All Forum Posts by: Randall Degges

Bump! Would love to know if any of you have an opinion ^^

Thanks @Jeb Brilliant and everyone else. I decided not to move forward this purchased based on the feedback here. I appreciate the help. Y'all have been amazing.

Hi there!

I'm a new REI and am closing on my first rental property (a SFH) today. I'm also closing on another in a few weeks. I'm planning to acquire 20 properties over the next year and a half or so and have funds set aside for it.

The properties I'm purchasing are all turn-key, and all have tenants in place and are post-rehab.

I'm financing these properties at 20% - 25% each, 10 will be in my name, and 10 in my wife's name. My plan is to take all cash flow from the properties and use it to aggressively pay down the loan with the least balance, eventually owning them all free-and-clear.

With that said, I'd like to structure this in as simple a way as possible. Right now, I'm only purchasing homes in Indianapolis, so I created an LLC in Indiana for holding properties. I live in CA. I went ahead and created a business checking account for the LLC, and my goal is to keep the expenses/revenues/etc. as separate from my personal as possible to make things easy to track (and for tax time).

Here are my questions:

- What sort of software should I be using to keep track of these properties? Right now I have everything in a spreadsheet, but that seems like it won't scale very well and might become a lot of work. All of these properties will be under one property manager (so far), if that makes a difference.

- Even though these houses will be in my name or my wife's name (and not the business), can I pay for expenses from my business account and treat the homes like business assets, even though I'm technically the owner and not the business?

- Should I attempt to transfer the title of the homes into the company's name after the loans are seasoned? Or is this a bad idea? I know that a bank can call the note if this happens, but I'm wondering what other people do.

- Should I find a bookkeeper to help keep track of expenses in the business (repairs, etc.)? Or is this something the property manager will typically do, since they're tracking those things anyway? My current PM uses AppFolio, if that makes a difference.

Thank you for the guidance!

Hey! Ya, I'd love to know who your inspector is! I went on Yelp and got an inspection from Indy Pro Inspection (and they were great so far), but always open to other great people =D 

Hey @Mihir, this one is an all-cash purchase, which is why I was looking for an independent appraiser to do the job. 

Thanks for all the help.

I'm likely going to see this one through (it's part of me trying to diversify my holdings), although I will say that I probably won't be purchasing any other places in the nearby area. My other homes are in better areas, so hopefully things work out OK.

I'm planning to post a yearly update with how things go, so I'll keep y'all appraised! Thank you.

Thanks for all the opinions, everyone. I appreciate them.

I'm a new REI, so not every experienced. This is my third turnkey purchase with Norada. Since a lot of you provided extra info, I'll provide more context as well:

- I'm out of state, investing in Indianapolis. My goal is to pick up 5 SFHs there.

- I'm under contract on 3 places right now: one is an A class in a great area, another is a solid B+ in a decent area, and this one is a lower-income one which was pitched to me as a B-

- The purchase prices of the 3 homes I'm under contract with are pretty variable: 147k, 127k, and 70k

My goal with these purchases is to build a small portfolio of homes across slightly different neighborhood/risk types. Does that make sense?

It's been fully renovated: new driveway, new interiors, extensive remodeling. It's via a turnkey provider. Already went through inspections, etc. Looks great!

Sure!

The address is 9961 Ellis Dr, Indianapolis, IN. Here's the Google Maps view: https://www.google.com/maps/place/9961+Ellis+Dr,+I...

The price is $70k.

Hi all!

I've been working with a turnkey provider to purchase my first few rental properties. I have 3 under contract right now, and two of them are wrapping up the closing process towards the end of next week it looks like.

One of the properties is good to go, financing is all locked down, appraisal/inspection is done, etc.

But... With the other property, my lender never ordered an appraisal and now that closing is happening soon I'm freaking out.

Can someone recommend an appraiser in Indianapolis who can quickly turnaround an appraisal report that I can use to make sure I'm not overpaying here? Originally I was assuming the lender would do it just like they did for the first one, but I haven't heard back :x

Any advice is greatly appreciated!