reason. It's real simple to create a LLC and as long as it's a single member LLC it is pretty much pass through tax accounting with some added perks. That being said I am not s tax professional and if this is something you're interested in it may make sense to talk to a CPA.

Filing the paperwork for a single member LLC and getting that established is pretty simple. Just visit the state treasury website.

It's easier to buy the property in an already established the LLC than trying to transfer it after the fact.

Good Morning Munir and welcome to BP! Great goals of househacking your first property and growing to 5-10 cashflowing properties over time. I started a very similar way, I househacked a 3 family in CT about 10 years ago and it was the smartest thing I ever did. 

My advice to a newbie would be to grow a network and find your team. I can tell you already know this and are serious since your asking for help on BP.  But try to interact in person, go to a BP meetup event and find people to talk real estate with in your community. Tell everyone you know that you’re looking to buy a multi-family, you’ll be surprised how many people in your sphere invest in real estate of we’re investors at some point. Find an agent that works with investors and start the conversation. Go to the bank you have your accounts with and see what mortgage programs they have for first time home buyers. 

As you grow your team and your network real estate will become more natural.

Welcome and best of luck, real estate is a very fun and exciting ride! 

I know Keene, my dad used to live there that’s a pretty solid area. I live on the other side, near Nashua...

Investing up north is.... cheaper... much cheaper.. lol

I’d say you probably don’t need a full formal inspection since it’s such a small area and there probably aren’t any major issues lurking. That being said if you’re responsible for the heating and air conditioning and those look older it might be worth it to have a HVAC person take a look at them. It’ll be cheaper than and inspection and those are probably the only expensive things that you’re responsible  for that could be on their way out. 

Welcome Tyler. In my opinion, there is never a bad time to househack. If it saves you money every month compared to what you’re paying for rent then you’re golden. Even if the market turns I don’t think rents will decrease much. The trick is just to find the right deal in the right area. I’m not sure how big you were thinking but at 3/4 units, even in Boston’s suburbs (Saugus, Revere, Waltham, Stoneham) you can find numbers that work. Interest rates are low and who knows what the market will look like if and when there is a turn.

Real estate is a marathon, it’s better to buy and wait than wait to buy. 

If you have the LLC set up then use it. Just tell your bank you want to purchase it through the LLC and you're good. I am not a lawyer or tax expert but the LLC will give you some liability protection and under the new tax code, some tax benefits. I have all my investments properties in a LLC and operate as a realtor within a different LLC to keep them segregated from each other. Should I get sued on one side the other side of my business, and my personal assets, should be protected. Or at least harder to get at.

Since your LLC is so new, with $0 of income, you'll need to use your personal assets to guarantee the loan but just tell the bank your setting up an LLC to operate the company within for legal and tax reasons and they should be good with that. It means your pretty serious and hopefully bringing more business to them soon.

That being said the bank may want you to do a commercial loan instead of a residential loan, the key difference being interest rates are a bit higher on the commercial end. But you can buy a SF, Multi-family, condo, or really anything at all (company outings, cars, or meals w/ clients) in the LLCs name. It’s all about the intended purpose of what you’re purchasing. 

Use the rental calculator. Basically you’re evaluating the house as a SF rental purchase. It doesn’t really matter that you already own it just keep it simple and see if it would makes sense buy the property as a rental. 

Does the rent cover the mortgage? Will there be enough left over for maintenance and profit? 

If the answer is yes then go for it.

I don’t think that stereotype is true. I’d gladly rent to 2 single guys if their credit and references checked out. Just tell perspectives landlord why you’re moving and give them good references and your current landlords contact info so they can call and talk to them. 

When I rent to tenants I look at the inside of their car in the parking lot. If the cars clean I know you’ll probably keep the apartment clean. If the cars a hot mess and you don’t care then why would you take care of my property? 

You should call, it’s more personal and explain it like you did here. 

“Hi mr seller, My sister told me about your property at 123 main st. It’s next door to my sister and I’m looking to buy property. This could be perfect for me. Is it vacant? Have you thought about selling it?”

Keep it short and simple. See if he’s interested and take it from there. If he’s interested ask have he knows how much $ he would want for the property. Don’t commit to a price until you (or your sister) walks through. If he i insists on a price before showing give him a wide range. Go with something like 

“I can’t make you an offer until I see the property, you wouldnt buy a car without test driving if right. But if you want a range I think I’ll be able to offer you something between $150,000 and $200,000 depending on overall condition. Does that sound fair? “

If you can’t bring yourself to call then text, but callings better. If he doesn’t pick up then you can leave a VM or send a text. Reaching out in anyway is better than doing nothing.

Good luck!

Jon 

That’s great to hear @Jason Parker. Finding good mentors and people willing to lend support makes taking the first step less nerve racking. And your right, that’s what BP is all about. 

Are you investing in NH? Mind if I ask where? 

I’m investing in buy and hold properties northern NH (Littleton area) and just curios to hear what you’re doing.