All Forum Posts by: Vic Vega

I have a property in Brooklyn (City side) that I was all in for 56k. After a cash out refi was done I now have 6k tied up in the property out of my pocket and it cash flows $750 a month in net profit. Those numbers are amazing, but that is a bit of an exception in Brooklyn, I got lucky. You can certainly invest in Brooklyn but heavy due diligence is required and I can't think if many row homes in that area I'd want to invest any more than 60k total at the very most. Preferably less than that. 

Not always but water bills in Baltimore City can certainly hit $100+ in just a row home.

Im curious how some of your property mgmt companies work in regards to communication and action when tenant issues arise. Particularly when tenants monthly rent is late and/or not paid at all. For example, are you immediately notified when rent it late or not until rent is not still paid after the end of the month? Basically just in general what actions and when are they taken by your prop mgmt company when rent is not being paid?

@Christopher Blanco  @Irina Belkofer Thanks for the input. My main concern now with an LLC as another poster mentioned is now having to get commercial only loans. Has then been the case with you guys on buy/hold properties? Did higher rates come with this too?

@Steve Vaughan I'm referring to residential property investing only.

 Interesting. However, not sure if I'd agree with stopping paying for properties in cash. I can see where you're coming from but cash buying is a huge advantage to investors. Regardless I refi and take on a 30 yr mortgage. Still feel that is unsafe?

You bring up something important I hadn't thought about. Even without the LLC, I don't use FHA/Fannie Mae loans. Typically a cash buyer. So as long as my purchases are cash it obviously wouldn't matter. However things change and you never know. I have zero experience with commercial loans so I assume the traditional conventional loan is out the window with LLC's, correct?

Rates are typically higher with investors regardless of an LLC or not, so are you saying loans (commercial) with an LLC would be even high rates then that? Do commercial loans usually have the same amortized period (30 year) or are they shorter? What the typical down payment percentage?

Hey everyone!

I'm sure this topic has been discussed many times but I'd like to revisit it now as I'm thinking about creating an LLC for future investment properties. I'm new to buy and hold investing this year so I'm wondering if I should start using an LLC now or wait until I get to let's say 10 properties. I'd love to hear everyones input and opinions on LLC's. There a handful of questions that I have from the start...

Tax implications/benefits?

Legal protection?

Fees and expenses associated with LLC?

Can properties in my name be retroactively into an LLC?

Any benefits to putting my Wife's name on the LLC also? Women owned benefits?

General pros and cons?

Thanks!

@Terry O'Brien Nothing is impossible but I will say when doing flips you want to be in a solid neighborhood where people are buying homes. So needing to be in a solid neighborhood, being all in on a flip no more than 75k would be VERY difficult. I'd suggest trying to come upwith additional funding somehow. Now a days you can't really do low-end rehab work on flips at least to an extent. Everyones watching HGTV and they want the granite countertops, fresh hardwood, crown molding etc.

Now if you were looking to buy and hold, being all in 75k or less is very doable as you can do so in less desirable neighborhoods. 

@Alex King You can get opinions all day on here about Baltimore but at the end of the day it really doesn't matter, to an extent at least. First and foremost it depends what you're looking for as an investor. Are you looking to deal in rough areas for the cash flow and likely deal with more headaches or do you want an easier process (possibly) in a nicer area for appreciation? However, there are VERY few if ANY areas in Baltimore City I would bank on appreciation. Honestly I would never invest anywhere in Baltimore for appreciation, cash flow only. Just my take. You need to be on the ground here driving these blocks. Look for how many board ups are on the block. Look what shape the allies are in. Shoot for blocks that are away from the nearest main road. I know people that kill it in Mill Hill and other "rough" areas. Do your own research and match that with your goals and comfort level.