Property: 440 W 68th St, Los Angeles, CA 90003. Purchase price of $749,000 and no construction  improvements needed, except you need to purchase $5,000 worth of appliances.

Redfin Link: https://www.redfin.com/CA/Los-Angeles/440-W-68th-St-90003/home/7278070

Loan Assumptions: 40% down, 6% interest rate, 30-year fixed rate and 2 points loan cost.
LLC fees: Setup fee of $500, first year LLC license fee of $800, Statement of Information of $20, CPA fee  of $500 and a minimum business checking account balance of $3000. (Onetime payment for all LLC expenses)
Rental Income: Assume the single-family house will rent $3000 and the ADU will rent $2000. Property operational cost: Landlord pays water (assume $50 per month), property insurance of $900 per year, property tax rate of 1.25%, maintenance cost of 3%, vacancy of 3% and mgt fees of 5%,
gardening cost of $50 per month.

 
Problem: You are about to purchase this property on your own, but it is too risky. 

You decide to  purchase a duplex with a partner. You decide to setup an LLC to hold the property with another  shareholder. 

Two shares of 50% each, how much total funding would you need and for each share? 

Answer rating: 100% (QA)

Assuming that the purchase price of the duplex is the same as the singlefamily house at 440 W 68th S... View the full answer