All Forum Posts by: Amy E.

Hard to say who to believe, did the PM lie and not meet the tenant?  Did the tenant lie and flake on the meeting?  Or was it just a miscommunication (which I would blame on the PM, because that's their main job).

If you want to stick with the PM, then you need to sit down and have a discussion about communication.  Be specific and say things like, "If I email or phone or text, I epxect a response within 1 business day", etc.  And, by the way, I do not think that is unreasonable.  I try to respond to my tenants the same business day, even if its just to let them know I can't resolve the issue that day but am working on it.  My gut feeling is that if YOUR emails and calls have been un-retunred or they have been slow to respond, the tenant is likely telling the truth.  Additionally, it is concerning the tenant knew how to contact you.  The point of having a PM is that you don't get called....

Personally, if this is your first and only rental, I would manage it myself and fire the PM. Worse case, you have the tenants from hell and you learn a lot. Best case, the PM did their job and got you a great tenant through their screening who is someone you can easily manage yourself.

The best place for you to start is the US Department of Housing and Urban Development (HUD). The site has lots of information for both landlords and renters. I do seem to recall there being some incentives to rent to the military/veterans, but not sure about building or construction. You also may want to check out the local community development website and see what's available. https://www.hudexchange.info/community-development...

I'd say those are really good goals.  But you may want a more detailed plan, especially for the short term (not sure I'd detail more than about 5 years out).  Goals are great, but it always help me a bit more to have specific steps to accomplish.  For instance, your goal may be to save a million, but the first step in your plan may be to set up automatic draft from your paycheck to 401k.  

You say your not sure what the first step is, maybe its reading a bunch on BP or calling your bank to see about financing, etc.  It doesn't have to be a huge step, but write down specific steps to get you started.

Good luck!

Essentially, all a mortgage is is a loan secured with collateral (just like an auto or boat loan) with some special rules attached because its property.  The bank or portfolio lender, or hard money lender, or your Uncle Joe can secure your loan with whatever type of collateral you've got (although when you're talking property there are typically state and federal laws that apply).

I bought 3 properties with cash and want my money back so I can buy some more.  My local bank is willing to do one mortgage with all three as collateral.

The problem with your scenario is that you don't own the properties yet.  The bank (or whoever) will likely not lend you $150k if you only secure it with one $50k property....even though you intend to buy some more.  You may ask your local bank about your situation and see if they can recommend any products to help you.

Not sure what you're asking with respect to the 203k.  You have to be an owner occupant to get a 203k, but there would be nothing that would prohibit you from getting conventional mortgages after that (I think the limit is about 10 for most banks depending on how they operate).

@Tyler Brown

I have similar type deals in my area, they aren't too good to be true at all.  But, as others have said, you are likely looking at a low income area or Class C neighborhood and the key to this type of property is good management.  To lower the risk that sometimes comes with low income tenants, I chose to go with Section 8 tenants for the most part and it's worked out great.  You may want to look at that in your area too.  Most local housing authorities post their Housing Quality Standards online, so if you think something is too good to be true, you could go tour the home with this checklist in mind.

My "too good to be true" scenario would be these types of returns in a Class A neighborhood.....anyone heard of that?

 No problem!  Drop us a line when you get your first deal.  I see so many posts like this, but rarely see the follow-up posts on what happened.

You need to think of what assets you have and how you can leverage those assets for money to purchase a house.  Here are some off the top of my head (most I've learned from BP).

1. Cash - well, I figure if you had it, you wouldn't have written the post, but its always worth mentioning.

2. Cash in places that are tricky to tap - 401ks, IRAs, investment accounts, trusts, etc.  There is usually SOME way to tap the cash, but you may not qualify and/or like the fees associated with it.

3. Personal Property Assets you can tap - your primary residence, cars, boats, motor homes, etc.  If you own them free and clear you can get a loan on them to tap the cash.  Heck, for that matter, clean out your attic and see what you find to sell.  Or ask your relatives if you can clean out THEIR attics for free if you can keep their stuff and sell it.

4. Your own good credit - you can get a signature loan up to $35k at most banks, up to $100k at SoFi and a couple of other places.  Pay back is usually 7 years or less, so the payment may be high, but its a start.

5. Banks - they have lots of money, but will typically want you to put 20% down for a non-primary residence.  That said, have you considered house hacking?  There are a lot more avenues for loans if you live in the place you buy (duplex, triplex, etc.).

6. Your charm and winning smile - Who do you know that has one through four?  Ask them to partner up.

7. Your own initiative - If you're determined to 'save' your way to your first deal, what are you doing to earn extra income and/or reduce expenses?  Those topics have entire websites dedicated to them (try MrMoneyMustache.com and MadFientist.com), so I won't elaborate.  But its worth a mention.  Also, if you are in an expensive market, try investing elsewhere.  For instance, there's no way I could invest in Beverly Hills or New York, but I do okay in my own rural town. But there are plenty of other places you can get a good rental investment home for $50-$75k.

Good Luck! 

Am having trouble finding a real estate business attorney in Middle GA.  One who can explain liability exposure to me, not just handle closings.  So if you have a referral, please send it my way.

That said, I want to be prepared with questions once I do find a lawyer in my area. I've got some questions for those that are currently operating multiple LLCs by having one parent LLC that owns multiple child LLCs. The child LLCs own/operate each individual rental property. I only own rentals, so no need to cover flipping at this point. Here are my questions:

1. It's my understanding that the purpose of an LLC is to limit my personal liability. But I manage my properties myself so aren't I still personally liable even if the properties are owned in an LLC? And if I'm still personally liable....what's the point of the LLC? If I am personally liable since I am actively managing the rentals and since it's much easier to get funding without an LLC, am I better off holding properties in my personal name and trying to find the appropriate personal insurance to cover me if?

2. Additionally, since I currently have only one LLC, I collect the rental income and directly pass it to my personal taxes through a K-1. If I continue to manage the properties but the child LLCs own them, and I am not a direct owner of the child LLC (the parent LLC is), then wouldn't I have to pay myself a salary for the property management (paying bills, collecting rent and hiring contractors)?

3. I have a multi-member LLC, and we file a 1065. If I go with multiple LLCs, each would have to file a 1065. Is there anyway to make this less painful by collecting rent in the parent LLC, effectively making the income/expenses $0 for each child LLC? Or would that open the parent LLC up to liability and make the child LLCs useless? I think this may be illegal because each LLC is supposed to have a business purpose and if I did this the only purpose of the child LLC would be to protect me from liability, which I don't think counts as a business purpose, does it?

Don't you have to powerwash before you paint, anyway?

I thought about doing this, but ran into some boarding house restrictions in my area.  You may want to search your local city/county code to be sure you can do this and/or what will turn you into a boarding house.  I also found a lot of good info searching the forums here.