All Forum Posts by: Stetson Oates

Your LLC's GL policy is the first line of defense, the LLC's Umbrella is the second, the LLC is the third. As Ty said above holding each property in its own LLC limits liability significantly, however it can be difficult to manage and maintain the corporate vail by keeping each LLC's finances separate.

Quote from @Bob Stevens:

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

 Well, the smart thing to do is both. Have rentals and also flip. The biggest mistake of my life was not keeping 50 or so more of the 500ish I flipped, MASSIVE mistake. Wealth is built not flipped. 

BTW I would never buy a property that does not cash flow less then 15% . All mine avg 15- 25% NET per year, based on cash purchase. If you are 100% counting on appreciation, well, that does not sit well with me, NOT saying its wrong just not for me. I like a check the following month after I close. 

All the best 

Wow these numbers are nuts. I buy all cash most of the time and 25% is outstanding. I've never been close to that.

This is a great discussion. I think strategies change as time goes on and markets change. Right now I'm guessing the best strategy is to eliminate debt thats 5% interest or more. My personal strategy is to use debt responsibly and scale. 50% LTV or less is what I like to do.

I use Turbo Tenant and it’s free functions will do most of what you need. It does have a subscription plan that can give you additional functions. If I get a few more units I may upgrade to the pay version.  It will track expenses, collect rent, track payments, screen tenants etc…. With the free version.

I think you may have received some bad info. I invest in Oklahoma City and haven’t heard this before.  

Ouch, I hate that this happened.  Id be upset too.  I think the best move would be, get this property in top shape while you are fixing other issues.  Make sure everything is in great condition, then find a tenant worthy to rent it. I think in time it will make you whole again. Then I would have a conversation with the seller, then move on.  It's a lesson learned, but you turned lemons into lemonade.  I'd be really upset too, people are disappointing sometimes.

Hello,

Sorry for the issues you are having.  I will say for HVAC units,  sometimes it depends on the contractor you are using.  I've had contractors come to my properties and tell me I need an entire new system at a cost of $6,000.  At that point I remembered I had a home warranty policy.  I placed a claim, and the tech came and replaced a capacitor for $75. I got the tech's contact information and used him on all properties. He ended up being a fantastic contact for me.

Quote from @Leroy K. Williams:

Hi Melissa,

if a tenant has occupied your home for 3 years you should expect that at the point you are turning it over to a new tenant there will be something needed besides light cleaning.  If they have not hit the previous PM with maintenance calls you should look at the $4,000 as deferred maintenance.  Even in the best scenario you would have spent $1,500-$2,000 to update the smoke detectors and C02 testers, cleaned the carpet, re-glaze the bathtub, update any leaks and light paint and wall repairs.  

Going after a tenant who paid for 3 years on time is extreme. Move on.  Someone should have done a better job of inspecting prior to returning the security deposit. 

When you turn over the property some expenses are to be expected.  If they harmed the property with actual damage I would immediately demand payment, send to collections, and file a lawsuit in SC court.  You will never see the money but at least they will not be able to hurt another landlord this way.  

There's a lot to unpack there I think.  This is a viable strategy as I almost did this my self.  I ended up going a different route but this is as good of strategy as any depending on the terms on the SBLOC. Betting on appreciation for the recapture of initial funds in this market with a refi may put you negative cash flow. I would keep that in mind.

My question would be about recourse on the initial lender who foreclosed. Is there no requirement to identify other lending institutions?