All Forum Posts by: Leigh Jones

Hey all.

I have 3 SFH rentals and Im thinking of doing a multifamily next.

In Brandon's books he really sells me on ONLY doing 3bd/2ba. Is he mostly referring to SFHs, or multi-families, too?

A lot of the multifamily deals in my area are duplexes or 4-plexes with 2bd/1ba per unit.   Wondering if I should only be looking for 3/2s or if that "rule"/"suggestion" only applies to SFHs. 

Any input and pros/cons will be helpful. Thanks :-)

Just bought my first deal. Made an offer,  47 days later a tenant moved in. Woo! 

I paid for it by using HELOC funds for closing costs & 25% down payment, & I mortgaged 75%. Since I have no "cash" in it, is my CoC Return considered infinite?

Or would you all consider the Heloc portion of it the "cash"? 

Edited to add: The rent covers all mortgage, HELOC pmt, prop mgmt fee, plus some.

Andrew, thanks for sharing your story. As a newbie, its nice to hear a "close call" testimony amongst all the "home runs".  It sounds like a lot of stress; but the way I see it, you got paid $2,500 to learn a handful of lessons that you can't learn elsewhere. Plus, you had enough foresight to not lose a ton of money.  

Thanks everyone !

Thanks Scott so much for your reply. 

By doing the land trust with LLC as beneficiary, am I still getting that extra layer of liability protection that an LLC supposedly provides?

I say "supposedly" only because I know the layer can still be pierced. I'm just want  to do whatever I can to protect my personal assets.

My current mortgage guy says I can't buy a rental house under an LLC. Has to be my name. Do I just need to find a different bank that will allow it? Or do no banks allow it?

I could also do the Quit Claim Deed after the fact. I'm apprehensive of having the Due-on-Sale be triggered, and/or being forced to re-fi.

What are people's experiences - have you been allowed to buy a Single Family under your LLC? Have you ever heard of a Quit Claim Deed being triggered?

*Note: I currently have 1 rental property in my name. I am planning on transferring to LLC. Secondly, I plan on buying more, and was really deflated to hear I can't purchase under an LLC. Again... not sure if its a bank-to-bank thing or if all banks do that.

Thanks in advance for your insight.

Seth, thank you.  Do they get the nominal value back? Meaning, they put 20k in and 10 years later they get 20k back? Or does that 20k earn "interest"?   

In Brandon's books/webinars, he talks a lot about how he made his first deal. The partner brought the 20% down payment, Brandon took out the mortgage & did the management. Cash flow, expenses, & future equity split 50/50. 

My question is this---what happens to the Partner's original cash investment when the property gets sold?

1. Partner gets that nominal down payment back, and THEN the remainder of the equity is split 50/50.

2. Partner gets nominal down payment + interest back, and THEN the remainder of the equity is split 50/50.

3. Partner doesn't get the nominal investment off the top.  Each party gets half the profit.

*Note: Not looking to debate if 50/50 is good/bad idea. Just wanting to know how the partner's original down payment is "paid back," if ever.

PP is $220k, monthly PITI would be $1060 w/20% down.

unit A is rented for $875, unit B is rented for $795. (=$1670)

Annual CF = $7230, cash investment 44k, COC roi = 16%

3/2/2 single story, all brick home 

Have NOT accounted for PM yet (may not choose to do it) but its 10% in my area

just wondering if it's ever worth it to buy something at market value or if getting a discount is the *only* way to go

Seeking advice.  There's a duplex for sale, but the seller is not motivated to sell below market value.  If we pay market value, we will still cash flow $300/door.   Both units have renters; one that's been there 3 years and one that been there 14 mo. 

is it still a "good deal" if we're paying market value?.  We'd cash flow but wouldnt have a big equity cushion.