All Forum Posts by: Michael H.

It seems to me that you should not include utilities in the rent and stop trying to micro-manage your tenants lives. 

You should probably check with your state laws if a verbal agreement holds any weight. IMO you haven't signed anything so you aren't legally responsible for any compensation to the landlord. Also, for future reference, I wouldn't pay anything until after a contract is signed.

I hope the landlord you're dealing with isn't a jerk... there's a reason people hate landlords.

Hi Brad 

I'm surprised no one has asked, but I have several properties in GA. Is there a way to lower my property tax bill? I've looked at surrounding properties to mine, and my taxes are always in the upper 10% of the neighborhood. I've heard you can appeal the tax assessment, but I'm not really sure how to do that. Is that something I can hire someone to do? Do you think it would be worth it? My properties are up in the Kennesaw/Canton area if that matters.

 I switched a little over a year ago from Cozy to TenantCloud. I feel like it has really good functionality and they have an app, which I like cause it makes it easier for my tenants to pay and submit maintenance  requests.

My debt to income is what its regardless if the property is in an LLC, as I'm the sole owner of the LLC. If you have partners, then I could see how it could possibly effect debt to income. Never considered.

I recently got a good deal on 6 stainless steel fridges from Best Buy. Normally we go with Lowe's or Home Depot. Going to have to check out Costco now...

That's a hard question to answer, probably a personal choice honestly. For me, I have 5 properties and about 1.3m in equity and I feel just fine having an umbrella policy. I also do my own taxes, so not using the LLC just makes my life easier. In the next year or two, when I start using a CPA, I'll probably start utilizing a parent/child LLC structure.

You can create your LLC anywhere you want. Some states are more friendly to owners than others. NV is one that people generally agree is a good one.

The reason you get different answers from your lawyer and CPA is because your lawyer has the perspective of maximum protection, which is having each property in its own LLC, and having your business be a parent LLC on all the properties. Also, be aware that if you have a mortgage on your property, and you move it from your name into an LLC, technically the bank can call your note due. You need to get written permission from the lender before you transfer anything.

 And your CPA is looking at it from a tax perspective, which having your business set up like your lawyer wants would make your taxes much more complicated and expensive. 

I think if you want to protect your equity and keep your taxes simple, just get an umbrella policy.

You really only need an LLC if you have a substantial amount of equity in the property.

IMO you don't need an LLC unless you have a substantial amount of equity in the property. And even then you can get an umbrella policy to cover your equity. I think trying to run your operation through an LLC at this early point in your journey is just adding unnecessary complications. The upside is minimal (especially if you get an umbrella policy).

I was exactly where you are when I started this about 7 years ago, and wasted a lot of time and effort trying to figure it out. Find a good real estate lawyer in your area and get their opinion. Google is your friend.