All Forum Posts by: Leslie Beia

After 5 years dabbling in STR's, BRRRR's, and flips, I'm ready to focus on one area and asset class, scale up, and build a portfolio that I can eventually retire on. My cousin's fiance has a painting business and has done numerous jobs for family members over the years. He has proven himself to be a hard worker, ethical, and as it happens, he'd really love to expand his knowledge base and grow into bigger responsibilities. I feel, and he agrees, that we might be able to do some good work together.

My question is what should I be considering as I think about the structure of our working relationship? I know that I stand to make more money per renovation by just paying for the work, but I'm attracted to the idea of partnering with him for a few reasons. One, I think it would give him a greater sense of responsibility, urgency, and dedication. My GC's have been ok, but they know they are getting paid no matter what happens with the rest of the deal, and I like the idea of sharing that risk and responsibility with the person doing the work. It would also lessen my out--of-pocket on either hard money costs or cash I spend, so I'd have more to work with to acquire more properties. I also know that he'd need to grow into the position, but once he has a grip on it and a good team of subs, a partnership would mean we'd work together exclusively and I wouldn't be sharing him with a bunch of other investors!

What I'd bring to the table would be researching and sourcing properties, cash for down payments and other expenses, and design and some finishing material sourcing. He would be responsible for budgeting and managing the renovation entirely. Does this sound like a 50/50 split? Maybe after I am paid a percentage on my cash investment? I'd love thoughts and advice from folks who have done it this way, thank you!

Great suggestion, thank you! Both houses are in Clarksville and thankfully were not damaged during the tornado!

Hi All! I lived in TN briefly and bought several properties there that I manage as STR's, and have a 3rd in MI. They are all currently in my TN-based LLC. I moved from TN to TX and have started flipping. My plan has been to transition out of STR's as I'm getting burnt out, and into flips at least for a while to build capital for longer term, passive investments. I am solidly on that path but need to get my business structures figured out to reduce my tax liability as much as possible. In 2024, my plan is to complete 2-3 flips in TX (already have 2 going!), 1031 my 2 TN properties into a BRRRR duplex in TX, keep my MI STR, and possibly start doing some flips in Detroit as well. Basically, I'm getting all the way out of TN, and doing all my business in TX and MI. Questions:

1. I assume it makes no sense to keep the TN-registered LLC after I sell the TN properties. Do I just start a new one or is there a way to transition to a new state? Does the 1031 process affect this at all??

2. I know I want to start an S-corp now that I'm involved in active RE. Do I need the new LLC 1st THEN the S-corp, or is the S-corp stand-alone?

3. Are there any considerations I should look at when deciding if I should base my LLC/S-corp in TX vs. MI?

4. My current flip is in my personal name- long story, the original plan was to hold it- but I'd like to get it under the umbrella of the S-corp when that's set up, is that possible?

5. Am I at a point where I should have an attorney or other professional oversee and set this all up, or is it still simple enough that I can do it myself online? I have a great CPA already. 

Thanks so much for any guidance!

Hi! I've talked to 2 CPA's and have received completely different information, so I'm hoping someone here can clarify!

I have purchase a SFH (with hard money) that I intend to live in and share with renters (house hack), then sell in several years to avoid capital gains. However, I cannot qualify for a conventional mortgage on such a big house (the catch 22 of this strategy!) when I refi, so I am going to ask my sister if she'd be willing to co-sign the loan. She has a high-paying W2 and owns her house free and clear, so she's well positioned to do this, but there is a primary concern I know she will have that I want to get clarity on before I approach her: how it will affect her DTI (she is thinking of buying another home down the road)? In additional to offering her a nice payoff for the service when I sell, I am hoping she might see some tax benefit as well since she currently doesn't have any tax write offs.

So, trying to figure out if the situation would be if I am the owner/occupant of a primary residence taking a homestead deduction for said residence and otherwise not seeing any benefit from an investment standpoint in tax write-offs. And she, as a non-owner-occupant co-signer on the loan could 1) claim 75% of the rent as income to help offset the increase to her DTI and 2) see any tax benefit being able to write off interest, repairs, etc.

One CPA said that yes, as long as everything is above-board with the IRS, this is all ok, and another one said no, she cannot act as a landlord in this situation and see any tax benefit or improvement of DTI. Also have spoken to several lenders who have not been totally clear how this would pan out. If anyone has experience with this situation, I'd love some clarity!

Hi All! I just bought and started renovations on a 4 bed/3 bath house in Austin, TX. It was an extremely good deal but came up before I am quite ready to qualify for a conventional loan on a primary residence on a house that big. I really want to hold this house, not only because it's a perfect mid-term/2-year flip, but because selling in Austin sucks right now. I'm getting quotes on DSCR mortgages so I can start with that, refi into conventional when I'm qualified, then move in and start the 2 year clock.

In the meantime, I'd love to hear about any creative strategies you've used to rent the rooms. There is a huge family room on the 1st floor w/ a wet bar I'm converting to a kitchenette, then adding a shower to the lower 1/2 bath. So there's 4 bedrooms and 2 full bathrooms upstairs, and this 'studio' and a full bath downstairs (unfortunately you have to walk through the living room to get to the bathroom from the studio, so it's not totally private/self-contained). 

I heard recently about someone in Houston who is making great money renting exclusively to airline attendants who share rooms. I could combo mid- and short-term rent possibly, or get regular long-term renters but rent out 2 bedrooms and a bath together upstairs, a suite essentially, so that each renter has their own bath. I am doing a full renovation so the house will be gorgeous, all brand new, and top of market. Any other creative demographics/ideas you have heard of or utilize? The DSCR mortgage and taxes will be higher, so I need to max out the property as best I can. Thanks!

I'm under contract on a great BRRRR that I plan to refi into a conventional homestead, househack for a few years, then sell as a slow flip for tax-free income! This purchase was made possible by a refi I did on another property I own and is sucking up the majority of those proceeds. I am aware that there is a way to put my invested cash into a 2nd mortgage position when I acquire the property so I can pull it out through a rate and term refi, but I'm not sure how to correctly execute that. I would really love to speak with someone who has done this to coach me through the process of how to talk to the title company and set it up. Closing is set for the 25th so I'm hoping to figure this out ASAP. Thanks!!

Hi! I've had my eye on a very broken down house in a great neighborhood for some time. I am finally motivated to start doing some direct marketing to homeowners and I'm just curious what you would do. This house has shown up in neighborhood group posts, no one seems to be able to reach the homeowner and it's a very noticeable eyesore and has been for some time.

I skip traced her so I have phone numbers and email. Her mailing address is the house, but the house looks like it can't be possibly be liveable- it's that distressed. And the garbage cans never move. She is 78 years old, has a very cheerful and active Facebook presence with lots of posts about family, and she has posts referencing living in Austin so she is here. She bought back in '93 so it's likely paid off. 

I am actually looking to buy a primary residence in this neighborhood, so it's honest to approach her as an owner occupant. I'm just not sure what the best route is- I imagine she's been contacted many times. I can't imagine why she'd want this house to just sit and deteriorate. I'd appreciate anyone's thoughts about the situation and how to best reach out! 

Hi! Older post but I'm doing research on the same idea and thought I'd check in and see if you've had any progress? I'm thinking along the same lines- alleviating housing costs in an expensive vacation area. I had thought about doing a mix of long-term space rental, existing long-term rental tiny homes, and short-term rental tiny homes. I found a place in NC doing this, looks amazing and pretty successful. I reached out to see if they do or would consider doing consulting work, since they've gone through the process. If you are still into this idea, reach out to me- perhaps we can get them to do a seminar or something! Cheers, Leslie

 Hi Erik!

I can qualify on all those fronts (for 80%) no problem, just trying to reserve cash. Thanks for the input and I'll reach out if I decide to pursue it!

Hi BP! I'm looking for the lowest possible down, fixed-rate product to finance a turn-key Airbnb w/ more than 12 months of financials. DSCR/asset based. Thanks!