Real Estate - Landlord Questions

**stormtrooper** · 08-27-2008, 04:22 PM

I currently own one home and am planning to purchase a second. I want to make sure I have all my ducks in a row before going into this and wanted some guidance.

1. Is there anything special I should look for in financing?
2. For only owning 2 properties should I start an LLC?
3. For my lease agreements would it be better to purchase online or go to a lawyer in my town?
4. If you could name one book that assisted you in your real estate career, what would it be?

5. I appreciate your reply!

**Nco** · 08-28-2008, 08:04 AM

0. Do you rent out the house you own currently? Or, is it your primary residence and you just want to buy an investment property?

1. eh... Fixed rate to mitigate risk... sometimes lenders charge higher rates for non-owner-occupied properties.
2. IMHO, yes. You don't want to lose more than just the properties if something bad happens. If you don't have many personal assets, then I would say no. You could put both properties in the LLC if you want. Depends on how much risk you want.
3. IMHO, go to a lawyer. They are more aware of the area and can help you customize your own agreement to your own needs and then explain it all to you.
4. The dummies books are good: Real Estate Investing for dummies, maybe check out landlording for dummies? Also, "The ABC's of real estate investing"

5. Sure.

**vanclark** · 09-11-2008, 01:19 PM

Its never a bad idea to limit your risk using an llc, but you may want to check city policies on whether or not you can represent yourself in court for doing evictions.

Check with your local Rental Property owners association for viable forms.

The best advice that I could offer on books is a motivational book. Most people don't NOT succeed because of a lack on info. Instead they fail because they don't use the info that they have.

**ThePropertyFlipper** · 10-31-2008, 10:01 PM

Just a quick note, if you do put your property into an LLC, there is a very small chance the lender could use the "due on sale" clause that is in most mortgages since the ownership has changed hands from yourself to your business entity.

I have put my own properties into LLC's and never had a problem, but did have a lender warn me about that before.

**fmike630** · 11-01-2008, 08:06 AM

require more of a down payment. Be honest with the bank about your intentions. Many say it is a second home and could cause problems later.

If you use a Realtor they can help with the Lease Agreements and follow guidelines with deposits.

**tycoon** · 11-01-2008, 03:39 PM

Originally Posted by fmike630

require more of a down payment. Be honest with the bank about your intentions. Many say it is a second home and could cause problems later.

If you use a Realtor they can help with the Lease Agreements and follow guidelines with deposits.

Just don't take advantage of your tenants and vice versa. That seems like an easy trap to fall into.