All Forum Posts by: Joshua McMillion

@Jared Sandler

I'm interested in meeting up two. Just moved to the area and live in Madison. 

Thanks 

Josh 

@Peter McDonough

Yes, the mortgage note is a qualified mortgage. The current mortgage I plan to transfer into an LLC within the next two-four years (once I move) is a VA loan. Since it is a VA loan, I have to occupy the property for at least 12 months as my primary residence. After that, I can transfer to an LLC when I make it an investment property.

Thanks again for the CPA reference. I plan on contacting them this week and will give you a shout out. 

Sincerely 

Josh

@Peter McDonough

Thank you for the reference! I spoke with my lender, and they do not use a Due-on-sale clause. That being said, I like the peace of mind the LLC provides over other insurance options, like an umbrella cover. There is still a level of risk associated with the LLC, but I see the potential for tax advantages as a better trade-off. If I purchase the investment property as a residential loan, I could transfer the title with my name into the LLC. I will still be fully obligated on the mortgage. Also, the LLC will not have an established income and credit history. I would need to provide a signed personal guarantee that I will pay the mortgage if the LLC cannot.

Sincerely Joshua

BiggerPockets Family, 

I am looking for a CPA that can grow with my family. If you know a qualified person, please let me know. They must have experience with real estate and military tax strategies and preferably invest themselves. I am also looking for my first LLC in 2021 and would like to find a CPA to help with the process. My wife and I will use a legal agency to form the licensing agreement, but having a CPA with knowledge would be great.

Thanks! 

Sincerely Josh

@Carolina Davis 

Late to the game on this chat, but I am highly interested in your strategy. My family and I will be moving to the Huntsville area and just purchased our second SFH. We will be living in this home until we move but plan on renting the property once we leave. I am also actively doing a REHAB project on the home (from a long distance!) and am excited about the possible ARV. My wife and I are actively saving for our third property and plan to sell our first home within the next two years as a tool to scale. Our three-year goal is to purchase three investment properties in the larger Huntsville area.

Also, great article and cool little free software tool to show national and specific state listings! 

Sincerely Joshua 

I'm moving to Huntsville in December and would love to connect. My wife and I are planning to purchase more homes in the future. We currently have one SFH in Madison.

sincerely 
Josh

Hello, 

I have recently updated my exit strategies for my first property. When I ran the numbers, I am projected to have high ROE by 2022-2023. I am interested in building two townhomes (3B/2BA/2car garage) in my targeted area of investment. I like the townhome split because it has utilities completely split. Also, this approach allows me to scale faster. Because I used a VA loan, I would have almost no money upfront in my investment.

I am assuming I can sell my home and purchase this new construction without paying capital gains taxes because it was a VA loan, and I have held the property for two years, in the last five years, as a primary residence. Is this assumption, right?

Primary Questions: 

Can you hold one mortgage on a side-by-side townhome (I'm thinking this is essentially a duplex) if you purchase two? 

Is my assumption right of not paying capital gains tax? 

Any recommendations for pursuing new construction? 

Being in the military, you have a distinct advantage of seeing great markets and purchasing homes with no money down through the VA loan. One downside I see is if each property is usually in different states and will require an LLC or legal entity to be formed. As my family and I move, we will purchase a second home use the house hack method. Once we are ready to move, I will form an LLC.

I understand there are two ways of forming one, which is either through a forming company or legal (more expensive). Does anyone have experience on this topic and willing to share your knowledge? I want to form a legal entity that allows multiple LLC's in states to reside under it and offer inside and outside protection. For example, Wyoming is a domicile LLC that is manager ran with anonymity, and other legal entities are member ran that all fall under the domicile LLC.

The goal is to have one K-1 tax form, which I plan to find a CPA at that point that will grow with our portfolio. Has anyone done this? What companies are best? Are you willing to meet and discuss (local if you live in Monterey, CA, or through Zoom)? Thank you!

Sincerely

Joshua

Luke,

That podcast is what got my curiosity, and I am also an avid reader. Thank you all, and I will start looking through the forums!

Josh

Hello!

I am looking to increase my knowledge of short term rentals. Would anyone have a favorite book recommendation they are willing to share?

Thank you!

Josh