All Forum Posts by: Michael Koch

After my first year of doing a couple BRRRRs, I'm trying to wrap my head around the money we pull out via refi. Is it accurate to say that the money put into the rehab considered an expense (i.e. painting, new fixtures, etc), but the money received back after refinancing is now considered taxable but just part of the loan? 

@Account Closed

Thanks for sharing your story! ....but I guess I'm missing how you retired?? Retired means not working. You mean you changed careers to full-time REI?

Thanks all! After talking with my attorney, the LLC can be formed wherever but must register in the state its doing business in OR just form the LLC there. So all aligns with what many of you are saying. The advice I didnt receive was which state is best, but sounds like Wyoming is popular!

Yeah, that is the wrong agent! If they know you're a REI and arent concerned about helping you find cash flowing properties, then they're the wrong. My personal take is the first thing they should ask is what is criteria (ie are you a 1 percenter? what ROIs do you want? etc)

@Mike H. 6 years later, and just want to say thanks for that response! My planned approach was more or less what you outlined, and really appreciate seeing all that detail. Now just to get the HELOC paperwork finalized.....

@Monique Pett Any additional details or articles worth me diving into? Sounds interesting!

Hey folks, trying to sort out whether I create an LLC in my home state or where my rentals are. That is what I've done in one state (Wisconsin) and now debating as I look in a new area (Arkansas), if I should form an additional LLC in that state. I live in Oregon.

I'm curious what other's experiences have been. What hassles have you had? good or bad?

@Ron Brady awesome, thanks for that! $200 is roughly where I'm ending up, which seems solid for the time being.

@Nicholas L. typically below $160k via remote investing.

Hey folks, I'm looking for some help on metrics for analyzing BRRRRs. Using my standard CoCs, Debt Service, ROIs, etc, I'm struggling with how to not have the numbers look amazing. With no money in or very little, ROI goes to infinite soooo, what am I missing? Do others have better methods? Or should I purely look at cash flow and call it a day?

@Jehon Bendokas that explanation is super helpful, thank you!