All Forum Posts by: Kyler J Sloan

Paul Sandhu: Thanks for the tip. I may have to check there; either that, or speak to an attorney. 

John Underwood: 

As I implied in the "note" above, this is not something I would do for the sake of ROI. But, given that I am already intending to keep a home gym on the property (for my own use), I am trying to understand how I can mitigate the liability risk.

I will soon purchase my own rental property in Tennessee, and would like to utilize my gym equipment (i.e. I am "house hacking"), but do not know how much of a nightmare this has the potential to cause in the case that a guest injures themselves using it. I had planned on keeping it in shop building distinct from the house; a pool is close to the shop, and I could convert the area into a "mini gym complex". 

Regarding this: 

[1] Would it be possible to create a separate LLC for a "Gym franchise", under which I include every home gym that I add to future properties?

[2] Would the building have to be on a different parcel of land (other than the one on which the house lays)? -- that is, would I have to subdivide this land? 

I would think it would then be possible to treat home gyms located in out-buildings as distinct locations for gyms which are part of the same franchise. 

Please let me know if what I am suggesting would work, or if it even makes sense. 

Note: I am aware that the ROI for a single property would be incredibly meager; but, this is something I would like to do with at least one property, for my own use. If it also attracts more guests, then I might as well advertise it.

I will soon purchase my own rental property, and would like to utilize my gym equipment (i.e. I am "house hacking"), but do not know how much of a nightmare this has the potential to cause in the case that a guest injures themselves using it. 

Would it be possible to create a separate LLC for a "Gym franchise", and include every future home gym under it, given that each are located distinct from the house (i.e. a single car garage)? Would the garage and the house need to be on subdivided land?

Then, could I have each guest sign a liability waiver before being granted the keys to the gym? 

If I would also like to add a pool, could I not simply ensure that it is placed on the same land that the gym is on, and include it under that LLC as well?

Thank you in advance for any feedback.

If someone is "house-hacking" a multi-family property consisting of (3) units, and wants to use the projected rental income generated by it to help them qualify for the total amount, will they use that income expected from (2/3) of the units? 

@Lee Judd I will. Thanks again

I will have to look into it, but fear that, with the master lease option, I would spend quite a bit more on "rent" over time that it would take to subdivide the property initially, and begin building equity thereafter. If the mortgage is assumable, I will definitely look into the wrap-around option. That method is new to me, and I have written it off in the past for fear of the "due on sale clause". 

Thank you both. As a backup plan -- in the case that he will not accept 2ed position -- there is a chance that the seller has paid the 200 K which is on county record for 2014; if so, I will see if he would be willing to subdivide the land (there are three distinct cabins), conventionally finance the two smaller, and owners finance the largest. 

I am new to real estate investing, and have a simple question. 

Can I do 50% sellers financing if the mortgage owed by the seller can be covered by the mortgage amount I qualify for? 

In my case, the seller of a 600 K multi-family has a remaining mortgage balance of 200 K, and I can obtain a loan for 350 K -- is there anything preventing me from financing 300 K through a bank, and asking the seller to carry the remaining 300 K? 

Thanks in advance for any feedback

The good questions never get answered.