All Forum Posts by: Jonathan Schell

@Timothy Daniels Good points. And yes, the 20k net is for 6 units. How does that qualify me for a FHA loan?

The current owner is claiming $20k net annually. I ran the numbers and came up with the same.

I have identified the properties I want. They are fully occupied with paying tenants. I have asked for two years of financials to substantiate the claim. What other type of documentation should I ask for? Is there any public record I should have pulled?

I have enough capital to put down 20%, but I'd rather not. How can I dodge this? I can squeeze the 20% down payment out of my primary residence equity, but I'm not sure if this is allowed in conjunction with a traditional mortgage. 

I am unsure of what type of entity to create. The LLC is kind of a poor mans go-to, but I don't know that I want a pass-through because of my personal income level. I would also prefer to not actually spend the money I'm making off these properties. The money should remain as part of the entity and as untaxed as possible. I could use some advice here.

A local property management company charges 6% to handle advertising, screening, contracts, collection and evictions. I work 40-80 hours a week on a rotating day/night/afternoon schedule. Until I can break free from servitude, I'm very likely going to need a property management company. A 6% fee sounds good to me, but is it?

I bought my first house seven years ago and have managed to neither burn it down nor have it foreclosed on. =)

Jon Schell here. I'm a military vet currently working in the electric utility industry. I've been eyeing up rental properties for a few years and doing some light reading on matters of Landlordship. Ultimately, I'm looking for increased cash flow and, eventually, financial independence.