All Forum Posts by: Alexandre Marques dos Santos

@Dale K Poyser

I would try to make it under code. Maybe a good lawyer will give you a light. A decent appraisal if not going to your house, wont count that bathroom. Then you plan to have another room, it wont count as well. And in order to sell it you will probably need to have it regular... so maybe it the time to do it ...

I would definitely talk to a lawyer

@Christopher S.

Sincerely i would treat as a business. If a member wants to use, book as any tenant. It will pay, of course, but after while will receive some back as an investor in the business.

That will avoid those over using it and killing the short term business you are building. Or if they over use it, they will pay as any other that rent the unit, and not affect the one interested in the business.

I have SFR in LLC and thought to be hard to get financing using the vehicle. Most asked to move to my name and later on put under LLC.

Finally, being a business will have “shares” to any partner and disclaimer of activities, operational agreement and will definitely avoid future disagreement.

Good luck

@Kunal Domakonda

You nailed it. Either one or the other will drive you to same result. 200/mo if used to quickly build equity, will allow refinance and more cash to purchase a new one. Or you can just save it towards to a down payment. Also managing a portfolio, its more than 1 single property giving you CF.

My properties are giving more than 200/mo so i can save quickly. Also having a short term financing (like a Heloc), i pay down the usage, so the cash goes towards to equity while i dont have the cost associated to a refinancing...

@Tom Jensen

Sorry if i sound repetitive, but will try to wrap up some concepts.

1) WL IS not an investment. Its a smart product that gives protection beyond the usual investment. In the first years interest is lower to pay for the insurance embedded. After several years interest grows and the insurance declines ( your cash value is higher therefore your insurance needed declines)

2) having said that, WL should not be acquired TOWARDS to invest in RE.

3) if you have a WL, then your strategy works perfectly. You have a growth in your cash, and can use it to leverage your investment. Someone mentioned to access banks instead of use funds from the WL company. That probably will give the best flexibility and the best return. While bank will look as a safe asset and will charge low interest, company charges higher rates ( higher than paying you). Then you can use cash flow generated to pay back the bank’s loan. If you paid it down, you can always lump sum some money towards WL, but is limited to the size of the contract.

Dont get to think WL as investment. Its a savings account WITH insurance that guarantee your family in case of a death.

Finally, if you cant keep up with capital commitment you initially setup, you can always change the terms of your WL, dropping insurance targets AND capital commitment, with no major loss. I have done that and i am very happy with the new terms.

Best regards

@Zoran Domazet

If you have in written you have postponed the rental for Aug31st, and they agreed, then the first noticed became not valid.

On the new rental search they should be aware the were tied till Aug 31 st. They should actually try to rent to start after Aug 1st. I wonder why they did not do it.

Also having found the new property, they would have contacted to you and ASKED if they could leave the property before, at least would give you a bit more time to put the property on the market.

I cannot tell they did it, but i had tenants that wanted to keep property Closed ( avoiding showing the property in the last month) without paying the extra rent ( my contract gives them the ability to pay extra for not showing the property in the last month of the lease). your case presents a similar situation...

I would charge the Last month. This is not a PENALTY. Its a contractual obligation, that protects BOTH, tenant and landlord.

What if you have found a great tenant that wanted to start in Aug 1st? Could you kick them out of the house with 1-2 weeks advance noticed? No! So why could they do that and throw it on you?

@Matt Camilliere

As all of us, #2.

I will add a reason, above all mentioned.

Cash flow allows you to quickly add another property and increase business quickly.

Good luck

@Stacie Pearman

BP has a section to it, at least i was told this

@Stacie Pearman

Why dont you put numbers here? If the numbers makes sense to an investor, you can find someone interested ...

1) price

2) closings

3) fair rental price

4) insurance

Etc

@Shiloh Lundahl

Kind of dont like your example. The 1031 defer the tax, but your tax base on the new one is lower. You still have the tax.

The same example works for stocks. If tou Sell apple and buy amazon anyone will have to pay the tax. And nobody avoid doing that.

The reality: its an incentive some ppl overdue. It should have a limitation. And it is coming.

I dont think the 400k is the amount of gain, That is capital gain, not income. I think its rather the income an individual makes per year. In that scenario, i believe the amount of ppl affected will be very limited ( Mr Trump wont like it!!)

The thing that bothers me more is the discussion to INCREASE tax itself. Easy path democrats always ended up doing

@Sujata Vaidyanathan

Yes, you are heading into trouble. What if they come and tell you you need to take down the tree? Will you pay for it? Or will you hire someone to look and get another opinion? This situation is similar to me as “ dont ask if you dont want to hear the answer”

If you dont care about the tree, just tell your neighbor he can pay to take down the tree after get town permit, if hes too worried. Maybe he counteroffer to pay 1/2... lol