All Forum Posts by: Ross Alcorn

Investment Info:

Townhouse buy & hold investment in Abbeville.

Purchase price: $515,000
Cash invested: $26,500

3 Bed/ 2.5 Bath 1850 Square Foot new build townhouse in appreciating area of Charlotte. House Hack strategy.

How did you find this deal and how did you negotiate it?

On MLS, Zillow and through instagram. Walked another townhouse up the street and drove by these. They were listed at 25K less and when they dropped on Zillow we came and took a tour.

We had the seller cover all closing costs, pushed out closing 60 days, and were able to use that to cover all closing costs and do a rate buy down for a year.

How did you finance this deal?

30 year conventional loan

I purchased a home in my primary name as a house hack 2 1/2 years ago and now am moving into another property and using this home as a rental. I would like to quit claim deed this property into a recently formed LLC for liability protection. In the past on a different property I've called the lender and confirmed it is okay to do this in order to not have a due on sale clause prior to quit claim deeding it into an LLC.

I've heard sometimes the lender will say you must refinance into your LLC in order to quit claim deed it to not trigger the due on sale clause. My main reasoning for the quit claim deed is to have an extra layer of liability protection for assets. I don't want to have to refinance due to a very low interest rate on this property.

Are there other suggestions if quit claim deeding this isn't an option? 
I already have an umbrella policy so not sure if upping that premium or moving it into any sort of trust/land trust or something else would be a smart move. 

Appreciate the help in advance!

I've been in the medium term rental market over the past year helping property manage 1 MTR and most recently purchased another that just went into service with another going into service in March 2024 when I move that I'm currently house hacking. Furnished Finder, Zillow, FB Groups, and Air B n B have been great platforms for bookings and to drive traffic.

I've been using some of Jesse Vasquez's best practices around calling, messaging, and emailing un matched leads on FF for a bit now with not a ton of luck. We are starting to list on other sites like landing, apartments.com, booking.com, blueground, and furnished quarters to drive more awareness. With rates being higher, eating at some of the cash flow, and more competition moving into the STR/MTR market, I'm looking to build relationships with some of these agencies. I've reached out to a lot of recruiters at healthcare staffing agencies on LinkedIn and on their site haven't had much luck over the past year either. This is coming from someone who's been in healthcare sales the past 9 years and know's it's a long game but want to ensure I'm targeting the right persona's vs. running into dead ends because I'm targeting the wrong people.

If anyone has guidance of websites to apply or companies to search on LinkedIn around insurance agencies, corporate housing providers, recruiting agencies, or construction companies, any guidance would be appreciated. 

On a side note, if you're local in Charlotte and focus on the MTR market or looking to get started let's connect!

I currently work with a tax advisor and strategist but am looking for a CPA who can help around taxes. I currently am a W2 employee with 4 properties in my portfolio and looking to continue to purchase more. Need someone who can give advice and work with strategies for high earning W2 employees who also are moving into partnerships with a few LLC's. Right now the portfolio is based around residential but the future plan is to have residential and commercial so experience in both is preferred. If local in Charlotte, that would be a bonus.

Does anyone have any recommendations for banks that do HELOC's on investment properties at interest only? I've used two separate good products for my primary homes in the past but looking at potential options for an investment property to compare possible options for a next purchase. I've found one but they only do a max loan up to 100K on investment properties.

@Allen Duan thank you! 

I am looking at purchasing my first MTR and running comps but want to make sure I have my insurance numbers right. I've reached out to my insurance broker and let them know of my MTR strategy. They said anything from 0 to 6 months, I'll need STR insurance for my property which will cost 25-50% more than landlord insurance.

I am looking at 2 bd/2ba condo's, so being a condo it won't be crazy expensive but also knowing I could get tenants that could be on longer term 6-9 month leases with my MTR strategy, I'm wondering will landlord insurance suffice or with STR insurance be needed. I'm looking into Steadily, Proper, and Foremost to see what they offer too but wondering if there is any product or talks of a product that would fit the MTR strategy for a 30+ day stay that isn't only the landlord insurance long term policy.

I am looking a air b n bing my primary residence for when I travel away on long weekend trips, week long trips, and sometimes even 30+ day trips. I am curious if people who do this with their primary residence that they live in have best practices for keeping your personal stuff away while not needing to get a storage unit. 

It would also be good to know if anything else to be aware of when starting to do this. Appreciate any insights on this topic!

I'm wondering if it makes sense to do a cost segregation study if I'm a W2 employee and don't have REPS. I would be looking to do this for a townhome that became a rental in 2021 but I don't foresee myself moving into REPS within the next 3-5 years. From what I've read it only can offset your passive income if you don't aren't a real estate professional. Looking for some advice here if it makes sense to complete a cost segregation study at this point in time.

@Julio Gonzalez thank you for this valuable insight!