All Forum Posts by: Tristan S.

@Drew Shirley Thank you for sharing all those information. Another question I had, when a mortgage is taken, will it be at my name or the LLC ?

Finally, are there any good books on the subject ? I found that :

http://www.amazon.com/Estate-Asset-Protection-Texa...

Do you know if it's any good ?

Thanks again.

@Drew Shirley, Is it absolutely required to hire an attorney to open an LLC or is it possible to DIY ?

Thanks

@Drew Shirley, the best way would be to set up a series LLC with a new bank account for each new property ? it sounds tedious but it sounds like it will be easier to keep track of what is happening with each property.

How hard is it to set up a series LLC ? how much does it cost ?

@Nicole Garner, thank you for the input. Indeed, it sounds like a lot of work just for the MLS access. We will see if I feel the need for it in the future.

@Drew Shirley, thank you for your input. After reading plenty of material, I never came across people discussing taxes and LLC regarding buying and holding properties.

So if I get this right, you would collect your rents for one year and when tax season is on, you would have to prove what maintenance, property taxes, insurance, P&I cost you in order to get it deducted ?

What would you think would be the best strategy for someone starting out. Shall I create an LLC right away or wait untill I acquire more properties ?

In the case of the LLC, I am confused regarding how the money part would be handled. Would the rent be paid directly to the LLC (on a specific bank account attached to the LLC), would it be possible for me to access the money ? Would you mind giving me some more details.

Thanks

Hello all,

I am a new investor from Houston, Tx. I plan on acquiring my first rental property within a few months if everything goes well.

I have some questions regarding the ownership of a rental property :

- whenever you collect rent, will you have to pay federal income tax on the rents ?

- Is it easier to create a corporation (LLC) if my plan is to acquire multiple properties in the future ? If yes, how does the process work ? are the house at my name or the llc name ? what is the situation regarding taxes ?

For investing purposes, would you recommend getting a real estate licence to have full access to the MLS. How much does it cost to have an active licence in the state of Texas per year ?

Thank you all for your help.

@Denita Ozenne, congrats, that is amazing ! I would be really curious to see pictures of the property !

@Ankith Chandra, I am in a similar situation. We were looking for a primary residence around the galleria area but it seems like there is not much we actually like. We might just keep renting somewhere cheeper and buy our first rental property.

@Brianna H., I heard a lot of good things about the heights but it's most likely out of our price range. Our aim is to find something that would monthly cost us less than our current rent (1490$) including P&I, taxes, insurrance, PMI, HOA.

We start to realize that we might have been too optimistic. Concerning the PMI, we could also go conventionnal and still put 3.5 down and get the PMI waived whenever we reach 20% equity (which would still take a while).

Lots of people at work live in the burbs but they all have kids. I do not think we would be ready to move so far away from our friends and the bar/restaurant scene.

We are going to keep looking, if nothing comes along. The exit strategy is to probably keep renting somewhere cheaper and get that first rental property.

@Brianna H., you make a good point with families building credit and/or saving toward a down payment. I was not looking at it that way.

I am already working with an agent and a lender. Our goal is to look for a primary residence using a FHA loan and then use a conventionnal loan to get our first investment property.

We are currently working towards finding that primary residence, hopefully not too far from work (galleria area) which seems difficult for our expectations and price range. Where else should we look at ?

Whenever we are done with this, we will be able to put our focus on finding an investment property.

@Brianna H. thanks for all that valuable information. What is the realtor charging for those services ? (putting the house on MLS, providing contract ...)

How long did it take to find a tenant ? How did you know that there will be people interested in renting in this specific area ? That is something I have a hard time understanding, sure if it's in the loop, I can understand a high demand. But what pushes people to rent in the suburbs where they could pay the same amount for a mortgage and own the place ?

Thanks again.