All Forum Posts by: Rob Beland

Very creative responses but the simple answer is no. You would be paying yourself and the IRS does not allow you to create a taxable event with yourself. It's all your money. It's your LLC which is a pass-through entity and basically doesn't exist in the eyes of the IRS.

Just focus on total expenses. I see no reason to segregate property taxes or any other specific expense. You could look at total expenses as a ratio to total rents. 

Give them 12% interest on their money.  Keep the equity for yourself... They aren't getting 12% from their credit union are they?

If you have already closed then you now have a tenant.  You should start the eviction process immediately. If you haven't closed yet, don't close until the tenant has vacated. This will not likely end well for you. Good luck @Pooja Gupta

Typically the addendum gives you the option of having an inspection done. It doesn't mean you have to do the inspection and it shouldn't require any specific licensing. You could have a friend that is a contractor walk through with you or you could do it yourself if you have experience. I've never seen a requirement that you hire a specific professional.

Hope this helps @Steven Turner

Are you asking if a landlord managing his own properties makes more money than a landlord who hires a property manager? The landlord who manages his own properties doesn't have to pay a property manager so all things being equal, the experienced out of town landlord makes more money. It really doesn't matter who the tenants are. 

You need to check your local zoning ordinance to determine whether or not you can legally convert the property into a duplex. Also, you need to be sure your lender is on board. The conversion could be in violation of your mortgage. Lastly, you need to make sure your insurance company adjusts the policy so you are insuring the property as a duplex. Assuming you have the proper permits and your lender is on board, in the event of a fire, your insurance company will cover the loss as a duplex. What you rebuild is up to you assume you pay off your mortgage. 

I don't think its necessary. Just make some money on a couple deals and take some time learning about your specific needs and what you are really protecting with the LLC. Look into a strong liability insurance policy. Take an inventory of your assets/cash/real estate holdings and determine your net worth. This is your exposure in the event you are sued.

Good luck @Alfredo O.

what about water/sewer, any common meters? Do you have an agent representing you in that market? You should. They can run comps and verify rents. They know the area. 

Hi @Janie Vowles!