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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: moneysaver on October 30, 2016, 03:40:19 PM

Title: How to get into rentals in a different state
Post by: moneysaver 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)?
Title: Re: How to get into rentals in a different state
Post by: Indexer 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.
Title: Re: How to get into rentals in a different state
Post by: Vagabond76 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.
Title: Re: How to get into rentals in a different state
Post by: RJCPA614 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.
Title: Re: How to get into rentals in a different state
Post by: matchewed on October 31, 2016, 06:03:18 PM
Maybe post in the Real Estate section of the forum?

MOD NOTE: Moved thread.
Title: Re: How to get into rentals in a different state
Post by: fishnfool 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.
Title: Re: How to get into rentals in a different state
Post by: arebelspy on November 05, 2016, 11:58:30 PM
Quote
How to get into rentals in a different state

http://forum.mrmoneymustache.com/real-estate-and-landlording/purchasing-real-estate-you've-never-seen/ (http://forum.mrmoneymustache.com/real-estate-and-landlording/purchasing-real-estate-you've-never-seen/)