All Forum Posts by: Vasudev Kirs

@Joe Villeneuve I recently put an offer for a condo (< 100k) and got accepted - it was all cash offer. Reading comments and your specific feedback, it looks like i should have gone for a bigger investment property or properties with DP instead of all cash.

As long as a 20%down payment would still result in positive CF, then yes. If a 20% DP generates a negative CF, then don't buy the property.

Thank you, @Joe Villeneuve. Are there any online calculators to analyze CF to get a good picture?

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Thanks @Joe Villeneuve Lesson learned.

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Quote from @Joe Villeneuve:

Quote from @Vasudev Kirs:

Quote from @Joe Villeneuve:

Why are you paying all cash for your first property, then pulling out cash (and have to pay for it with interest) to buy your next? That makes no sense. Just split the money now when the cash is free.

Also, paying all cash is usually a loss to you since the cash you spend is your cost. As long as the property cash flows positive, the tenant is buying the rest of the property for you. $300k should be buying you $1.5M worth of property value.

The the main role of the initial cash flow you get from a property is the recovery of your cost...the cash you put in. The more cash you put in, the more cash you have to recover, and the longer it will take to do this.

Sorry for intruding but Joe I have a question. I am trying to understand your point of view on cash. Is not it prudent to pay by all cash to avoid high interest rate at this time? I have used all cash as a leverage to beat competition. Could you please explain "cash you spend is your cost"?

In what scenarios does paying by all cash make sense?

Thank you for your pointers!

Your only cost is the cash you spend on any property. Positive CF means your tenant is paying the rest, not you. This means if you payed all cash, you paid full price. If you payed just a 20% DP, then all you paid was 20% of the property value. This also means if you have negative CF, the negative comes out of you pocket in the form of your cash, which adds to the cost.

Thanks Joe. If the CF is positive and enough to sustain monthly mortgage payment for a new property, then does paying by all cash make sense?

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Quote from @Joe Villeneuve:

In what scenarios does paying by all cash make sense?

Thank you for your pointers!

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Quote from @Mekkel Blanchard:

Hey, I also use mysmartmove.com for background/credit check with tenants. It is very user friendly and allows you to charge the tenant for the background/credit check for $42 or so. It will be totally up to you if you want to send it in your personal name or LLC. Ive seen people say to let the tenants know your the "property manager" or "one of the owners" to relieve the burden of saying im the "owner". When first starting out it can definitely feel intimidating but I like to always lead with honesty. So when I first started I put everything in my personal name because it was, and currently because I still self manage I let tenants know I am the sole owner and I manage everything like a business. Hope that helps!

Thank you, Mekkel. That was helpful to know.

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Hello,

I have an LLC, created specifically to manage rental property and I am currently creating account in mySmartMove. I need to fill out two sections 1) personal information and 2) company information. When it is asking for personal information, do I need to provide my personal first name, last name etc, or can I provide LLCs information? I am assuming I need to provide LLC information under company information.

There are two members in the LLC - my spouse and I.

I am not sure if there is any legal obligation to provide my personal details. Any thoughts?

I am a newbie so please pardon my ignorance.

Thank you!

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Hello,

I am not sure if there is any legal obligation to provide my personal details. Any thoughts?

I am a newbie so please pardon my ignorance.

Thank you!

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Quote from @Bjorn Ahlblad:

We have an EIN-not TIN, for the LLC and that number came with the creation of the LLC. You should have a separate bank account and CC's for the LLC.

TIN is an IRS ID number. You should have a Board meeting with minutes authorizing the bank account opening. All the best!

Thank you! My spouse and I are members of the LLC - so do we still need EIN if we are not employing anyone? Are there any tax implications for creating EIN vs TIN?

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Hello,

We recently purchased a rental property and created a domestic limited liability LLC (two members - my spouse and I). Title company is asking the EIN/TIN of the entity. Is it better to create a new EIN or is it better to create a TIN or just use my personal SSN?

We would like to keep the operating revenue and expenses separate from our personal stuff but want to file them along with our personal tax returns. What is the best way? Also, do you suggest we create a new bank account to manage property? Could you please provide suggestions?

Thank you!

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All Forum Posts by: Vasudev Kirs

Vasudev Kirs has started 24 posts and replied 79 times.

Post: Needing input on how best to use my cash

Post: Needing input on how best to use my cash

Post: Needing input on how best to use my cash

Post: Needing input on how best to use my cash

Post: Needing input on how best to use my cash

Post: mySmartMove and LLC help

Post: mySmartMove and LLC help

Post: help with mySmartMove account

Post: EIN or TIN for LLC?

Post: EIN or TIN for LLC?