All Forum Posts by: Krystin Aversa

@Zeke Liston

Hi Zeke, thank you for your input! When you say to buy an OOS investment that will pay for my rent, are you referring to the rent on the OOS property? I would likely need to own multiple (over 10, if cash flowing ~ 300/month) OOS properties to be able to cover my rent in the Bay Area. I have heard a lot of great things regarding both cash flow and appreciation in the Columbus, OH market; my dilemma is whether or not to pursue that first and continue to pay over 30k/year in rent for an apartment here while I invest OOS, or to purchase a property here and delay my OOS inverting for a bit while I regain the capital.

@Nicola Rutherford

Thank you so much for the referral and insight! Looking forward to connecting with Christine to explore my options in this area

@Remington Lyman

Hi Remington, I’ve heard a lot of great things about the Columbus, OH market. I noted in your description you started your real estate portfolio through a house hack. Do you think this is a good strategy for me to implement as well, since I am currently paying 3k/month in rent and essentially receiving no added benefit/equity/appreciation for this, or are you suggesting I continue renting indefinitely while I am in the Bay Area and begin my real estate portfolio through OOS investing in a market like Columbus?

@Nicola Rutherford

Hi Nicola!! Your insight and perspective is much appreciated. It’s particularly helpful to hear the personal experience (and success!) of someone in a similar situation. I share in your sentiment regarding the 30k/year going to someone else’s pocket, and that is really driving my desire to start local and, like you said, continue to pursue OOS investing after. With the numbers you mentioned I could actually resume pursuing OOS investing much sooner after purchasing a property here in the Bay Area. I will def expand my search to the areas you suggested. Did you work with an agent who you would be able to refer? I know a great agent can be all the difference in finding the right property. Thank you so much for sharing your experience, it really has been incredibly helpful and motivating. And congratulations on your home!

@Jon Schwartz

Hi Jon, really appreciate your insight! I was leaning towards a house hack for similar reasons. You mentioned Bay Area appreciation, do you think there is still room for further appreciation in this market?

@Sean Pan

Hi Sean, thank you so much for your insight! I was leaning towards purchasing a house hack in the Bay Area for similar benefits as you have described. My only concern is that the area has appreciated so much already, do you think there is still room for significant appreciation?

I'm currently paying 3k/month for a one bedroom apartment in the Bay Area. I'm seeking advice on what would be a better investment option/smarter financial decision: to buy a home in the Bay Area, or to continue renting and use that money to buy investment properties out of state. Purchasing a home here would require use of nearly all of my saved capital for a down payment, and would increase my rent to about 5-6k. The train of thought with this option is that I am currently spending 3k/month on rent in someone else's pocket, money which could be going towards an asset that belongs to me with the benefit of principal pay down and appreciation, and I could still invest OOS it would just take a longer time (2-3years) to save the capital again. The other option would be to continue renting and to begin investing OOS this year, and with the money I have saved I could in fact purchase multiple properties in a different state (which I would intend to BRRR/hold as rental properties). Any advice/thoughts/perspectives are appreciated!

Hi @Bill Exeter,

I really appreciate your input. What I am essentially trying to accomplish is bypassing the challenges associated with securing financing as an LLC, but still finding an effective way to protect my assets once I have obtained them by transferring them into an LLC. As you described, I would transfer the property to the land trust and name the LLC as beneficiary, of which I am the sole owner. Based on what you've said, since I am not transferring/assigning membership to a third-party, this should not trigger the due on sale clause correct?

Also, you mentioned that lenders will typically not lend to a land trust and that it is difficult to find title insurance companies that will insure title held in a land trust; will this apply if the original loan is being made to me as an individual, and the property is later transferred to the land trust with LLC as beneficiary? Thanks again for your input!

First time investor here, and would like to know if anyone has done this in practice. I have read a lot about the importance of asset protection, specifically with rental properties, and note that most investors advise to purchase property used for passive rental income in an LLC. However, I have also learned that financing is difficult to obtain as an LLC, particularly if the LLC is new. In my reading I came across a suggested strategy in which property is purchased by an individual, therefore qualifying for a conventional mortgage loan, and then transferred to a land trust, with the LLC named as beneficiary; in this way, the due on sale clause is not triggered, and the benefits of both privacy and asset protection can be achieved. Appreciate any opinions/advice on this!