Welcome to the world of LLC’s! A Limited Liability Corporation really does nothing more than put an extra layer between you and your tenants, it gives you an air of professionalism even if there isn’t any (joking), and lastly a layer of privacy on items when looked up. That’s really it. There is a lot of upside to it, and very little down side. There are no taxes to file when you use a single member LLC, everything flows to your personals, so nothing extra with the IRS that you wouldn’t normally do now. So stop worrying about that. Repeat: There are no special filings or paperwork with the IRS…
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I’ve taken the next couple steps to digital privacy, with the first being getting my PO Box and having my LLC directed there along with applying for a Business Credit Card. I unfroze my credit for a day so I could apply, signed up for Chase Ink Business. This card in particular because they do not report to your personal credit. So now I can make the lions share of my personal purchases go away, all-the-while building up my business credit so I can eventually make home purchases through the company and not personally. Read up on: How to Form an LLC The application process was quick and easy and…
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One of my units became vacant recently and it was time to find another tenant. I contemplated going out on my own to find one, but opted to use a real estate broker instead. When we purchased the place the left side was being rented for $950 a month, and that person moved out the same month we purchased it. We decided to fix up the kitchen and the bathroom and frankly fix everything. We had a friend move in that we rented it for $1000. I knew we could get 1300 but gave them the friends and family rate. At least I was hoping for $1300. I really had…
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Our renovations are finally complete and we officially have the place fully rented with income coming in. The renovations have really come along nicely, fully completed, and the unit is now rented. The other tenant was away for a few weeks so we took that opportunity to redo the bathroom there as it was needed. Now with the house fully rented the LLC’s bank account is growing rapidly and it is time to look for a second duplex or single family home to rent. Will post more about that one later, but wanted to have an update. In all we probably put roughly $30,000 into the place on both sides.…
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Demolition on the kitchen and bathroom on the non-rented side of our new investment duplex has begun. Everything is coming right down to the studs. Even the kitchen. Excited to get this side fixed up and ready for rent. The goal is to have it ready for April. New floor, walls, kitchen, bathroom. Paint and carpet throughout. Going to cost some money up front but will pay for itself in the long run with higher rent and less going wrong with it all.
