I don't know about your market in your area, so it is hard to determine much based on that. In a college town $1000 a month could be bare bones. Rural Iowa and you would be looking at a very fancy place for that rate.
Mortgage Question
- Thread starter SCNCY
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I don't know about your market in your area, so it is hard to determine much based on that. In a college town $1000 a month could be bare bones. Rural Iowa and you would be looking at a very fancy place for that rate.
You're right. I definitely should've tied the first part of my post more directly to his original question, THEN mentioned the interest thing as more of a throw in consideration. Sorry about that.
I think you are asking a legal question and really need to talk with a lawyer. Preferably one that deals in real estate.
I think you potentially open yourself up to the LLC being broken if challenged by not having the debt in the name of the LLC. But I don't know that for sure. I say spend the few dollars to talk to the attorney get the right answer, write of the legal fees off in the LLC and move on with your life.
As an accountant, if there is any chance you are going to sell the property in the next 3 years, I wouldn't put it in an LLC though. As you will lose the exemption on the gain if you do ($250k single $500k married). Curt can probably confirm/ or correct me if I am wrong.
I think you potentially open yourself up to the LLC being broken if challenged by not having the debt in the name of the LLC. But I don't know that for sure. I say spend the few dollars to talk to the attorney get the right answer, write of the legal fees off in the LLC and move on with your life.
As an accountant, if there is any chance you are going to sell the property in the next 3 years, I wouldn't put it in an LLC though. As you will lose the exemption on the gain if you do ($250k single $500k married). Curt can probably confirm/ or correct me if I am wrong.
I think LLC's only provide legal protection if there is revenue and expenses running through them. If you treat an LLC like the same way you would a sole proprietorship ie. spending and using it's accounts like you would a personal account you void it's protections.
Yes any legal business form should be used as if it was for a legitimate business, mixing personal can cause the corporate veil to be pierced.
@boone7247 What is the exemption you are talking about? I have only bought one house (the one I want to turn in to a rental), so I have never sold one before. I plan on keeping this as a rental for a while. Want to try and make a small rental business.
This is true here you need to make sure you don't commingle income and or expenses between an LLP or an LLC as this will cause you to pierce the corporate veil, and potentially lose any protections you have gained.
You should follow the other advise and talk to an attorney on this issue to make sure you are protected to the level you want.
The link below is a good source, but I would also identify other sources when doing your analysis.
https://www.rentometer.com/
Home owners exemption. If you live in your house for 2 of the last 5 years, you can exclude gain from taxation up to $250k for single or $500k married filed joint. But it has to be a personal residence. So moving it to an LLC you would lose the exemption. If you know you aren't going to need/want to sell it in that 3 year time period after you move out, then you are fine.
Well I can say I don't use these sites, as I have not gone through a broker to purchase a property before.
https://www.listselfstorage.com/
http://www.marcusmillichap.com/
http://www.argus-selfstorage.com/
I developed 2 of my properties the other one I purchased from the bank after they defaulted.
You can also check with a local realtor to check for when properties hit the market