All Forum Posts by: Mathew Ingraham

Thanks.

My fiancé and I ready to buy on our own home using an FHA loan as well. And this is looking more and more like I will go ahead with my her and buy our own home and then pursue this investment.

However just for conversation if I were to rent from this joint venture it seems like I should just pay fair market value to keep the running numbers in tact. Fair market value is high in this area and I would be absorbing some of that back when we eventually draw profit.

Has anyone on this forum ever rented from themselves? Is it even wise? how many times could one pay taxes on that money as its moved from person to LLC and then back to person?

Thanks.

Hello

I have a unique opportunity to use capital and equity from an investor to purchase a multi unit property and rent out a portion of it to my self and or a tenant while using the other portion as a vacation rental. The investor is putting the due diligence and business plan in my hands to submit and review. We have spoken of starting an LLC. My first question is: Understanding that the investor would supply the down payment and some start up funding, lets say $250,000 for a $1,000,000 property, what would be a fair starting point for ownership percentages? simple math says 25% however I feel like any investor would want to negotiate more.

Vaguely speaking split resposibilies would include:

Myself - Handling of financials and property management

Investor - on hands involvement with acquisition and any necessary initial improvements and involvement with any major projects.

the investor lives out of state and I live in a highly desirable vacation area where a combination of local tenant(s) and a vacation rental would eclipse any mortgage. 

Another up front cost to consider would be the vacation rental. Adequate furnishings and housewares; art etc. would be required to draw the correct price for the unit.

New and excited to BP...

Lets start a conversation!

Mathew