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25 September 2024 | 5 replies
Not just in the setup, initially, but separate bank accounts and properly signing all documents as a member of the LLC, even if you post on your personal social media accounts about a property owned by the LLC, if someone sues you, they will try to use all of that to get to you personally.
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26 September 2024 | 2 replies
This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.
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25 September 2024 | 0 replies
Initially, some properties hit the market with inflated prices, driven by optimistic expectations or speculative market conditions.
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25 September 2024 | 4 replies
@Andrew Jessup It's extremely common for the family trust to initially own the real property and then to transfer ownership into an LLC for additional liability protection, with the LLC owned by the family trust.
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25 September 2024 | 11 replies
However, an initial glance suggests that a Pennsylvania CPA may have processes in place to address quirky Pennsylvania calculations and the federal tax prep experience to more easily research unfamiliar Georgia issues.
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20 September 2024 | 9 replies
How did you look for funds for your first project?
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25 September 2024 | 7 replies
Check Greatschools.org or Zillow.com for school ratings.Investment Strategy:A-Class Properties: Lower risk, lower return, suitable for long-term investors looking for stable, high-quality tenants.C-Class Properties: Higher risk, higher return, appealing to investors with limited capital who can manage more properties for less initial cost.In summary, choose your investment neighborhood based on your risk tolerance and desired return.
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23 September 2024 | 5 replies
This results in an initial negative equity position that consumes the initial cash flow.
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24 September 2024 | 4 replies
I would also ensure my family has a six month emergency fund for ourselves that is not part of the investment money, since buying your first property puts yourself in a more risky situation initially.
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27 September 2024 | 13 replies
Our initial goal was to buy a duplex and house-hack it.