All Forum Posts by: Lien Vuong

Great share and I'm glad there's not one more $0 behind that loan! An expensive lesson nonetheless.

Congrats on your purchase and getting into RE investing. If you're adding an ADU you wont need to add in sprinklers but a legal expansion into a fourth unit would most certainly. Anything over 2 units necessitates that rule. I am expanding my two fam in Eastie into a 3 so I am familiar with the process. If you expand unit 1 into the basement you wont likely need to sprinkler. I also own another triple nearby to the neighborhood you're buying (im fairly certain I know the trip you're buying in the corner) and have done great with it.

Good luck and welcome to Eastie!

It would be your RE attorney who can answer this question. You can also inquire with the Trustees but that would only flag things. It is my understanding that you will need to vacate that unit if that rule is in the by-laws. 

It looks like you have some great experience. Is the issue in scaling in time strain and work flow or money? I think thinking about some of your hang ups and potential obstacles will help you to resolve it. Based on what you share you have experience in multiple facets so there's lots of directions to go!

Yes, you can quitclaim that prior to closing and it'll satisfy the bank. If you filed taxes on that property under ABC LLC you still can issue the K1s and state that there was a sales event. Your CPA should be able to tell you implicitly on any tax repercussions on that.

Source: I separated a multi-owner LLC building prior to closing to exchange into a property I own solely.

Hello and welcome to BP! 

Given the rate environment I'm not sure that a HELOC makes much sense or if you'll get something significant enough to buy something closer to Boston. Will you be selling the unit tenanted? Perhaps emptying it so that it can attract an owner occupied buyer is a good alternative or hiring a PM company to off load some of the work there for you. I'm sure that it's taxing emotionally to have to deal with tenants as well as making the commute.

Welcome to the community!

Commercial is your best bet (rates are actually closer to 7-8%) or you can have a loan against your other assets such as brokerage, retire accounts, or a group LOC for your other properties. In those instances you can purchase the new property in 'cash' position and do not have to get an additional mortgage.

Congrats on your purchase and expanding your portfolio!

-We need to set up an operating bank account for renovation work for our new property, should we set this up through the trust, through our existing LLC or just pay using our personal accounts? My father, my wife, and myself will all need to funnel money through this account to fund the project.

Operating account should be in LLC and you can transfer money and source it from there. Your living trust, if you've set one up, will notate that the LLC is part of the assets within that. 
-We have been told about Umbrella insurance from friends. Should this be something we consider?
Yes, its additional protection for short money ($500-1000/yr) depending on coverage
-Will my father be able to transfer money into the LLC/Trust account without it being seen as a gift?
I believe trust is OK but LLC is more dicey - refer to your FA (Financial Advisor/CPA) for this
-When the time comes to pay back my father, will we be able to distribute proceeds from the sale/refi as we see fit?

You should be able to pay it from LLC and document as 'expenses' for the LLC. This is common practice. 

Happy to share a CPA contact if you need it, just DM me.