All Forum Posts by: Kim Chhay

Thanks for your advice @Cody L.. I am considering buying it under my name based on the popular feedback I received here.

Hi @Lucia Rushton

I am putting 20% down payment and hoping to get a loan to buy it under an LLC, and then if I see another good deal, I plan on putting another 20% to buy another house under an LLC. I have over 800 credit scores and an income of $110K, and I currently have a mortgage on a house that I am currently living in. I am hoping the bank would allow me to have 2 loans on a 200K home? I don't have any debts. I plan on using the BRRR method at some point so I can continue to buy more houses from there. Then at some put all the houses under the LLC?

Thank you!

Kim

Hi,

I want to acknowledge everyone here for the great feedback!

@Joseph Vu - I plan on hiring a property manager to manage these properties in TX since I am in CA.

@Daniel Molina - Great question! My budget is to buy houses from the 150K - 200K range in a B or C neighborhood.  Maybe Dallas, San Antonio, or Houston area?  I will need to do more research.

So it looks like the advice is for me to buy the properties under my personal name first then put them under an LLC. That brings me to another question. I read that conventional mortgages contain "Due On Sale" clauses that can force a borrower to pay back the entire amount of the loan immediately when the property is sold or transferred?

Thank you!

Kim

Hello Everyone,

I am from California, and I plan on buying Single-Family Homes in Texas this year. I already formed a Texas LLC, EIN, Registered Agent, opened a business account, the whole 9 yards. I recently learned that I need to form an LLC in CA to do business in Texas. The LLC fee from CA is about $800, and the LLC in Texas is about $300. That's at least $1100 each year! After reading through these forums and videos, I see that some people do not need an LLC to purchase rental properties. My thought of having the LLC is for liability protection. My short-term goal is to buy 1-2 Single Family Homes within this year and next year. My long-term goal is to buy at least 10-15 properties or more so I can retire in 10 years. Is it worth keeping the LLCs and pay the yearly fees for both states or should I give up on the LLCs and purchase under my own name? If I go that route, I guess I could purchase Umbrella Insurance for all my properties. However, I do want to take advantage of the tax write-off for the business. What is the safest and fastest way for me to reach my goal?

I hope this all makes sense. Thanks in advance for any guidance.

Kim