All Forum Posts by: Logan Allec

@Bradley Combs When an LLC dissolves, its assets are distributed to its owner(s). So since the LLC is dissolved, the property is no longer "owned by an LLC that has been dissolved," but rather by its owner(s). Have you consulted with an attorney?

@Andrew Lydon, you have probably already done this, but the most important first step is making sure you pay all of your property expenses out of separate bank / credit card account(s).  If you do this, it will translate to far less fees to an accountant who would otherwise have to charge you for the time incurred navigating what business expenses you incurred in your personal accounts.  Also, if you have an entity set up, it is very important to keep personal and business transactions separate.  Good luck!

@Ariel V Mangoba, I have a friend who worked with BBI to acquire property in Ohio a couple years back.  If you'd like I can reach out to him to see how the property has performed.

Hi @Clifford Adikuono.  Long time no talk.

SoCal can be a tough nut to crack for newbies.

Have you considered an owner-occupied small multifamily for your first deal?

You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

My first deal was a 4-unit up I bought with FHA financing (3.5% down) in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

Good luck!

The appraisal and credit report -- I assume they were obtained in order to obtain a mortgage? If so amortize over the life of the loan when the property is placed in service (2018 event). The deposit -- do nothing with it -- this would not affect your taxes. So none of those costs will get reported in 2017.

How much gain was deferred in the 1031 exchange?

Oops, for some reason my brain processed it as Fort Worth. Cosmo, I have a client who owns about 20 or so units in Fort Wayne. Feel free to PM.

Have you thought about "house hacking" a small multi? That was my first move in the game, and it proved to be a smart one.

Hi @Cosmo Lee, I do not have much to say about the ins and outs of Forth Worth, but keep in mind that if you hold your Texas properties in an LLC (even a wholly-owned LLC), you may be subjected to the Texas Franchise Tax. Texas is one of the rare states (as you probably know California is one of them too) where owning a wholly-owned LLC, though it is disregarded for federal income tax purposes, can have state tax implications. Good luck with your investing!

@Emi M. It was not very competitive at all when I expanded my radius.  Mind you the property is in a rural area on the outskirts of Santa Clarita.  I didn't really have any deal breakers other than the ones you mentioned: price / ability to cash flow and close enough to work that I could still keep my job.