New To Property Management
First, I want to say how happy I am to have found this forum. I am inthe process of becoming a landlord and I am sure the advice contained here will be invaluable.
This is my game plan, please tell me what I can do to improve it. I bought my first house one week ago in an auctin. It is a three apartment unit. Paid 53k for it and need probably 8 to 10 k to get it back to where I would feel confortable renting it.
I want to continue to buy homes, under value. Purchase them cash and then turn around and get a Equity loan 75% of the home apraised value, I would then turn around and use this money to buy the next fixer upper. I am not interest on flipping them, unless of course there is an oportunity to make a couple extra dollars quick. My plan is to purchase as many homes as I can, kep them for 15 years then retire.
I have a total of 100k startup capital and credit around 740 fico. I already incorporated an LLC but not sure if I should put the houses on the LLC name or not as it might be harder to get Equity lines of credit?
Suggestions and pointers are welcome.
Thanks
First welcome.
You have a pretty good plan. You said you were worried about getting loan in LLC name. A lot of banks will loan the money with you personally signing for it. Talk to a CPA or a Lawyer for the best advise. Also if your LLC owns the property free and clear it should be easy to get a bank to loan against that asset. You have a lot of start up capital have you ever manage a property before? If not please take some time to learn the ins and outs. Managment is one of the biggest way to make a property profitable or not. It will also help you when you look for the next deal.
Good luck
J
Thanks for the great advise!
Are you a landlord in the same city? What does the lease say? I would send a copy of the lease to the landlord and point out that there is no parking rules. In the towns I have rentals we must provide off street parking so if he has taken it from them than call the inspector. In minnesota you can seek help from the court if he is really bad. I wish you luck.
James