All Forum Posts by: Yia Her

@Nicholas W.  Sorry, I forgot to include in my expense what I have calculated and allotted for 7% vacancy factor, repairs 3%. 

Currently negotiating a deal to keep as rental.  Just want to see if my numbers I have inputted in the rental calculator is good and from your experience, would this be a good buy why or why not.   

Property Info:

Purchase Price: $180,000.00 

Purchase Closing Costs: $5485

Estimated Repair Costs: $6,700

Total Cost of Project: $192,185

After Repair Value or Market value: $240,000.00

Down Payment: $36,000 Loan Amount: $144,000.00

Loan Fees: Amortized Over: 30 years 

Loan Interest Rate: 5.000% 

Monthly P&I: $721.49

Monthly Rental Income: $1,450 

Monthly Expenses: $1,157.84 (this includes taxes, insurance, landlord covers utilities, garbage)

Monthly Cash Flow: $292.16

Pro Forma Cap Rate:5.22%

NOI: $12,520.00

Total Cash Needed: $49,625

Cash on Cash ROI: 7.06%

Purchase Cap Rate: 6.96%

Thanks 

Yia 

Most current flip just hit the market.  3 days on market on new years eve and went pending today with more people calling to see if still available.  Highest priced in the neighborhood and got over asking.  Excited to start the new year out with BANG!  

Sounds like a 5050 partnership and marriage since going into the deal as buy and hold.  Both needs each other to make the deal work.  

@Wayne Brooks @Jessica Zolotorofe thanks. Yes its my flip that I have purchase in my name and looking to sell. I see that it will make no difference actually from what my CPA mentioned. There are few benefits to have it in LLC but it should be from the start of the purchase.

Welcome Robert Richards there is an investor meet up on the 10th in Roseville with host David Oldenburg hope you can make it. Glad to hear your turning up the gears for 2017 in real estate. I'm a flipper here in sac and Elk Grove so make sure to connect if you ever want some advice. Good luck

I have set up an appt to speak with a local real estate attorney tomorrow. Hopefully it goes well. I guess I should clarify my initial statement but I do understand where Jessica Zolotorofe is coming from. I have been an agent in real estate for many years and seems like there is no problem when parents want to add their kids into title for protection in case of death. In this case I'm more concern about not being able to sell my flip property by adding my LLC to title since we have escrow starting in a few days and closing in 30 days. My game plan on adding title is to give all profits to the LLC but I'm not sure if that will eliminate the state taxes upfront. I'm not really concern about the note being call on since the sale will payoff any mtg loans I have. Thank you both for chiming in.

Wes Blackwell and Roselyn Richards I have contacted Eason & Tambornini and spoke briefly to Matt. He's the real estate attorney but he referred me out to Brad McDowell.

Thanks for giving your thoughts on this. I'll definitely check to make sure I can do this before moving forward.

Hi BP community 

I would like to know if anyone has bought properties under individual names and then adding LLC or entity name afterwards and sell it under LLC. I have been buying homes under individual names solely because of conventional financing through traditional banks since they don't lend to entities. I have been saving money this way but have experience more tax upfront when going to re-sell of property afterwards. From you experience, is this something that can be done and should there be any concerns about chain of titles or other unforeseen hurdles that can come with doing this. I'm actually going to accept an offer on one of my flips that has been structure this way and want to make sure I don't make a big mistake by adding my LLC in the process of selling.

Thanks