All Forum Posts by: Joel Burt

Thanks 

Daniel Mohnkern

I'll definitely check out the podcasts! 

I'm getting ready to go to closing for my first rental property and I am terribly confused. 

Facts:

-I am purchasing a single family rental property with a conventional mortgage from my bank.

-I have created a Pennsylvania LLC in my wife's name with her as the only member.

-The loan and property will be 100% in my wife's name. (The reasoning for this is that she is a PA resident and I am not)

-My name is no where on the title, LLC documents, or mortgage.

-The bank will not allow us to put the property under the LLC because that would require a commercial loan.

-My wife and I were each involved in an auto accident in the last 3 years so we are unable to qualify for an umbrella insurance police.

Question:

How can I best protect myself from lawsuits? Is it true that an LLC provides no asset protection if you self-manage the property? If the LLC is in my wife's name and I manage the property does that count as self-managed?

Thank you!!

  I am just starting out in real estate and about to buy my first rental property.

Should I open an LLC for my first property? I'm in Pennsylvania and the fee is only $250. I understand that there are liability and tax benefits offered by an LLC, is the trouble of opening and managing an LLC worth it for someone just starting out?

  I am getting ready to make an offer on a multi-unit property but I'm torn between which is more important: flow or size.

Flow

  I'm considering a 2-unit property in downtown West Chester, PA. The property was converted from a large corner townhouse into two separate units. As a result, the bathroom in the first unit is located at the back of the unit. Specifically, you must walk through the living room, kitchen, bedroom, and office to get to the bathroom. Obviously, this is not an ideal layout for the apartment. The flow of the second unit is better, but also not ideal.

Size

  Despite the above issues, the property is approximately 1.5-1.75% larger that other townhouse selling in West Chester at the same price point. 

  Which is more important? The flow of the property, or the size of a property in a town primarily composed of small 100+ year old homes? 

Thank you!