All Forum Posts by: Dan Simpson

But what about the advantages of leaving the properties titled in an LLC? Do those advantages outweigh the benefits of being able to get a longer loan at a better rate?

I have a question about refinancing rental properties... I own 4 rentals which have balloon loans on them. All are about to expire, so I need to refi. 

I prefer to refinance on the secondary market which offers lower interest rates for investment properties and longer terms, but I was told by one lender that they can't refinance on the secondary market because the titles to the properties are held in my LLC, and not my own name. If the properties were in my own name, then they could do a 25 yr loan at around 5% interest rate up to 70-75% LTV

But instead, they are saying that because the properties are titled under my LLC, they can only do an in-house 5 yr balloon loan with a interest rate around 6%, amortized over 25 years.

Does this sound accurate? I find it hard to believe this, since most investors probably title their rentals under an LLC.

Valerie, I agree. That’s why I’m going to hire an inspector that is the most meticulous inspector I’ve ever seen before I buy it. He’ll find pretty much everything that could be wrong with the house so there won’t be surprises later 

Yep you’re right Fradel. I think the absolute necessary things are new flooring and paint inside and out, new light fixtures, some new interior doors (or just paint the old ones), new interior baseboard trim, 3 new exterior doors (change 2 sliders to French doors), siding installed on side of the house at least and maybe the back too, change out main front entrance door, new oven, rebuild the deck off master bedroom, and minor landscaping. I think I can get all that done for 25 grand at the most. Mainly just looking for ideas about exterior and interior colors and how to revamp that kitchen tastefully. 

So a realtor buddy of mine showed me this house today. He's found me two great houses previously that I bought before they went on the MLS and went for higher prices. I'm considering buying it but would love some advice on how to rehab it, especially the outside.

The background on this house, which I plan on flipping:

Built in 1965, the same people have owned it the entire time. The husband died, the lady is 92 yrs old and about to move in with her daughter. The clutter in the pics is her stuff, she is about to have an estate sale before the house sells

4 bedrooms, 2.5 baths, 2800 square feet, living room, formal dining, eat in kitchen, family room, nice yard that is about 6/10th of an acre, great area of high value housing

From the pics it is obvious that many things have never been updated in the 53 years the house has been around. The good news is that the roof and HVAC is relatively new and wont need to be messed with. The bad news is that it still has one of those old fuse breaker boxes and I suspect that much of the wiring and plumbing has never been updated. Will find out more if/when I get it inspected. 

I plan on getting rid of/painting over all of the brown wood paneling in this house, replacing all of the flooring, rebuilding that small deck off the master bedroom, some minor landscaping, replace the garage and front doors, replace exterior door under deck, replace all light fixtures, update the kitchen (keep cabinets and paint them white with new pulls), paint the outside and add siding to the right side and back of the house (front and other side has siding already), change out bathroom sinks and countertops, paint all the cabinets in each bathroom, perhaps install walk in shower in big bathroom that has the tub.

I plan on keeping the marble flooring in the entry way and try not to replace any windows. The two bedroom windows above the garage have some kind of diagonal strips on them but that comes off I think. The house in general is very solid structurally. No basement leaks, no cracks, etc

This would be a flip house that I can get for 160k. ARV is around 225k, at the least, could be at least 5-10k higher than that. The market is on fire and this particular area has appreciated in value as much as anywhere in the area in the last couple of years. Some houses within two or three blocks are selling for over 400k but they are newer. So there is a lot of room here to add value to this house.

So where I particularly need advice:

The outside... what is a good color scheme? Do I do anything with the windows? How should I rebuild the deck? I plan on adding two piers to each corner as right now it has none and the wood is rotting out. 

The kitchen... It has an island which I *think* is a good thing but not sure. Just need general advice on how to arrange the appliances, colors, flooring, etc. I plan on adding granite countertop as I have a great granite guy that can install it for less than 2 grand, all in. 

The bathrooms... Is it prudent to add a walk in shower in the bigger bathroom and remove the tub? If I do that there will be no tub in this house. Or keep the tub and paint it and ???

Anyway, thanks in advance for advice. I really want this house to pop and need as much input as I can get. Any and all ideas and suggestions welcome. 

Hey there Detarus, coincidentally or not, I just read about you in a basketball article, you're playing some Pro-Am at the Courts, right? And you've played some overseas? I'm a basketball junkie and I have two 12 yr old girls (they are two of a set of triplets) that play at the Courts.

I also read that you are into flipping houses. I just started that last October with a lot of help from Aaron Wyssman and I just met Aaron Bruenger yesterday. Great that we have a way to network.

I have personally done a couple of flips but am now switching to the buy and hold strategy. Or at least the buy and hold for at least a year for tax reasons and then flip strategy lol.

Let me know if you'd like to meet up, I can come out to the Courts and watch some Pro Am some night and then we could meet.

Thanks for the input! Exactly what I was looking for...

This is going to be a flip house, David. 

Changing the front door is a great idea, as is the grey color idea. The house immediately across the street recently got an exterior remodel and they used grey siding.

So I have a house under contract and from the first time I've seen it, I've been pondering what to do to the front of it to make it stand out better. So I'm posting here to see what ideas any of you may have. Here is the pic... Open to anything, changing out the windows to a different style, different color siding, different shutters, different landscaping, etc.

Thanks in advance for any suggestions!

I'm new to the real estate game, about to flip my first two properties and expect to clear around 50k combined on them. Is it a good idea from a tax standpoint to use the profits to put down towards a new personal home?

What other ways are there to minimize the capital gains tax? I have an LLC that I use to take title of the properties.

Sorry if my questions are too vague, but thanks in advance for your help

I recently ((Oct 2015) started investing in RE and formed an LLC. I have bought two houses that I am going to flip. Both are currently on the market.

The first house consisted of a lot of fix up, much of it done by me. I have kept a spreadsheet consisting of all expenses. Materials, labor paid to people who also worked on the house, miles driven, etc.

My question is - and this may seen like a naive newbie question - can I use this to help save money on my taxes? I can't show any income for the LLC because I haven't sold a house yet (and obviously not in the year 2015) but I do have a spreadsheet of expenses. Will this do me any good when I go in to do my taxes for 2015?

Thanks!