Author Topic: First time land lord  (Read 596 times)

NattyAnn

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First time land lord
« on: July 03, 2018, 12:06:57 PM »
I'm so exited to finally reach a personal milestone: I'm a landlord!

Getting that first rent check has been a great feeling.

Curious, does it make sense to set up an LLC for the rental expenditures and income? I currently have two rental units, and will have 3 by the end of 2019.

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Blindsquirrel

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Re: First time land lord
« Reply #1 on: July 14, 2018, 07:13:50 AM »
   That is kind of up to you. Some mortgage companies may consider transfer of property to the LLC a sale and want their money. Also, LLC requires a fair bit of accounting and tax filings.
Losing interest in the whole work thing

YttriumNitrate

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Re: First time land lord
« Reply #2 on: July 14, 2018, 08:13:39 AM »
For a small landlord, the money/effort spent on an LLC would often be better spent on extra insurance. For example, forming an LLC in California costs $800 PER YEAR. That would buy a whole lot of insurance.

In an older post, you mentioned Denver, so the good news is the Colorado's LLC are downright reasonable at $50 to form and $10 per year afterwards. You'll probably get more than $10 worth of protection out of an LLC, so I'd say go for it in this case (but don't think you can skimp on insurance because the properties are in an LLC).

NattyAnn

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Re: First time land lord
« Reply #3 on: July 18, 2018, 08:40:11 PM »
These are both really helpful responses. Thank you so much!

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Greens

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Re: First time land lord - Roofstock
« Reply #4 on: July 19, 2018, 07:48:43 AM »
Hello!

Anyone here familiar with/used Roofstock?

My impression is that it is the "AOL of First Time Landlording" -- perfect for a beginner like me venturing beyond REITs.

I assume there are better deals to be had, and certainly less expensive to self-manage, but as a beginner this appeals. My hesitation is ownership across state lines (even with the assistance of a management company).

Honestly: once bitten, twice shy. I bought real estate in another market ten years ago as a complete novice because my home market is very expensive. It tanked, caused much grief, and is still underwater. Yet, I'm ready to try again.

Mother Fussbudget

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Re: First time land lord
« Reply #5 on: July 19, 2018, 03:22:34 PM »
I haven't used Roofstock, but I read a very interesting review / case-study thread on BiggerPockets

I hope this helps, MFB