All Forum Posts by: Kushaal Malde

@Artur A. congrats on the purchase. What was your rehab budget going into the project? With this scope of work, it is best practice to get at least 3 different contractor bids, and you already have one from your PM. 

@Andrew Scott welcome to BP. Would love to connect and network. Let me know if I can be of any help.

Get on email lists: wholesalers, active agents etc. Have your financing secured whether it's cash, hard money or conventional. Follow up and be consistent! Could also call For Rent signs and ask if they are interested in/have considered selling. 

@Ray Suerto you have received a great list of suggestions here so make sure you review them all and implement what you like sustainably and consistently over time. I'm also growing my network and would be happy to connect. If you need a 2nd opinion on anything or want to bounce ideas. 

I will quickly add my suggestion: cohost an open house with listing agents. Make open house "goodie bags" and dish them out to everyone who attends. 

@Ammar Muhammad welcome to CA and great idea starting out with a househack. How has your progress come along? Would love to connect or if you need a 2nd opinion on anything. 

@Madison Balter Did you review the appraisal report, what were the comparable properties used? As @Greg Kasmer suggested, get an opinion of value from a local realtor, compare with zestimate etc. Ideally you find something amiss in your review and you are able to challenge the appraisal. Otherwise try another lender!

CA is tricky. At the minimum, rental property should be titled to an llc of the state the property resides in, not only to be legally recognized by local government to file evictions but also to containerize your liabilities (creditors of the llc coming after its members and vice versa creditors of the members coming after the llc). However, adequate insurance coverage should always be the first line of defense. From an asset protection standpoint, encumbrance by a mortgage is another line of defense. 

At the same time, since you and your brother both own it will be a multimember LLC which must file its own tax return, which of course is a fixed cost. So you have to decide is the set up and recurring maintenance costs worth it for 1 property? Or if you will be buying more properties, can those costs be diluted? You would need a different structure if so. If you and your brother continue buying properties together, it may make sense to form a parent holding company (mmllc) and each acquisition thereafter will have its own llc which would be solely owned by the mmllc parent holding company. This structure is scalable and files only 1 tax return because there is only 1 mmllc at the root and each property level llc is a disregarded entity of the parent.

This is just for discussion purposes and you should definitely talk to a real estate attorney and cross check with a real estate cpa. 

@Apar Bains congrats on the deal so far. Assuming a rate/term refinance vs cash out, you could push 85 LTV with conventional pricing. Otherwise a cash out would be limited to max 75 LTV for conventional.

@Bahman Ghashghaei Would love to connect and grow my network as well. What kind of investment projects are you working on/looking for?

@Patnaree Conrad another thing to keep in mind if you do take a loan against the 401k, the interest payments do not count against your dti if you're staying conventional.