All Forum Posts by: Tyler Haanen

Each property ideally has its own business bank account, as well as your master LLC.

Question, is the master LLC acting as the property manager for the other properties?

Changes some of my answer below, but here would be most of the types of transactions you would have in these accounts and between them.

Property transactions would be: all property specific rents and expenses, allocated expense transfer to the master LLC and transfers to master LLC bank account for profit AND/OR property management fee.

Master LLC transactions would be: Shared expenses going out, reimbursements/transfers from properties for their allocated share of those expenses coming in, the transfers from your properties deemed as profit AND/OR property management fee and then transfers to your personal accounts deemed as owner distributions.

Other transfers that could occur is if the master LLC needs to transfer to the properties for capital expenditures above and beyond the reserves you might leave in their accounts. Could also be transferred from your personal account to your property accounts as well.

Hi all,

I am wondering if someone has dealt with a similar scenario and can offer advice:

I have a tenant with their lease ending in November. They are in the home buying process but may not find a home until next year. I am curious on how I should handle the news that they have an accepted offer. Should I then start showing the home? What if their deal doesn’t close? 

Plan currently is to offer a six month lease when their current lease ends to have it end in summer, with the thought that at any point they would give me their notice of vacating hopefully with atleast 30-45 days to find a new tenant. Just not sure if I should worry about the deal not closing. 

Well I think you should only increase the rent if the current rents are under market value for the condition of the units. Otherwise a vacancy because of an increase in rent could be worse than a $600 dollar per year increase. 
I try to consider my expenses separately from my rents. You have two levers. You have one you try to use to lower expenses and one that you try to use to increase rents.

Just because your expenses increase does not necessarily mean rents increase dollar for dollar. 

Hi all, just curious, what is a reasonable cost for replacing both an exterior door and storm door plus labor?

I've been busy with a newborn so I kind of got lazy with a Home Depot quote. They came in at around $1,200 for doors and $800 labor.

I am in the Milwaukee, WI area, for reference

Thanks in advance!

Okay thank you. Yes, the other unit is livable, just outdated.

Hi all,

I am curious on everyone's opinion on my scenario. I have a duplex that I am considering refinancing to cash out for the renovation of one of the units. The other unit we have completely updated and we are happy with the results. Since purchasing, we replaced the roof, furnaces, water heaters and AC units. There's a few common area things we could do such as replace exterior doors and paint the outside of the house.

Is it a bad idea to try to refinance prior to renovating the other unit? Should we try to wait for the other items to be finished? Potentially we could do some of them prior to if it helps boost the appraisal.

What is everyone's best method of determining the value of other recently sold properties? Hard to say whether our property is on par with recently sold sales prices.

Thanks for your time answering this post.

Hey all,

Quick question for everyone, how do you reach out to prospective tenants? Do you just use Furnished Finder messages, email, text, or all three? I guess I have been hesitant to bombard people with the same message three times. Perhaps does anyone just call them right off the bat? Anyone do follow up messages if they didn’t get a response the first time?

Thanks!

Hi all, 

My wife and I just started renting out our furnished unit the beginning of this year and were lucky enough to get a tenant in right at the start of the year until the middle of June 2023. With that being said, we have been acting a bit picky by only pursuing 3 month long stays or more with our current search for someone else. Should we not care as much and start including 1 month stays in consideration?

We are housing hacking a duplex with this strategy, so I suppose the turnover (though way less than an AirBNB) is what we are worried about since we do all the cleaning ourselves.

Our main focus has been reduction of vacancy. We have learned that it is way less comfortable for us to have AirBNB guests as opposed to medium term renters that we get to know more beforehand. (We had a 1 night AirBNB stay on New Year's Eve the day before our medium term tenant came in). We really want to just fill gaps as much as possible with 30+ day stays.

What are your strategies for filling vacancy gaps? Do you target FF leases first and then fill in with AirBNB? I find that we end up denying AirBNB longer stay requests because it leaves weird amount of gaps that would be easier to fill with a FF lease first and then with shorter AirBNBs.

Thank you for taking the time to respond.

I worked at my mother in law’s group home for a few years, so I guess I would ask what you mean by getting into them? Also I think you have to be more specific because people have different interpretations of “group home”. Specifically, the one I worked at was for young boys in transition away from family for a variety of different reasons. 

If you are just trying to lease to existing group homes then I’d imagine it’s like any other commercial lease. They have a lot of different inspections they get regularly and I remember when she was trying to expand they wanted her to have a certain amount of reserves before allowing her to open a second location. This probably varies from state to state.

In terms of opening one yourself? That would be a totally different business venture and definitely challenging!

Prorating shouldn’t be too big of a deal. There are a number of ways to calculate it that get pretty close to each other. I would collect a full month and then get the pro rated portion of the month on the next 1st of the month. Ending prorated month can be collected again on the last 1st of the lease term.