Originally posted by Account Closed:@Tate SiemerCongrats on the purchase, nice to have a little equity position once you're done.

I will also take into account if I can not lease them because of economic slow down.

We have good credit (by any standard) and a decent bank account (by college standards) but not enough to put down the standard 15-25% most HML and private lenders prefer.

A good real estate attorney or accountant?

Fourth you can only take a pro-rated % of gain out tax free prorated between the years you used it as investment (non-qualified use) and the years you lived in it (qualified use).There's a lot of moving parts and you need a QI and accountant who can guide you through it. 

Screening is very fast and complete - I can elect to accept CC and set the convenience fee (I do charge a tad above costs), and I find its pretty easy to reconcile a tenants payment via "serial number" or transaction ID reported to the bank with both Rentec accounting AND quickbooks - albeit Quickbooks is still manual for me (you can export from Rentec to Quickbooks via CSV... havent got that far along yet.We literally just completed several rehabs (meaning LOTS of expense), so seeing rents come in quickly and accurately is a relief for a change!

I have set up a Single member LLC for him, and am wondering if I should put him on payroll with his other employee(s), what would be the best thing to do as far as taxes and accounting go?

This obviously has to be taken into account when doing this strategy right? 

Originally posted by Account Closed:Originally posted by @Charles LeMaire:As you live in TX and as you are looking for MF contacts, I suggest visiting both Brad Sumrok (BS) and Lifestyles Unlimited Inc (LSI). 

To name a few:Base your underwriting on how you will operate the asset, not based on how it is currently operated or based on the broker's pro formaCreate a budget for each year you plan on owning the property + sales assumptionsHave an upfront operating account fund in addition to ongoing reservesBased the market rents on your own rent comp analysis, not the broker's rent comps15% contingency on top of interior and exterior rehab budgetConservative annual income growth assumption (no higher than 3%)