All Forum Posts by: Matthew Wright

Thank you for the response - How would one go about "properly" setting up the LLC - would I have to finance the mortgage in the name of the LLC as well?

What are the benefits, if any, to putting a rental property into an LLC rather than in my own name?

Hello Bigger Pockets

I am new to the world of REI and am currently looking for my first deal. I am looking for a SFH or a townhouse, preferable townhouse for lower maintenance costs, 3 beds 2 baths, 1800 sq ft, in a neighborhood. I also prefer these homes be close by in my market. I hope to have 2 or 3 properties over the course of the next year or 2. My question is this: Should I secure a property management company to cover the land lording duties on my first couple of deals. I would need assistance on drafting leasing agreements, vetting tenants, rent collection etc, etc. Also, I currently work 60+ hours a week at my day job so I may have limited time when it comes to the actual management of the property. The catch is, after allotting 7% for vacancy, 7% for repairs, and roughly $110/month for property management services - my returns/positive cash flow is next to nothing. It's also important to note that I am looking for a property that is more turn key. I would consider a fixer upper if the returns were higher and I could find the deal, but with my time being as limited as it is I would want to turn the property quickly to get a renter in, and that might not be doable for my current situation. I would be happy to share my numbers if anyone would like to see them and offer a piece of advice. Thanks!!

Hi - does anyone have any suggestions on where to start the process of looking for a first deal? Foreclosures, MLS listings, hiring an agent to help with the leg work, etc? I know your money is made on the buy in REI and this will be my first buy but am overwhelmed on where to start - any and all advice is welcomed! I work 60+ hours a week at my day job so an agent seems like the obvious choice for me but just curious if I am missing the boat. Also - I am looking for either a single family home or a townhouse, no multi family as they are scarce in my area. Thanks in advance

Thanks very much for the reply Jaysen!  I will look into some local banks and credit unions in my area.

Hi BP. I am new to the world of real estate investing and am currently in the process of gathering information in hopes of buying my first deal in 2019. My past investments have been fairly conservative and after looking at the potential returns and benefits of the real estate world I am eager to get started. For my first investment I am looking for a SFH with a price range of 160k-220k. I would be using a conventional loan with 15-20% down, and the home would not be owner occupied. After running the numbers on the BP rental property calculator I have an idea of where I would need to be on the terms of the deal in order to secure decent returns. I spoke with the lender who facilitated my primary mortgage and had sticker shock when I was quoted rates north of 6% on a conventional loan with 15% cash down (which would erode my anticipated returns from the deal structure I am currently looking at). I am sure there are a ton of variables I am missing but I would like to at least have an idea of what range my financing is going to fall in before I start looking for a deal. Is a 6% loan rate on a conventional with 15% down out of whack? What other options do I have available for non owner occupied properties, assuming a conservative approach as this is going to be my first deal? Any and all feedback is appreciated!