All Forum Posts by: Taylor Brugna

@Jessica Melendez House hacking is a great way to invest in a HCOL area like NYC. I wouldn't recommend putting a primary residence in an LLC. There really isn't a benefit to doing so, just downside.

Make sure you have a good umbrella insurance policy. Hope this helps.

I posted before I saw your post that you live in TN-but my answer still holds true for states that have an income tax. 

CO return will only show income sourced from CO (rental property). Since TN doesn't an income tax, you'll just pay in CO.  

@Eric C. 

Generally, your resident state return will have a credit for taxes paid to other states. This avoids double taxation. 

@Nick Glatzer FL is a no income tax state but yes, paying tax on any of the rental income in NY. 

@James L. No, there are multiple properties in my LLCs. It's up to you and your attorney to figure out how much exposure/equity you are comfortable with in one LLC. Keep in mind a bunch of LLCs has a bunch of administrative costs associated (filing fees, tax prep fees, etc.) so there is always a cost benefit.

I am a CPA :) I'm comfortable enough to not use an attorney to form an LLC for what I need it for, but it never hurts to make sure you are doing it properly. I use vcorp services.

@James L. A foreign LLC that doesn't any activity derived from NY sources won't be subject to any type of filing fee. I have a few Florida LLCs myself, and the income, etc. is derived from FL properties, no filing fee required.

You are correct in that you should set up the LLC in the state that you invest in, that's generally the recommended approach.

Matthew Wagner For an out of state investor, I can't stress the value of a good property manager enough-especially if you plan on growing. If you find one that you don't like, keep looking and find another. You want systems in place that work for properties down the road, not just this one. 8% and placement fees might sound like a lot, but in reality it's a mutually beneficial relationship if you have a good one. Instead of dealing managing you can work on finding the next deal-which will net you a higher return on your time. Good luck!

Jason DiClemente It's important to keep personal expenses out of the LLC, but to fund it you can just write the LLC a check, no big deal. There are no tax implications of doing so. An LLC is a pass through entity, meaning that all of the income/expenses and resulting tax will flow to your personal return.

@Nicholas Weckstein It really is incredible how places like Williamsburg, Greenpoint, and LIC have made many people multi-millionaires just on appreciation alone. I primarily stick with out of state investing as well-just because you don't invest in NYC or SF doesn't mean you won't see solid appreciation over a long period of time.

PS-My grandmother had 6 or 7 buildings in Williamsburg many decades ago. She sold all of them for next to nothing (literally) when the area was very rough. She probably would have 20 million right now if she held them. Oh well, I don't mind working anyway :)

Reach out to Linda Weygant