All Forum Posts by: Philip Johnson

I don't have experience in this. I would assume since carpet is stain resistant and low-porous that it may be difficult to stain.  

Definitely get the AC in there if it's a nice neighborhood.  You'll attract better tenants and keep them longer with a lower electric bill.  The AC itself is only $1500 in parts. You'll still have duct work.  If you're a crazy DIY'er you could install it yourself.  Otherwise you're looking at 3-4K in labor + permits and possibly crane rental if you're putting it on a roof. If it's a C or D neighborhood with lots of window units, perhaps don't worry about it.  But Alabama gets hella hot and humid, so swamp coolers don't work.  If you do opt for window units, install ceiling fans in bedrooms.. 

 Thanks for the honest post! I had no idea that banks rarely try to call the loan. 

So, I will soon be approaching the ten property limit in my name. If I transfer some houses with loans to LLC's, would it open the door to get past the 10 property limit? All of mine are big banks with low interest rates which I would like to continue doing, properties in CA are expensive!

Does a Delaware LLC need to be created to act as a Trustee of the Delaware Statutory Trust ? If so, do you need to create business residency in Delaware? (Remote office)

Depending on your area they usually congregate on a sidewalk in proximity to the store but not immediately on it. Usually In The shade where they can hang out. Don't drive up to them they'll rush your car. It's best to walk up and bring one person aside to have a quiet chat. If they are not outside the store just in some areas they will come up to you inside the store. They do get there as early as store opening. Posting an ad on Craigslist for $3 is my preferred method though as you post the labor price and can screen people shortly through the phone. It puts you in a better position. Sometimes the home Depot people ask for higher labor rates and you don't have the time to qualify them. But it's definitely easy just to go to the store 

I haven't pulled trigger yet on out of state property but l far I have done much research... I learned to be weary of turnkeys but not t avoid them completely some are mighty tempting. Cash flow well but lose the depreciation tax benefits of rehabbing. It's good to know the big banks won't loan under $60 k. You have to go through a local credit union which is around 5 or 6 percent and the ones I've contacted all had ARMs no 30 year fixed.  In terms of not buying myself a deathtrap I decided it's best since it would be treading new waters to not buy sight unseen if it needs major rehab, but to be brave enough to make an offer and take a risk on ones that appear to be in D condition or better. Inspections in cheaper areas I imagine are much cheaper. I just laughed at a guy I. Humboldt who wanted $400 for an inspection! In LA it's $125 for a cheap one! So I imagine you can find a decent cheap inspector for under $100, and maybe even establish a relationship with that individual to do quick walk throughs prior to buying. What area are you looking in ?.

Get your first deal done. If you don't have any capital save up $10k and buy whatever you can afford with the 3 percent conventional down payment. Don't believe listings that say cash only if you make a good offer over asking they'll consider it. Put in sweat equity. Rinse and repeat. I've done one deal a year and am going for three this year. I started right where you are but later in life. Don't listen to the naysayers. When you're starting out it is helpful to maximize your leveraging for future cash outs. So buy the most you can afford but try to get at least $400 a month profit out of the property. All these things like ARV LTV etc are confusing. Just trying to figure out if the property can net $400 will tell you if it's worthwhile. Please vote for my post if it was helpful good luck !

Regarding properties: Thanks, so the Delaware statutory trust would contain my properties ? That sounds great. Since it's not an llc is that how to get away with the California law requiring any LLC doing business in california to pay the franchise tax board fee ? That sounds like we have the assets covered. I'll probably pm you.

Regarding rehab labor: Now for the potential LLC being established to pay employees helping with rehabs . I don't think there's any way around registering an llc in California and paying the $800 tax but if you do please let me know ♥️🤑 Would doing payroll etc through the LLC protect my assets properly? Would I be a member or member manager ? If it doesn't offer good enough protection since I'm getting workers compensation I don't know if there's even much risk.

 I am here to not pay $450/hr thanks Im a diyer 

The market is re-correcting.  Values plummetted shortly because of a spike of almost 1% in interest rates.  They have fallen to 20 month lows this week.  The market will likely re-correct updwards from this.  

I would refi immediately.  I just refi'd at 4.25 on a rental and probably will never be able to do that again.  Hopefully you're spending the cash on something worthwhile.  Don't forget to put the cashout in a high interest bearing account.  You don't need a CD.  Open an Ally Bank savings account or Capital one 360, they have 2 percent on savings and your money isn't tied up.  A $50,000 cash out at 2 percent is $83/m to you.  This will help cover a small amount of your loss in your rental income from the property you have refi'd.If this was helpful please like my post :) Good luck!