All Forum Posts by: Luis Montanez

My advice is: DON'T DO IT.... if it is not in the contract, you have no way of holding them accountable other than that security deposit... another route will be taking them to court but that will be uphill and avoidable if you had kept the deposit. good luck

In the ideal circumstance the title of all your properties will be under a corporation and all transactions and deductions under the corporation so any profits or loss will flow to your personal incom.  

However, since it is hard at first to get loans for new entities all properties (in most situations) end up on the individuals name and as such must report this property's under personal income (sole proprietor).

But what IF,,,,  a 'subject to" agreement between you and your entity were you sell or give all rights to the entity to collect, manage and sell your properties? 

Do you think this will be way to "all that entity is not in the title of the property" have the right to collect the rents, pay the mortgage, and claim all deductions (i.e. deductions, miles, expenses, etc.) for it self?  Please do not mention having a similar agreement with your management company since this will flow some additional expenses to your management entity but not all, most will still be on your personal incom.

I know that this may sound shady at first, but lets not limit ourselves in giving this idea some serious thought. 

Thanks for taking the time to read this and providing some valuable input based on your vast experience.

@Rosanna Gonzalez I will love to meet to talk about REI (real eastate investing). However, it is important that you establish a good foundation To short the learning curve and you don't get a nose bleed when we talk about so many different strategis, acronyms and consepts that exist within this one aset category. Some books that I personally recommend (I like audio books) are:

1. Loop holes to real estate investing

2. The Millionaire Real Estate Investor

3. Money Master the Game (new by Tony Robbins)

For me REI is one of several asset classes that I invest in and (as you will learn) Buy and Hold is an income acelarator for your financial future and a tax reduser for does like my self that seek ways to minimize tax liability.

PM me after you read this books and would like to talk about REI :-)

Wow @rossana 

Frist welcome to BP. Few words in your statement that sounded my newbe alert that I once was and that if you are not careful, will lead you to people in your path to financial freedom that will separate you from your money.

1. 70-80K range for a rental? In my opinion that is to high unless it needs no renovations. If you look at the current market rents (sec 8) in cobb county rents are $900 to $1,400 based on the amount of rooms. If you are getting a mortgage or using OPM (other peoples money) for long term financing (like most mortals do). You are looking at a monthly morg. Payment of $550 to $800 per month plus property tax, insurance, etc. You are looking for an additional $200 to $400 per month once you do the math this leaves almost non, or no profit for you.

I seek houses in Cobb county (I like short drives to my properties) were the NOI is $300 to $500 per month at a minimum. For this reason, I seek houses between $30k to $60k

2. Heavy renovations? Unless its a flipping, I don't believe in "massive renovations" $10k tops. Unless I acquire the property at a massive discount the numbers just will not work to buy and hold unless you are doing some type of "subject to" arrangement. 

 Run the numbers of a $80k hous with $20k to $30k renovation and you will see that current market rents are not sufficient to cover the debt and make a dicent profit for the amount of risk.

3. Don't need amazing tennents? I seek life long tenants. If you don't do the same, turn over cost will eat you up.

It is not my intent to put your hopes down ( I personnaly like to move with care) but the market is hard now.  The only properties that currently meet my criteria without doing heavy marketing are in Austell, Mabilton, Powder Springs some areas of Marietta and Douglass Ville.  I don't touch Atlanta since not familiar with the market and it is too long of a drive for my trouble.. Hope this helps

@Daniel Brownlow welcome to BP I am also a military RE investor currently working at Dobbins ARB Marietta, GA I am a buy and hold investor that purchase mostly in Cobb County, please contact me if I can be of your service :)

Based the analysis of my farm area, (Cobb County) I say we are at the phase of stability, what do you think? this since, all that there is not much supply, home prices are not going up rather I have noted that they are stable. 

For SFH, in what cycle are you in your farm area? What factors have you conceded to make such determination?

Below some knowledge to share:

Property values rise and fall due to recurring life cycles of development, stability and decline.

The development phase of the cycle is also known as integration. This phase is a period of growth, expansion, and rising property values.

The phase of stability, also called equilibrium, follows next. During this phase, growth ceases, and property values level off.

Then finally comes the phase of decline, or disintegration, which is the time when deterioration sets in, and property values fall. In time, the cycle starts over with a new phase of development.

It is subjet to your negotiation skills, there is no established amount by law

@Jean Paul Rousseau Not sure what you need an Agent for, but if it is to sell your 2 SFH look no further, send me the details to my PM and I will give you a win-win cash offer, so you can save all selling cost. lol :-)

@Fred Eckert Great strategy, thanks for sharing.