All Forum Posts by: Michelle Pepe

Easiest way to form the LLC's is to just go online. Pick a state that's "business friendly". Most people favor Wyoming of all places lol.

I, personally, wouldn't say there's any significant downfalls to LLC's. They will protect all your assets individually. Honestly, the more properties you have, the safer each and every one of them are in independent LLCs. Plus, your personal home will never be at risk if anything ever happens at one of your supplemental properties.

I'm not sure where you are in the country or your states laws, but the only "hiccup" in transferring properties to an LLC is having to pay a transfer tax if applicable.

Also, double check with your lenders if you have any mortgages on the properties because I've heard some horror stories that when you make changes to the loan, some lenders can change the interest rates.

Good luck!

Good thing about LLC is it qualifies as your personal income on your taxes. It's not like a corp or anything that will be taxed differently.

It's all about liability, as I'm sure you know. If you get one bad tenant who wants to sue you for a garbage reason and all 3 of your properties are in your personal name - it's all at risk. I know people who don't care... but at minimum I'd suggest LLCing your rental properties away from your personal name. Optimally, you get a different LLC for each property... but if you get one for your rentals at least your personal home wouldn't ever be at risk.

Also, a personal 2 cents... try buying the house in the LLC if the bank is willing to give you the same numbers, rather than buying it in your name and then having to pay transfer taxes to then put it under an LLC.

Hey Joe! I'm an agent in the HV. Shoot me a message and let's see what we can find you!

Hey Ari. I'm an agent in the Hudson Valley area. I would love to talk to you more about what you're looking to do!

Hey Ellie! I'm an agent in the Hudson Valley area. Your limitations are mostly going to come from HOA/Condo/CoOp type communities. If it is your own "personal" residence, there are not many limitations. My best advice would be to look by ski mountains/resorts, Bethel Woods Performing Arts Center - or other concert venues, and around lakes in Sullivan County, NY. Let me know if you need any help!

 I can do the whole Hudson Valley! Technically including the city and Long Island, but I know the HV way better. Would love to help you out in any way I can!

Hey @Quentin ! Im an agent upstate in the Hudson Valley and have plenty of connections in Albany area. I have a few lenders that would be able to help as well. Reach out if you want some help looking!

hey Amal. You'll get all different thoughts and advice from all different people. I'll just give you my 2 cents from my personal experience. My first investment property was out of state, so I was a little nervous just trusting people over the phone. However, when I found out the real estate brokerage who helped me buy the house also offered PM services, I jumped on it. I still looked into them and asked a billion questions (just google good questions to ask PM before hiring them and pick out the ones important to you), but they did so well being my agent I knew they would take care of me in PM as well. I'd say find a good local realtor and ask if they know any PM, or if their brokerage offers it (most around me offer that service). They handle everything from rent collection to repairs that come up. I only get a call if its going to cost me money. Even better than that, they do inspections on the properties to make sure the tenants aren't wrecking the house - which is above and beyond what I was looking for. I never need to worry about rent being collected; and if tenants miss rent, the PM even files the eviction for me. Money hits my account every month and I don't have to worry about a thing. I say go for it. Good luck!

Hey guys! Anyone out there with experience and thoughts on the area just north of Indianapolis? I'm seeing a lot in the Kokomo area, but the fair market rents aren't necessarily lining up with the active open rentals I'm seeing. Would love to talk more to someone who is maybe already invested in this area!

Thanks :)

hey Mac! 

My two cents, which may be crazy different than other people's thoughts and opinions, is find out what's most important to you. For me, it was cash flow in a landlord friendly state. I work full time so I can't manage a flip and I didn't have the capital for a BRRRR, so I saved up 20% plus closing and took on a regular mortgage as if I was buying a second home for myself.

 I live in a state that's extremely tenant-friendly. You have more rights as a tenant in NY than almost anywhere else... that and property costs are insane! You can google any list of landlord friendly states and it'll give you a good starting point. Secondly, I wanted to make sure my first rental made enough money monthly that I could handle any change in the monthly payment. Honestly, I'm thankful I did. Taxes went up a couple dollars (as usual with rising values) and insurance actually went up more than I imagined, since obviously it "costs more" to replace a structure now with current supply/manufacturing/inflation changes. 

I narrowed down my list of landlord friendly states by looking at home prices vs rental rates. I wanted to make about $500 a month on my first rental so I just ran numbers til I came across viable options! Obviously interest rates were much lower a year ago, so it was much easier to make more money. Hopefully this gives you an idea where you can start.