All Forum Posts by: N/A N/A

My wife and I have accumulated four rental properties and hope to acquire many more in the future. I've been giving conflicting advice on liability coverage. Some have advised to form a LLC. Others have recommended forming a sub chapter S corporation. And others have recommended just purchasing an umbrella policy, stating that it'll serve as the same function as the former two, without the added expense of the &200.00 annual filing fee for the sub chapter S. Please advise.

I'm also an investor from California. It appears that just about everything in CA is overpriced. Very hard to get good deals on undervalued properties. In the past year, I 've focused on out of state properties and have found theere to be better cash flow and appreciation. I was skeptical at first becuase of the out of state thing, then someone recommended getting a property manager for peace of mind. That was the best thing I could have done. Yes it does cut into my profits, however, i do still have positive cahsflow, minus the worries. Something thats no longer possible in CA. Good luck.

I'm getting ready to purchase a four plex and was set to acquire a 30 yr. fixed rate loan. A mortgage broker is trying to convince me to acquire an interest only loan stating that I can leverage my money best that way. Here's the two scenarios he gave me.

Scenario #1
I put down 85k on a 375k property. 30 yr. fixed at 6.9% at 1point and 1% origination fee. My monthly payment would be approximately $2450.00 impounded.

Scenario #2
I put down 39k on a 375k property. Interest only loan. Monthly payment $2400.00.

Lender states that scenario two is better because I can leverage my mony best and purchase another property as opposed to just one.

Is this guy just trying to make a bigger commision or is he correct in his thinking?

Multi tenant building are great investments. I own three, two duplexes and one fourplex. The great thing about them is cashflow. If you have a vacancy, your still collecting rents from the other units. In essance, your not ending up having to foot the entire mortgae. A bit of advice, If your going to build a duplex, you should build a four plex. Takes the same amount of land

The problem with pulling out a home eqity loan on your house to puchase another property in now your stuck with two mortgages. The home eqhity loan as well as your primary residence. Too make matters worse, if your new property that you purchased is at a negative, your losing there as well. The only way this would be able to be pulled off is in a highly appreciated market.

What and where is the best place to invest $85k in real estate? Any credence to Utah?

I've been told investing out of state is insane because using a property manager eats up all your proficts, particularly, when you have to fill a vacancy. Any truth to this?

I live in California and am thinking about investing in a fourplex in Utah? My fear is my responsiveness to the rental. I've been told to hire a property manager, however, they can suck up much of the profit. Those of you whove invested outside of your state, what has been your experiences?

I am a relatively rookie investor and have 80k to invest, possibly in a four plex. I've been hearing that Utah has great CAP rates and good appreciation. I live in California and everything is overvalued. It's nearly impossible to get great deals anymore. What other states are good to invest in four plexes where I could have a decent positive cashflow?