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re: TOS: Being a landlord
Posted on 6/12/15 at 8:53 pm to deeprig9
Posted on 6/12/15 at 8:53 pm to deeprig9
quote:
The finance rep will tell you no problem, we refi before the balloon and you'll have more equity and we'll slide you into something sweet... it is a lie.
Skimmed through but listen to this. Not saying it's gonna happen but I know a lot of people who got fricked by this when shite hit the fan in 08.
I wouldn't do a balloon on a long term investment right now anyway. Rate are stupid low. Lock in at a 15 even if you're paying 4-6% for it being rental you'll be fine in long run. Remember.... long run.....
0
Posted on 6/12/15 at 9:02 pm to HinesvilleThrill
quote:
Get a property management company. You'll be much happier in the long run.
This. My parents have several houses that the rent out and one year my dad decided to keep the extra money instead of paying company. He went back as soon as he could
They'll take a lot of the issues off of your hands.
Posted on 6/12/15 at 9:20 pm to Porter Osborne Jr
Property management is like insurance. It's an unnecessary expense until it is necessary.
The only way I would steer a person away from propman is if he is already in the business, knows construction and maintenance on a professional level.
DIY Property Management Test:
1: Name 10 electrical contractors off the top of your head.
2: If a tenant says his AC isn't getting cold, do you know who you are going to call, and does he owe you a favor?
3: Have you shared a meal with a superior court judge or local sheriff in the last 12 months, and did he pay or did you pay?
4: Do you have $25,000 that could disappear for two years?
5: Are you a thoughful compassionate man that tries to live his life in the footsteps of Jesus Christ, or are you a cold hearted son of bitch that doesn't give a god damn?
The only way I would steer a person away from propman is if he is already in the business, knows construction and maintenance on a professional level.
DIY Property Management Test:
1: Name 10 electrical contractors off the top of your head.
2: If a tenant says his AC isn't getting cold, do you know who you are going to call, and does he owe you a favor?
3: Have you shared a meal with a superior court judge or local sheriff in the last 12 months, and did he pay or did you pay?
4: Do you have $25,000 that could disappear for two years?
5: Are you a thoughful compassionate man that tries to live his life in the footsteps of Jesus Christ, or are you a cold hearted son of bitch that doesn't give a god damn?
Posted on 6/12/15 at 10:04 pm to deeprig9
Dp
This post was edited on 6/12/15 at 10:06 pm
Posted on 6/12/15 at 10:26 pm to Spunky
How do you DP yourself two hours later?
Posted on 6/12/15 at 10:29 pm to deeprig9
Alcohol
Posted on 6/13/15 at 10:06 am to Spunky
Some good shite here fellas. Preciate it 
Posted on 6/13/15 at 11:25 am to S1C EM
Have to disagree on the tax aspect of the LLC. In Georgia, a single member LLC can be a "Disregared Entity". What this means is that although the LLC is a separate entity for legal purposes, for tax purposes the LLC would be treated as a personal business and reported on Schedule E of Form 1040 just like personally owned rental property. All of the property expenses and mortgage interest would be deductible against the rental income.
Posted on 6/13/15 at 11:27 am to Dawgman77
What's the difference between that and an S-Corp?
Posted on 6/13/15 at 11:39 am to deeprig9
LLC that is a single member can elect to be a
1) Disregarded Entity
2) A Corporation
3) An S Corporation
If electing a Corp or S-Corp then a separate return has to be filed. If Disregarded Entity, LLC is only for legal protection under the law and segregation of assets. If an S-Corp, you are correct in that some sort of "Salary" would have to be paid to the manager of the S-Corp and thus Payroll taxes would come into play. That's why we suggest NOT electing Corp Status.
Multi Member LLC's are by statute Partnerships unless they also elect to be tax as a corporation or s-corp. Multi Member LLC's cannot be Disregarded Entities.
1) Disregarded Entity
2) A Corporation
3) An S Corporation
If electing a Corp or S-Corp then a separate return has to be filed. If Disregarded Entity, LLC is only for legal protection under the law and segregation of assets. If an S-Corp, you are correct in that some sort of "Salary" would have to be paid to the manager of the S-Corp and thus Payroll taxes would come into play. That's why we suggest NOT electing Corp Status.
Multi Member LLC's are by statute Partnerships unless they also elect to be tax as a corporation or s-corp. Multi Member LLC's cannot be Disregarded Entities.
Posted on 6/13/15 at 11:28 pm to Dawgman77
Dawg man...good point. We're not involved with a lot so our LLC is a pass through as far as taxes. Profits or losses get passed through to our personal taxes so our marginal rates apply. I can't remember the reasoning but establishing a corp didn't make any sense based on what we are doing.
Posted on 6/15/15 at 2:26 pm to SquatchDawg
Ive walked the property and been inside all of the units. Financing is possible, but its certainly more work than a traditional mortgage.
Discussions will get heavy in the next day or two. If we plan to move ill go back to the property with some smsrt folks by my side.
Discussions will get heavy in the next day or two. If we plan to move ill go back to the property with some smsrt folks by my side.
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