All Forum Posts by: Loren Clive

This is a state-specific question. Here in Hawaii you are allowed to charge DOUBLE deposit for pets, which is what I do. But different states have different laws.

I own two. 

Bank of Hawaii. Not sure of the LTV but they have awesome low rates and low cost loans

I moved to Hawaii in 2005 fresh out of college with nothing. Never owned a home, had little cash, no career. I started selling real estate and investing and now own 8 homes on Maui. It can be done! 

Your advantage is the VA loan, the best and least expensive loan you can get. Go house hack!

Hm, you need to check what the laws are in Colorado. But here in Hawaii, if there's no possession, the lease is not binding. I had a similar situation happen where the prior tenant did not move out timely, the new tenant could not move in as scheduled and I simply returned their deposit no damages, no problems.

I agree these folks sound high maintenance and I'd go with your gut feeling of NOT renting to them. 

I would wait until you have a property in escrow. LLCs are not necessary, in my opinion, if you are the only owner. Better to get robust insurance and an umbrella policy.

Nonetheless, it's almost impossible to get financing in a LLC name, so you can decide after you close if you want to form a LLC. You apply for one with your state business registration.

I'd do direct mail and look for seller financing.

Not enough info to make a decision. Where is this property located?

Does the rent roll include the rent you're paying to yourself?

Calculate your monthly net then your cash on cash return based on your equity in the property. If you can sell and acquire a property with better return I would do it. But I would list in MLS probably since the buyer's activity sounds like it's a hot market where you are.

Most importantly, you want to make sure you can still qualify for a mortgage without the income from this property.

A smart businessperson once told me: never sell something that makes you money

keep the deposit. Is this even a question??

You don't need a LLC unless you have properties with a partner. I don't know why everybody recommends it. In fact, my attorney client once held a vacation rental property in his wife's name--he wasn't scared of getting sued. It does make it harder to finance and insure in a LLC. Just get a good umbrella policy and you're covered.