All Forum Posts by: Mike Dymski

 Got it, thanks. Another $0.20 sqft to ship it.

 Thanks Curtis. Where did you find Shaw New Market 6 for $1.13? It's higher at my local flooring companies.

Sounds like I need to find the installation contractors rather than speaking with flooring companies. Maybe I'll call some property managers and see if they will share who they are using.

Do you mind sharing the product and store? I am looking at glue down LVP as well and it's $2.90/ft installed (excluding floor prep, molding, moving appliances and toilets, etc.). If I could find $1.60/ft, I'd do all my units in it. My apartments rent for $575/mth; so, at $2.90/ft plus all those extras, it's close to 3x carpet price and getting hard to justify.

Hey Jason, I am learning that I can have the LLC listed as the primary insured on a "landlord" type personal policy to be able to keep my name off it. I believe that is what you are saying as well. That makes me more comfortable from a corporate veil standpoint than having me as the primary insured or both me and the LLC listed. I also understand that a commercial umbrella can cover a landlord (i.e. not commercial) policy as long as the landlord policy is in an LLC name. Anyone, feel free to shoot holes in my conclusions here...learning the ropes.

Lots of good threads on flooring on BP but have not seen much on the glue down LVP. Flooring company is recommending it for my 25 unit apartment. It's my understanding that is the common application, rather than floating, in commercial buildings and much multifamily. Anyone have experience with it or know what you do with it at the end of it's life (i.e. how costly it is to remove)? The product is Shaw New Market 6 (mil).

I wish I knew more about historic cash-on-cash returns for C class apartments. I know the market is hot right now and cap rates are compressed but with low interest rates, it may or may not still be a good time to invest. I have a 25 unit apartment, 2 duplexes and a single family home. I am blessed to own the duplexes and single family home free and clear and debating about borrowing on them to fund another apartment. There are 20 units for sale in my existing complex where I can get approximately 10% cap, 21% cash-on-cash and 27% NOI less interest (I call this IRR). That seems good regardless of region or market conditions. Let me know if anyone has historic statistics or experience with C class cash-on-cash returns in the southeast to provide a benchmark. I am switching from flipping homes to holding multifamily...need something more passive; so, I am getting up to speed on this space in the market. I'd feel better about buying in a hot market if I had some perspective on cash-on-cash expectations in a normal market. My guess is that I am looking at properties and in markets that are not that susceptible to large swings, good or bad, and the returns above illustrate that statement.

Thanks. The intent of getting a commercial policy would be to remove my personal name to improve the protection of my personal assets that are not in the LLC. That's the advice I am getting from a new potential agent. The less stuff (bank accounts, loan, insurance policy, management, etc.) that is in your name, the better your personal assets are protected.

I am considering transferring 2 duplexes and a home into an LLC. My insurance agent said we would add the LLC to the existing landlord policies. I had another agent say that I will not want my name on the policy and he would put the property/LLC in a commercial policy. A commercial policy sounds more logical in preserving the corporate veil. What is best practice? Thanks in advance for the help. I have a 25 unit apartment complex in a separate LLC with a commercial policy, if that matters.

Thanks for your feedback...hopefully we will have more. It's great that we have replies from both attorneys and insurance agents and the attorney is in favor of LLC and insurance agents can get comfortable with just using a personal umbrella. I think that gets to the heart of why there is ambiguity and debate on this subject. I spoke with my company's general counsel after my post and he mentioned two benefits of the LLC that resonated best with me (1) insurance companies can find reasons to deny claims (2) the catastrophic claim we mentioned above. He almost seemed to find more protection in an LLC than an insurance policy. Maybe insurance agent's and attorney's perspectives are driven by what is in their wheelhouse. Another option is to put financing on the duplexes/home while it is in my personal name and then move it to an LLC afterwards. That leaves a chink in the LLC armor but is more protection than without the LLC (and may create a due on sale for the mortgage, that many investors ignore)...many people do this with their primary residence and deed the home to their non-working spouse. Anyway, I will be on the lookout for additional replies.