All Forum Posts by: Corey Reyment

Im not sure if this is legal but could you sell your house to your llc and then as your llc, rent to yourself? Im thinking of the tax advantages of this strategy and the write offs for home improvement projects etc.

Thank you so much @Ryan Ogilvie! We will check in to both!

We just called the county treasurer and asked for the tax-delinquent list. They sent us a HUGE list of names and addresses of properties that are tax-delinquent along with how much they owe and how long they have been delinquent for. That is what we are using for our first direct mail campaign. They charged us $50 but it was super easy and fast (they emailed us the list within days) and we are hoping there will be some motivated sellers in there :)

Hello and thank you for taking time to read this!

We are just getting into fixer-upper rentals and are wondering what is the smartest way to go about buying materials? I listened to a BP podcast last week with a guy who had a couple of Home Depot cards. He mentioned that they were the best customer service and offered great deals on mass products.

Wondering if anyone has a favorite credit-card that they use that offers rebates or good deals on products?

Thanks in advance!

@Cole Swartz , estimated ARV is $89,000. With that being said, it has been pretty difficult to estimate. We had to draw comps from more than a mile away, and they weren't great comps. We looked more to our realtor to figure out the estimated ARV, if that makes sense.

Seriously thank you x 1,000,000 @Penny Clark! We feel so fortunate to have our BP community looking out for us! I will definitely update you once we start screening! We don't close until July 28th which gives me time to get really organized!

Thank you @Penny Clark! I have recently listened to bp podcast 83 with Marcia Maynard about landlording and have printed out her phone interview questions to pre-screen tenants before showing them the property. Do you have any specific tips or secrets (besides of course calling references, checking their court records, etc) that have worked really well for you?!

Thank you Jordan and Scott for your input and your encouragement! We are currently absorbing as much knowledge as we can about landlording before we take over the property! @Scott Schultz shortly before finding this property we had the discussion about doing 15 year vs 30 year loans. We found a lot of good information on BP supporting both 15 and 30 year, and we agree that it is a purely personal preference based on goals and vision. We appreciate you supporting us in our decision!

So this our first deal and we just found out today our offer was accepted! We are in Green Bay, Wisconsin and put an offer in on a duplex on Friday. We found out today it was accepted! 

Here are the numbers:

Orig Listed: $99800

Dropped on 6.9.16: $89900

Offer accepted: $82500

Rent - $1400 ($700 per side)

Taxes - 2258/year

vacancy - 8%

cap ex - 10%

Repairs - 10%

Insurance - $50/month

Assuming a 30 year 5% interest rate, we are estimating cash flow at $437/month and a Cash on Cash at 17%. 

Tenants currently pay all utilities

Minor updating is needed in the bathroom and we are considering purchasing new ranges to update the look as they are outdated and old. Did we miss anything? 

We have a unique situation we are looking for advice on. My parents are getting their bank accounts levied by the irs for not paying their income taxes. They own their house and have gotten threatened by the irs that they will seize their home if they do not settle up with the irs soon. We arent sure why they dont just settle but we are also looking to help them while getting our real estate business started. We would like to take over as owners and keep them there as our "renters," although we wouldnt be charing them rent. We are in contact and awaiting a reply from a title company to see if there are any leins on the property. According to the county they live in, there are no leins. 

Our questions are, could we purchase the property from them for a very small dollar amount? Should we have them do seller financing for the amount they can gift us each year without further tax implications? Should we find someone who is not related to them purchase for a small dollar amount and then sell that property to us after? Are there any other strategies to help them be able to stay at their home and allow us to take over as owners without the irs charging a ton in taxes? Can they give us the property because of our family relationship? We are planning to have it appraised and use the equity to use as cash for future rental purchases.