All Forum Posts by: LaMiracle Schaefer

@Bernadeau C. If you have access to a Credit Union, I know NFCU offers 15% down payment but the term of the loan would be 15-years. However, it's worth looking into if you can afford an extra $100-$200 on the monthly payment and still make a profit from the rental income. 

If you have access to a Credit Union, definitely look into it. I know NFCU offers 15% down, however, the term is 15-years. Something to consider, if you have the room to pay $100-$200 more on the monthly payment and still make a profit from the rental income. 

Thank you all for the responses! I took heed to the great advice and things worked out with the tenant. I was able to handle the necessary repairs at that time and now I am in the position to replace the floors completely this weekend. I appreciate the advice! 

@Andy Thompson Thanks Andy for your response and great perspective!! I agree completely with what you're saying and is one of the main reasons I asked. The feedback definitely helps me address the situation in a new light and contributes to my thought process. 

@Nathan Gesner Thank you so much for responding so quickly! I thought so but will be sure to check my state laws. Some places I've seen flooring listed as something that must be fixed/maintained by the landlord but I assume that would mainly apply if the flooring was molded or multiple broken areas. 

I’ve done a bit of research on what’s required or not by landlords to fix. However, can landlords deny to fix issues that may be deemed cosmetic? Ex. A home has wood tile flooring. A few of the tile pieces slide slightly just because of how they are clicked into place. Would this be necessarily considered something to fix? The only solution that would seem appropriate would be to replace the flooring completely. However, it’s habitable and not a hazard. 

@Jessica Semrad Hi! Thanks for the update, congrats to you all on getting that LLC set up! Thankfully, I just finished getting mine filed today. Incfile made the process so easy. You're the second person who hasn't had an issue with transferring their property. I'm feeling a bit more optimistic that I won't have any issues with my bank. I've reached out to them and are getting similar sentiments that it may not matter to them. I've heard similar things of people having an LLC for each property. I hope to understand things a bit more so I can completely utilize all the advantages of that. Good luck to you as well!! 😊

@Billy Daniel Thanks for the follow up! That’s great to hear, I’m hoping my situation works out similarly. So far, I’m getting the same sentiments from the bank since essentially the repayment doesn’t change. Good to know it worked out well for you! 

@Jashmine Cook Good luck with your investing! I just got my LLC formed and think I'm going to just hold it in back pocket until I'm ready to purchase my next property under it. I'll manage the property for now on my own.

Hello BP Community, 

I am in the process of filing my LLC. I currently have a property that is financed personally. I do not want to transfer ownership to avoid the bank possibly initiating the due on sale clause. However, the LLC is still being formed for real estate use for the next properties. I just don't see the hassle in transferring things around for this first property.

Here is my question: Since the property is personally held, can I still use the LLC as basically the "landlord" and I will be the property manager? I want to do this to set things up for how I plan to operate going forward with additional properties. I think it is easier to have the LLC as the face of things with myself as the manager. Am I able to communicate with the tenant under the LLC's name (example: emails)? Can I utilize the business bank account or would it be easier to have the funds separated personally since the income is technically not under the LLC? Would I do a property management agreement between the LLC and myself? Tax wise, would this make things too messy?

I think I am making things way too complicated, but any clarification or help is very appreciated.