All Forum Posts by: Sunny A.

Thanks Basit!

I'm also based in the Bay Area and looking for a CPA. Would greatly appreciate any recommendations made via PMs above

Reading about placing each property in a separate LLC. What are the implications for a CA resident owning out of state properties, each in a separate LLC? 1. Is this a recommended approach? 2. Would I have to pay only $800 in CA franchise taxes, or $800 x number of LLCs?

Thank you all for the advice!

Hello,

I’m looking to invest out of state. Below is a list of questions I’d like to get advice on to determine how best to proceed. Would appreciate any feedback!

1. Should I incorporate in the state I will own and rent the property in as a single member LLC? Or should I operate as a sole proprietor and get an umbrella insurance policy instead?

2. Will I have to additionally pay CA franchise tax of $800 / year?

3. Should the property deed be under my name, or if incorporating under the LLC?

4. I would like to do a cash out refi after seasoning the property (BRRR).

a. Should I own the loan in my name, or if incorporating, in the LLC's name?

b. Can I count refi mortgage interest as a business expense?

c. Are there any limits on the interest deductions (e.g., due to new Trump tax plan)?

5. Should I deduct depreciation?

6. Can I treat property tax as a business expense? Is there any limit due to new Trump tax plan?

7. Will I be double-taxed on rental income by CA and by the state where I own the rental property?

8. Anyone know a good lawyer and CPA in the Bay Area who would be able to help me with:

a. Forming an LLC if necessary

b. Navigating contracts with out of state property purchases and out of state property management

c. Accounting and filing taxes

Many thanks!

@Michael Hastings you read my mind exactly. Thanks for the advice, I'll do some research

Thanks Maria,

The core issue I was trying to get at is that properties in the Bay Area generally don't cash flow well (as opposed to other markets, e.g., the Midwest).

Given the cost of owning a property here, is it net-net better to just rent, or buy a multi-family and live in 1 unit (i.e., house-hack)?

Ideally I could find a place to house hack and essentially live for free, but I'm not sure how to go about it. Thus I was asking for suggestions on how to go about finding such properties.

Hello everyone,

I'm an out-of-state investor looking to meet folks that are local to Indianapolis, as I constantly hear about great cash flow opportunities. Generally speaking, my goals are to:

1. Get to know each other and understand how we can help each other

2. Develop trust and an ongoing relationship

3. Identify and go in on investment opportunities together (I'm a fan of BRRRR, but generally won't be boots on the ground in Indianapolis)

4. Put processes in place so that we can scale quickly, including a lean & effective marketing machine & great property management

Please reach out to me if this sounds like something you'd be interested in collaborating with me on.

Cheers

Hello everyone,

I've read a few posts on the housing market here in the Bay Area. Given how hot it is, would you recommend:

1. House hacking

2. Renting

If you recommend house hacking, how do you go about finding deals in the Bay? That is, if you were to rent out all units in the multi-family, the numbers would make sense from a cash flow perspective.

Turned out to be a sales pitch for some company called Renatus--waste of time. Still glad I went, now I know when to do a 180 at the door next time.