All Forum Posts by: Mark Rocka

I keep hearing and reading that moving a house into an LLC can trigger a "due on sale" clause of a typical mortgage. I got to wondering, what if I buy a house for a BRRRR strategy directly into an LLC with cash? Would a bank then loan the money to that LLC for the refi?

It seems like that would be an easy way to get homes into an LLC without risking the banking coming for its loan, but I'm a complete newbie, so I don't know what I don't know.

Thanks for any advice!

I just listened to a BP podcast where Brandon said he loves renting to folks who sublet for Airbnb because it means his house get professionally cleaned several times a week.

Might be worth looking in to if that’s the case.

@Zachary R.

I just heard one of Brandon’s podcasts recently where he found some nice hardwood under some carpet. What he chose to do was put down new, more durable flooring over the hardwood because renters are tough on hardwood. Then, right before he sold the house, he removed the new flooring and sanded and stained the hardwood.

He said it worked out really well because the hardwood increased the desirability of the house.

@Jim K.

I understand replacing something that needed to be replaced. I guess my question doesn’t really apply to your situation. I’ve just heard horror stories about renters’ kids flushing toys down the toilet or some nonsense like that.

It just seems to me there has to be a line drawn somewhere that says “This repair is clearly up to the landlord or the renter.” I just don’t know what that line is.

@Jim K.

That’s great info! Thanks for sharing.

Total newb question. If a drain is clogged as the result of something the tenant obviously did, who is responsible for paying to fix it?

Not knowing any better, I’d think making tenants more responsible would encourage them to think before putting things down a drain they shouldn’t.

@Matt Lefebvre

Great story and lots of material to learn from there. Thanks for sharing!

@Angelique A.

I’m grateful to you for sharing your experience and the replies it generated. There is gold in this thread, so rest easier knowing that your hard times will help others like me when we start investing.

Thanks to everyone that contributed.

@Charlie Moore

I'm a complete newbie to Bigger Pockets and REI in general. I was curious about the answer to your original question, so I just got finished reading this entire thread.

As a complete outsider with no preconceptions of who’s who here, I have to say that your responses have been borderline rude to these professionals who have given you their time. Kurt was not the first person to say what he said. I saw your original question answered here several times. It almost seems like you’re looking for someone to tell you it’s OK to practice tax evasion.

Thanks to everyone else who took their time to answer. Your time wasn’t wasted. I learned something. :)

@William Hochstedler

That’s good stuff! Thanks for the link. Sounds like title reports are a must for auction investing.

Thanks Bill!  Much appreciated!