Anyone with knowledge in property investments and management?

SYBIZ

SYBIZ

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I know there are a bunch of you out there that own rental properties so I'd like to pick your brains. The back story is that my wife inherited 33% ownership of a 2 bed/2 bath condo in San Diego. Her Mom and Brother own the other 2/3 and the plan is to keep it as a rental property. Would it be best to form an LLC or is there a better way to go about it? I'm also planning on being the property manager so any advice on deposits? I've never rented a house before so I have no idea what is typical as far as deposits. I'm learning as I go here but I'm excited and eager to learn the in and outs of this. TIA for the information. 

 
First order of business should be to get up to speed with Newsomfornia  tenant / landlord laws. Then have a bullet proof (as possible for your state) lease. The money I spent with attorneys during my ownership of rentals was well spent money. 
People claiming to be attorneys on internet forums are not a good source of info.  Tenant rights activists are not a good source of legal info, however they do offer a good view of how some tenants think.

 
EastMT said:
First order of business should be to get up to speed with Newsomfornia  tenant / landlord laws. Then have a bullet proof (as possible for your state) lease. The money I spent with attorneys during my ownership of rentals was well spent money. 
People claiming to be attorneys on internet forums are not a good source of info.  Tenant rights activists are not a good source of legal info, however they do offer a good view of how some tenants think.
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Your "first order of business" is the reason why I just want to sell the place but ultimately, it's not my decision. Laws in Ca seem to lean towards the tenant and the headache doesn't seem to be worth it. 

 
In CA, we've been doing Section 8.  Given the ability to get screwed over by tenants here, at least the payments are on time...

 
My advice is pretty simple:

- Never tell the renters you are the owner, just a paid property manager.  

- Make paying you easy, every year give them 12 self-addressed envelopes with stamps and have it sent to a PO Box.

- As for a LLC, I was told not to, due to Tax reasons, no idea though...........

As for having three partners, I personally wouldn't do it, I can't see splitting proceeds/costs three ways profitable in anyway.  I have been partners in a couple of houses, never lasted long enough to be super profitable.  

 
My parents owned a 20-unit apartment in San Gabriel. Bought it in 1972.

My mom/dad and my mom's sister/hubby went in on it. My Dad and Dave did all the work but had an onsite manager to handle day to day and collect rent.

2005 they decided to sell and did well...but in hindsight they wish they had just hired a property manager and let them deal with everything and just collect a check every month!

That place is worth a lot more now and it would have alleviated the headache of being an owner/operator.

Look into just having a management company handle everything. Like stated before, you don't want anyone knowing you are an owner or affiliated with the owner(s).

There are some great tenants that really just want a nice place to live and can't afford to shell out to buy! THEN there are those that don't give a crap about the property...oh the owners have BANK cause they own this, "and I do what I want" (Cartman voice from Southpark)

:bag:

 
My opinion,

Set it up with a property manager. Stay out of it personally.  All 3 parties share the same role. All 3 parties share the same expenses and income.  No one does more or less for the same share.  Partners suck and I personally wont have one, let alone 3 or more, but if I did, it would be equal share on everything. 

 
Interesting, good info here as Ive been pondering buying a rental property or two. We retired out of Ca, the issue I'm having is with the current interest rates if I buy a property in this area I basically make in rent what the money makes in a CD with no headaches. Now, when rates drop and / or if cost of buying housing drops I'll reconsider my position. 

 
raspadoo said:
Interesting, good info here as Ive been pondering buying a rental property or two. We retired out of Ca, the issue I'm having is with the current interest rates if I buy a property in this area I basically make in rent what the money makes in a CD with no headaches. Now, when rates drop and / or if cost of buying housing drops I'll reconsider my position. 
Click to expand...
Rumors say, buy now, rates will drop, prices will soar, supply will drop even more. Refi and sing.

 
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