All Forum Posts by: Rachel Simpson

Hi all. I am analyzing a deal that is outside my comfort zone and I am very much in my head and overthinking it. I am hoping for insight from more experienced investors.I currently invest in a class C (probably C-) area that provides fantastic cashflow but will likely not appreciate as well as other markets. 

I have the opportunity to purchase a duplex (Class B neighborhood) in an area that is seeing job growth and with steady increase in both rents and real estate prices. Professionals/ hospitality workers are moving to the area as they are being priced out of the nearby tourist areas where they work. It is also near a large naval base that is going to be adding more jobs, as well. Large development of very nice single family homes being planned for in that area. 

Here is the catch. Right now, it will cashflow MAYBE $50 a month when considering capex, maintenance, etc (Thank you, interest rates). It would be an appreciation buy, mostly. INSIGHT PLEASE! I feel like I need a property like this to balance out my doors in a less savory market.

Good catch! We were considering a 50/50 to make things simple, but would prefer a 25/75 partnership. I should have left the ratio out of the subject. Either way I am thinking it would be structured the same way, but with a different ratio specified. This is great info about how the actual loan should be structured. When I spoke to my lender he had suggested I get a mortgage in my name and then quitclaim into the name of the LLC. It sounded simple so hopefully that was sound advice.

Great post. I find myself having the same issue! Hopefully someone can shed some light on this.

Hello all-

This is my first post and I am floored by the knowledge here, so I am hoping I can get some solid and helpful answers! I already own two duplexes on my own which I hold in an LLC. I am looking to purchase a few properties with a family member. We have partnered before as they hold a mortgage for one of my existing properties. Things are going well with that.

To keep things simple for these new investments, the plan is to split costs 25/75. They will put 25% down and I will finance the rest. We will continue that pattern with all expenses (repairs, taxes, etc) to keep things simple. All owner draws will also be paid out in that ratio. My question is: what entity is best for holding these assets? We are thinking about a multimember LLC with 25% 75% split ownership written into the operating agreement. Does anyone have information for or against this plan? Open to all suggestions.

Thank you!