All Forum Posts by: Reese W.

I have all my investment mortgages on auto pay with my personal checking account which I like because I have plenty of buffer and don't have to worry about shortages from vacancy loss etc. However I just purchased my first LLC which is attached to a group home I bought under my personal name and am wondering if I should pay the mortgage (conventional residential loan under my personal name) through the LLC's business checking account or I can just keep it on auto pay with my personal checking account. Also, any tax implications? Since my LLC is a single member pass through I imagine it doesn't matter.

Regarding LLC liability protection, that is not a factor because due to the nature of the business it's impossible to keep my name completely hidden, and I have umbrella insurance.

My plan is to use my roth for the down payment on a conventional loan, then replenish the roth loan with unseasoned cash well after closing (from investors or bitcoin liquidation).  Will the lender have any issues with this?

And for the unfamiliar, a "roth loan" isn't actually a loan, it's just a provision that lets you withdraw any roth money penalty-free, provided you return it within 60 days.  I'm not talking about the first time homebuyer option that gives you up to $10k.

Aren't vacancies, repairs, and cost of evictions all factored into cap rate though?  I'm examining the I&E and everything's in there.  So if a class D property is 9% cap after PM fees, lost rents, etc, it's still way better cash flow than my 4% cap single family class A? I just need to factor in extra headache.

I should also add that the property I'm considering currently has all HUD-VASH tenants (VA housing assistance pays the landlord directly)

In doing my research it seems that multifamily class C/D tends to have the best cap rate and cash on cash returns any way you look at it. From an investment standpoint it seems like a no brainer.  However a lot of the people I talk to say "ew I would never touch anything in that part of town" (including agents).  I'm not living there myself...and I have a property manager to handle evictions...so why not?  What's the down side, if my returns are better than the class A/B neighborhoods?

I'm under the impression that the notion you must get an LLC otherwise you will get personally sued and lose all your belongings is a bit of a wives tale, and Brandon has done some great talks about it (https://www.youtube.com/watch?v=9Ol2W8SE8b8). I personally have decent liability insurance on my properties ($500k) and my tenants are low-income with a property managing LLC between them and me, so I feel comfortable.  However, what do the hard facts say? Have you or someone you know ever lost a landlord lawsuit? All the guidance out there tells tenants that it's difficult and they must show the damages were due to a landlord or property manager WILLINGLY failing to safely maintain the property or carry out the rental agreement.  My research shows that the most common suits by far are over security deposits.  I'm ok with losing out on that $1000 if they really want to fight it in court.

Every article I read about an umbrella policy says the same thing...it covers lawsuits that go above normal liability limits. But what's never clear to me is, can an umbrella policy on my property be used to cover ANY lawsuit against my name? or only something that happens on that property itself? Do I need to get an umbrella policy on every property? I can't get one on one of my properties because I don't have insurance there (HOA has their own condominium policy) and it seems that they're only offered as an add-on.