All Forum Posts by: Mohsin Mazhar

Hi everyone,

Looking for some advise.

I am thinking of selling my 2 rental properties and quit real estate investing (at least in current format). Due to stress of ownership.

I have 2 properties managed by a property manager. The PM is genuinely a good guy, responsive, good at resolving tenant issues. Provides good support, doesn't usually bother me unless it comes to expenses large expenses or rent adjustment.

The reason I am thinking of getting out of being a real estate investor is due to the stress and constant little expenses that are adding up. Recently there was a major plumbing problem at 1 of the single family homes and the tenants were not able to use the bathroom. Unfortunately the issue was so sever that it required for the tenants to move our for the repairs to be completed. I as the owner needed to approve for this to happen so the PM reached out to me for approval. I was genuinely stress out by this. Feeling bad for the renters who are unable to use the bathroom, fearing possible litigation (even if there is no reason to be sued, just an irrational fear)

The other issue is recurrent expenses although I have allocated 20% of rental income for both properties for repairs and maintenance. I have easily spent over that for both properties. Plumbers are crazy expensive, increasing city taxes, thinking if another issue is going to come up and I wont be getting the full rent to cover the mortgage. Using my personal finance to pay for repairs and numerous other small things that in isolation are not a big deal but they just keep adding up and create anxiety for me.

I am thinking being a real estate investor (for single family homes) is not right for me. I am debating if I should sell my 2 houses and just move the move into syndications or stock market. I am looking at my vanguard account and my portfolio is up 30% YTD with zero stress. RE for me is not my primary source of income I have regular job that pays well.

What are your guys thoughts. Is this something you have experienced as well, how did you deal with it? Does it get better or worse? How do you deal with the stress of ownership.

@Tony Savage

Thank for the comment Tony. This is exactly what I have been told as well about keeping the payments rolling and one should not have any issues. Because otherwise its becomes very difficult to manage these things.

Do you know if there are any tax implications from moving the property in and out of an LLC for a cash out refinance. And does the property go back into the same LLC?

Thank you for the replies.

What type of additional services can one expect? Are we talking about tax planning strategies?

Hello,

I was looking for some advice.

Background: I have 2 rentals, both are in my name right now, they are insured and I have an umbrella policy. 1 property is under a mortgage and the other I own free and clear. My strategy is to cont the BRRRR method. which involves refinancing as you know. The credit union with which I work does have a due on sale clause. But the loan officer I spoke with said they have no issue with me moving my properties into an LLC as long as I am paying the mortgage.

Because my plan is to purchase properties under my name and BRRRR them and then put them into an LLC the lawyer is advising me to keep them in my name and bulk up on insurance/umbrella policy in case of a law suit. His rational is that the due on sale clause creates risk.

Do you guys worry about the due on sale clause?

Thanks

Hello Everyone,

I am looking to get some idea about CPA expenses.

I recently switched to a new CPA. They charged me $1200 to file my taxes.

I am married with W2 income and 2 rental properties. What are your thoughts about the cost of the CPA services. Is this the going rate or am I overpaying. The experience of working with the CPA has been great easy to communicate. We live in the midwest.

hey, have you been able to get pricing on putting a property into a land trust, online I've seen people mention in 2-8k range. Which sounds a lot and I don't think it worth it

Hi guys,

Does anyone know how much it costs to set up a land trust.

I've learned that a land trust gives you anonymity and indirectly helps to protect your asset from creditors. But Can I not achieve it by having myself and another person on the deed and then putting it in an LLC. does this this not offer similar asset protection.

Thank you for your help in advance!

Hi guys. I’ve been trying to find an attorney in Michigan who could do a land trust but no luck. Does anyone have any recommendations. Also can an out of state attorney do a lab trust?

@Russell Brazil

Thanks

@Alex Bekeza

Thanks for the advice. That’s exactly what I ended up doing. Appreciate the help.