All Forum Posts by: Jane Ng

I ended up finding a market closer to home. I have heard you can find people local to furnish for you, which many people do, but I personally wanted to do it myself... Good luck!

@Christopher Smith I agree with you. I don't understand how such a large company gets away with setting up this kind of structure for thousands of investors (they claim).

Do you own properties out of state? If so - do you mind if I ask how you structured your business? Thanks in advance!

Are there any CA investors investing out of state that structured their business with Anderson? I've had a few intro calls with them and they propose the following:

- WY LLC that acts as a Holding Company

- Create multiple LLCs under the Holding Company

- NOTE: this is different from a Series LLC

They claim that since your information will NOT be on the WY LLC Holding Company (for anonymity) and each LLC is a disregarded entity under the Holding Company, and therefore, doesn't file a tax return, you do NOT register any of these LLC's in the state of CA. Therefore, you don't pay the $800 CA Franchise Tax. My CPA obviously doesn't agree with this, but Anderson is a large company so I'm sure there are thousands of CA based investors who do this.

I personally think this is shady, but wanted to get other opinions.

On a side note - if you live in CA but invest in multiple properties out of state, how have you structured your LLC?

@Leora Merrell Wow you took all 5 kids with you?? You are super mom! I am trying my best to furnish it without being there, but if that's not a good option then looks like I'll have to figure out a way to get there alone... The cleaning lady I'm planning on using did offer to be there to set up but I would have to purchase/design everything, which isn't a bad option.

Thanks for all your insight!

@Michael Baum - I'm looking at a 1 or 2 bedroom in Hot Springs, AR. I totally wish I could go, but I have three little kids, one of which is special needs, so it's hard for me to be gone for more than 1-2 days. If I were to go, I feel like I'd need at least a week to purchase and set everything up. 

How has managing remotely worked for you? I was initially considering a third party like Evolve, but feel like I could get more bookings managing it direct.

Hi everyone! I'm considering a short term rental property out of state. I won't be able to travel there to furnish it. I've spoken to a few stagers but they are WAY too pricey. Any thoughts or ideas on how I can furnish a property out of state without spending a fortune? Thanks in advance!

@Julie Hartman my PM wants to wait until we secure a new tenant to include those months of lost rent (between the time we evicted the tenant and a new tenant moves in) since the evicted tenant's lease was through April 2021. 

What is your success rate with your collection's agency? Anything I can do, as an owner, to increase chances of collection?

I evicted a tenant in Oct for multiple lease violations, including non payment of rent. My PM says once the property is re-leased, they will send the evicted tenant's outstanding balance to a collection agency, but the chances of getting that money back seem slim.

What have other landlord's / PM's done to get some of their money back after an eviction? I am an out of state investor so I can't physically take them to small claims court. 

I've had a tenant in this property for 2.5 months and they are requesting sod in the yard. This property had some minor flooding issues 6 months ago, so we put in a drainage system + river sand in the yard to prevent water from getting to the house. The tenant is complaining that the sand gets muddy and their dog brings it into the house, and therefore is requesting sod. I feel like this is a valid request and am happy to put sod in the yard.

When you've had these types of request from tenants, do you ask for anything in return (i.e. agree to a longer lease, agree to some type of penalty if they don't care for or damage the sod, etc?)

Thanks!

Congrats on getting your first investment property under contract! You made the first big step!

Without knowing all the details, it all comes down to numbers. If all your estimated repairs (including the ones on the inspection report) is still less than a conservative ARV, I would say it's safe to move forward. I say "conservative ARV" because some markets are very difficult to determine an exact ARV. I got two back to back appraisals on my first investment property and the difference in ARV was 60%!! Typically, it's easier to figure out a more accurate ARV in established neighborhoods, and more difficult in less established neighborhoods.

Some investors stick to a 70-75% ARV rule where your purchase price + all rehab costs should be 70-75% of the ARV. These deals are harder to find, so depending on the market, I do around 85% of a conversation ARV. But it all depends on your goals. Even if your purchase price + all rehab costs = ARV, that doesn't mean it's a bad deal, if you can cash flow and there's decent appreciation in that neighborhood. Also - for your first investment property, a single base hit is A-OK bc you will learn a TON!

Good luck!