Author Topic: How to get into rentals in a different state  (Read 1504 times)

moneysaver

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How to get into rentals in a different state
« on: October 30, 2016, 03:40:19 PM »
I am very interested in purchasing  a home in Texas while I reside in Wyoming.  I have been looking at foreclosures but it seems like most of the good ones get sold at live auctions.  I am wondering what the  best option is for obtaining one of these properties.  My aunt lives in the area.  Would it be best to have her go to the auction for me or wait until I can travel there ( I am a teacher, so summer would be the best time for me to venture down there)?

Indexer

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Re: How to get into rentals in a different state
« Reply #1 on: October 30, 2016, 04:10:18 PM »
I know nothing about rentals in different states, but I did want to add one consideration in regards to owning property in multiple states.

Owning multiple properties in different states makes probate much more complicated for your beneficiaries if you pass away. If you own properties in multiple states a basic will and having beneficiaries on your accounts likely won't be good enough. You would want to consult an attorney and likely have a trust established.

Vagabond76

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Re: How to get into rentals in a different state
« Reply #2 on: October 30, 2016, 04:38:24 PM »
I know nothing about rentals in different states, but I did want to add one consideration in regards to owning property in multiple states.

Owning multiple properties in different states makes probate much more complicated for your beneficiaries if you pass away. If you own properties in multiple states a basic will and having beneficiaries on your accounts likely won't be good enough. You would want to consult an attorney and likely have a trust established.

Rentals should be owned by corporations, not individuals.  The corporation's stock should be owned by a trust, with the individual as the trustee.

You get maximum asset protection, reduce income taxes, and can pass property outside of probate.

Now if only I would practice what I preach here.

RJCPA614

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Re: How to get into rentals in a different state
« Reply #3 on: October 31, 2016, 02:55:56 PM »
I'm sure the attorneys can weigh in with some additional considerations, but for tax efficiency I prefer ownership in an LLC as opposed to a corporation as a general rule.

matchewed

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Re: How to get into rentals in a different state
« Reply #4 on: October 31, 2016, 06:03:18 PM »
Maybe post in the Real Estate section of the forum?

MOD NOTE: Moved thread.
« Last Edit: November 01, 2016, 04:45:40 AM by arebelspy »

fishnfool

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Re: How to get into rentals in a different state
« Reply #5 on: November 01, 2016, 11:12:49 AM »
If you want a turn key rental you probably won't find one at auction, mostly fixers. But either way you'll want to inspect what you buy. I wouldn't put that responsibility on someone else.
There is a lot of other things to consider and most has been discussed here previously if you search.

arebelspy

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Re: How to get into rentals in a different state
« Reply #6 on: November 05, 2016, 11:58:30 PM »
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.