All Forum Posts by: Raj Kumar

Thank you all for detailed responses. 

Whats best course of action for me, leave the rentals in Scorp? 

If I have to leverage equity built in due to rental appreciation and pay off, what right way to do it?

@Jim Kennedy Thanks for  your guidance!! 

Just to add, my LLC is 50-50 partnership, me and wife, is it still the same form?

@Jim Kennedy THANK YOU!! 

So, I have to fill this form and notify Fed & State that I want my LLC be treated as LLC and not Scorp, will there be any reason I have to wait for next year or can I do it before end of year so come next year I can file 2021 taxes as LLC.

Here are the sequence of events

1. In 2019 - bought a rental property (with mortgage on my name)

2. Moved property into LLC (say LLC#1) through deed transfer

3. In year 2020, Filed LLC#1 taxes for this property

If I want to move this property into a new LLC next year, what are the steps involved and what will be tax implications on LLC#1 taxes?

Has anyone done this, please share experience.

I have few residential rental properties, for which me and my wife are on mortgage but did deed transfer to LLC. But as for filing taxes we elected as S-Corp, it's been few years we have this set up, but learned that it's not a good set up. I want to see how I can correct it, did anyone been through this path and got them corrected, what are the tax implications and what's the right way to get out of this structure and keep it simple, I'm fine just dissolving llc/scorp and just keep the properties on our name.

Please guide or provide CPA/attorney contacts who can help.

Thanks for the responses.

@Tom Mole, My goal is to have a long term steady income, but given I have about 80K equity locked in, i want to see if I'm making good returns on this, given my income/expenses, what other factors i should consider to calculate returns on this investment.

How does higher refi interest rate affect my returns and is it a good return on equity I have? House prices have been low for past several years, it took a while to reach current market value so is it good to take gains and find another property or look for other investment options or refifance at current interest rates and keep renting. 

I do not have need for capital right now, on the other hand, i have pooled about 50K for next investment, right now my focus is long term steady income with good returns.

First time post.

I purchased my property in 09/2008 - 275K. For personal reasons had to move out, and started renting 02/2012, it's now 3 yr 10 months in rental with 4 month vacancy during this period.

1. 1. Rent/month - 1850
2. 2. Current principal - 190K
3. 3. Interest rate 3% -  5/1 arm ending in 6 months
4. 4. Annual Property taxes - 3K
5. 5. Other annual expenses - (insurance, hoa etc) - 1.5K
6. 6. During this rental period paid 6K for agents to procure tenant.

Current market value 290K.

As my 5/1 ARM term is ending in 6 months, I started to look for refinance options, i checked interest rates, now it's considered investment property so rates are higher, about 4% for 15yr fixed.

Can I get some help, this property, should I refinance and keep renting or sell it, how much I'll get if I sell and pay off mortgage, what's options I have.

If I remove my wife from LLC, will that help? What options I have?

Can I change title back to my name from LLC?

Need advice on how to handle this.