All Forum Posts by: Tom O.

Owner should pay the water bill. 

https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2023_code...

HUD publishes Fair Market Rents for every zip code in the country. It depends on the area and can vary widely.

If you don't have a contractor you can ask this or pay to get you an estimate or figure it out yourself maybe you're in the wrong business? 

Much of the advantage and value of RE investing is the leverage you get when you invest with a loan. So I don't see the value in this but I don't have the cash to buy anything right now anyway. But for me, leverage is king. I have four buildings with 25 units. If I had owned everything without loans I would own exactly 2 buildings right now of 9 units. 

I'm wondering about their notes as well. Seems too good to be true. 

@Konstantin Ginzburg

So the LLC protection from liability varies from jurisdiction to jurisdiction. I have personally seen judges go right through corporations right through LLCs is if they didn't exist. Even when there was also the protection of the workers compensation act. Meaning an employee suing his employers LLC.

But anyway I keep telling everyone to buy more insurance. An umbrella of for a million dollars cost $300. That's pretty good protection.

I can also personally attest that personal injury lawyers don't want to own buildings. They don't want to pierce corporate veils and go through and find landlords personal assets. They don't want to do all that crap.

They much prefer insurance adjusters writing checks.

One last point that nobody's mentions. And most jurisdictions and certainly mine. If you self-manage you will not get the protection from an LLC. You are the manager. You will always be personally liable for your own activities.

23 LLCs will not protect you from your own actions with respect to the building. If you want the LLC protection, you're going to have to hire outside management. And don't ever visit the property because that's an inspection where you should have figured out what was wrong and fixed it before the tenant or whoever got injured. You see?

But I am in a very plaintiff friendly state. YRMV.

1. Don't buy single family homes. Let people who want to live in them buy those. 

2. Buy multi-unit. They cash flow better. Mo doors; Mo Money. 

NY is rough man. You need an attorney. If you're going to do it yourself, google elsewhere. There's tons of guides on how to do it. 

One tip: most holdover clauses raise the rent significantly if they stay and you invoke the "holdover clause" by ending their tenancy if that's how your lease is set up to do so. 

I have a realtor but he's in the north. Jarrod Carr. He's terrific and very familiar with multi-unit. That does sound like a deal. 

https://www.atproperties.com/a...

I like investing in Indiana a lot but I don't know much about Indianapolis. For that many units at that price it might be a rough neighorhood. Which will make it harder to manage from afar. 

 1. The cost segregation lady I spoke to did not say that at all re short term rentals. Can you explain why you believe only short termers can benefit?  

2. You can't take losses from your passive income (rental) against your work income (active). I will be able to take it to offset capital gains but much of these "losses" will go away with depreciation recapture.