All Forum Posts by: Rudolph T.

@Sean Ploskina

I have the same exact question James had. I initially have some properties in FL in my name, then I transferred them to LLC but the loans are still in my name. So, is it still easier to refinance if the loan is in your name but ownership in LLC? I thought the lender would still want to confirm and verify the name of the loan indeed matches to the deeds of the properties.

In your experience, are you not encountering any refinancing issues since you have all your properties in LLC? (not sure if you had to refinance some of your properties)

Thank you!

RT

My fellow BPs, 

I have several properties under an LLC owned by a holding LLC. I ultimately own the holding LLC. My question is how difficult is it to refinance these properties? What requirements would lenders look for to approve the loan? Thank you

RT

@Eddie Salem, thank you Eddie for your advice. Do you think this is county's negligence or the previous owner's responsibility to pay for the tax? 

Here''s my situation. I purchased a rental property in FL in late August 2019. The property was brand-new built in mid 2018 but evidently was not fully completed in the inside of the house (for whatever reason) until 8/2019. So the certificate of occupancy was not issued until early 8/2019. When I purchased the property in 8/2019, the house hasn't been appraised by the local tax appraisal office, so during closing, no property tax was due on the the building, only the tax on the land. 

The tax appraisal office finally appraised the property in 9/2019. In 11/2019, I received a letter from the tax appraisal office saying I owe a lump sum of property tax for the entire year of 2019. They did not prorate the tax for me from 8/2019 to 12/2019 since I purchased this property in late 8/2019. This really put a lot of strain on my cashflow since I have to pay the entire year of property tax in 2019.

Here's my question:

1. Isn't it the previous owner's responsibility to pay for the property tax from 1/2019 to 8/2019? I did not own this property during this time. Why do I have to pay for the property tax for a house I did not own? My property tax for 2019 should be prorated starting the time at which I purchased the property. 

2. The previous owner is trying to argue they are not responsible for it because the house did not have the certificate of occupancy until 8/2019. The tax appraisal office argues the house is physically built already since the beginning of the year, so they have to apply the tax starting 1/2019. 

I'm totally confused. I need help on advice from BP colleagues. I want to make this as simple as possible because I already spent too much time trying to figure this out!

Thank you in advance for your advice!

@Diego Zambrano What did the bank tell you when you called them? Would they make you pay the due-on-sale clause? I'm on the same boat and not sure if I should call my bank or not. I heard people mentioned don't tell the bank at all. I'm not sure what's the right way of doing this

Thank you @Charles Carillo and @Kiera Underwood for the response. Kiera, do you find it saves you money in the long run? I haven’t done my research on the cost of Home Warranty. If it only costs $500 per year, it certainly would save me money since I already spent $2K. I certainly hear what Charles recommends to not get the home warranty. Trying to be very careful. 

Dear my fellow BiggerPockets, 

I purchased a rental house 2 years ago, and it was built in 2007. It has required fair amount of repairs and maintenance cost to me, resulting in reducing my monthly cash flow significantly. Last year it costs about $10K and this year so far has costed me $2K. My question: is it advisable to get Home Warranty Insurance? To reduce my repair costs?  Or if this is not advisable, what are my options?

I appreciate in advance for your help

RT

@Charles D Southwick Thank you Charles for the insight. I will look into Twin Falls area too. 

@Roy Muller how do I get off market deals? 

Thank you all for the insights. 

@Matthew Baltzell I'm looking for cash flow at least $300 per month with cash-on-cash ROI >10%. Duplexes/quads are better. Also I prefer a market with good appreciation rates but with affordable properties (my budget is <400k) I'm having a hard time of finding duplexes in Boise on my search and this was confirmed by @Matthew McNeil. The numbers I crunched so far yielded not so good cash flow. Perhaps I should look elsewhere..

Dear my fellow BPs, 

I'm planning to invest in a duplex/multifamily home in Boise, ID market.  I heard that it's a booming market and lots of people flocking to this area. However, I couldn't seem to find good deals in this city. Anybody has any insights in this market?