All Forum Posts by: Roger Laughary

It's all about the cash flow and freedom from running it if you're nearing retirement. Period. Take your time and learn. Be careful. Find people that will teach you and expect nothing in return or partner up with you to do it well. They are on here. 

Hello All, I have been intrigued about the future profitability opportunities on this type of property and beginning to have an interest in the ins and outs of how to operate one with proper medical attention, liabilities, and operations details. Who would have some experience with this and where would you look to gain more knowledge on the subject? Thank you, Roger

Lots of people do it differently but here is mine: Rent is late on the 2nd, late fee of $50 on the 6th and 3 Day Notice to Vacate or Eviction on the 7th with $5 per day additional fee after the 6th. I don't mind collecting fees but if I have to send a 3 Day Notice once and they pay, I'd get them out once their lease is up. I've never had to issue a 3 Day (knock on wood) but I've gotten close. This has worked very well for me.

House hack. I wish I would have bought a multi family for my college house, or even a short-term SFH to eventually rent out. Conventional loan you'd only need 3.5% down possibly. That's a starting point. Good goal to start with I'd think.

Thank you Linda Weygant and Shane H. . It didn't make sense to me why he would do it that way because he is only aiming to buy and hold and he has a high paying W-2 job. I am in the same situation right now and I've had great tax benefits by incorporating as an LLC, and from what I've read LLC is almost always the way to go on passive income.

Welcome, Jared. Thank you for your service. WSU is a GREAT school to choose for Finance. I hope you enjoy Wichita. I am also here in Wichita and it is a great place to start your investing. 

I searched for detailed information regarding this before posting, but was hoping for some more distinct answers. 

I have 8 units right now in Kansas under one LLC and have a W-2 job. I also have several friends (some with around 15-20 and some with over 50 units) and the LLC seems to be the entity most have chosen after researching and getting legal advice. I do however know one person who chose an S Corp and she has probably 30-ish units. Many of these friends I know have similar situations, some though are completely self-employed with passive income and some have W-2 jobs as well. I don't see a rhyme or reason as to why someone with the same situation would go for an S Corp over an LLC or vice versa. All of these people are in Kansas.

One of my co-workers decided this month to buy a new residence and keep his old one as a rental. This would be his first rental property but he'd like more in the future. He spoke with his accountant and they suggested setting up an S Corp instead of an LLC, because there are some "long-term benefits" supposedly. They also told him passive income like rentals are better in an S Corp because you can carry over more business loss to your personal tax side to offset personal income. I haven't found anything to support this.

Could anyone provide some clarity as to why some CPA's and Attorneys say do LLC, and some S Corp?

@Paul Kennedy I know of a local lender here that does commercial loans, gives you 80% of purchase price plus 80% of repairs. They will have the appraisal called with the ARV, forced appreciation from the repairs, and refi cash-out up to 80% of the ARV appraisal once rented. For upgrades on long-term rentals, it makes sense because it helps with operating capital - you're eventually not using any of your own cash if you buy and rehab properly. This loan is a 5/1 ARM amoritized on 25 years, no balloon in between, still a low rate. It's the BRRR strategy they talk about on here a lot but there's no 6 month seasoning period to wait on the refi like several lenders. For most creative loan options, I would look to a local portfolio lender, try to get in with someone who can make decisions and has confidence in you. Hope this helps!

I have two tenants who consistently pay late, but they always pay the fee. Both are small families. One keeps the house very clean and the other is kind of trashy. Both are month to month now and I'll keep the one who's clean but I'm leaning towards eviction on the one who is trashy and doesn't take care of the property very well. 

3 months bank statements. Several lenders take that for auto loans. Why not for a lease?