All Forum Posts by: Alex Scotte

@Chris Seveney and @Don Konipol, that would be great if you know where to invest that would bring more money than you would save by paying down the mortgage. I've tried stock market and never really made that much. I've come to realize paying down my mortgage is the best investment I could make.

@Charlie Hardage, how is paying down the HELOC better than paying down the initial mortgage without the HELOC? If you have extra cash, payoff the initial mortgage without adding more loans. You would end up saving the higher interest rate on the HELOC as well as closing costs. Getting a loan to payoff another loan with a lower interest rate doesn't make any sense.

@Dmitriy Fomichenko

Thank you! Just for my knowledge, if the roth IRA is profitable, would the profits be taxable and incur penalties?

The money I used to start the IRA was post-tax and the value of the IRA is less than what I invested. I was thinking of waiting for it to even out, or close to it, and re-invest the money somewhere else. Are there penalties and taxes associated with that since the total profit is none, or close to it?

Hello all, 

I have a prospective tenant who wants me to re-key the front door. I don't feel it's necessary because the prior tenants are trustworthy and also have moved out of the city. It sounds like the tenant will sign the lease even if I don't re-key but is asking for it "to feel more secure". What are your thoughts? 

You make some good points. I will have the inspection done before saying anything to the tenant but if that doesn't turn up damage, there can only be one culprit. The tenant had his computer right there in front of the damaged part, although he told me it is not water cooled. I was also thinking it could be a desk fountain or plant, etc. I don't think I should swallow this cost. I've been good to these tenants and I feel they should take responsibility if it's theirs. Also, checking for termites in the damaged area was extra and HOA is charging me for. They weren't necessarily digging into the wall for that reason. There's another portion of the same wall that is questionable. This might be more than a $200 fix.

It's not really my opinion. There are splashes on the wall which the termite guy pointed out. When we were alone, he told me he thinks it was the tenant (but I don't think he would go on the record for that just because he's the termite guy). I have pictures of the splashes but they cut through a big portion of it to determine there are no termites there. There are only so many reasons that can cause this, either termites, exterior crack, or by the tenants. The wall doesn't have any pipes going through it. I can have an inspection for the roof or stucco is cracked/leaking, but HOA will most likely charge me for it. I figure if I email them the pictures maybe it will avoid the extra expense. It's really for them but also saves me the hassle. What bothers me most is that I've given them a good rate and have always fixed things when they come up, and as mentioned, these are "good" tenants.

There is some water damage to the drywall in my rental unit. At the same time, there is a termite infestation. Today, they did the termite work and verified that the damage on the drywall is water damage, not termite damage. When I looked at it closely, there is water stains in this area and the termite employees also noticed it. However, my tenant did not fess up to it when I showed it to him. I'm thinking about getting the exterior inspected to cross that off the list as a potential cause (ie, leaky roof or cracked stucco). However, every time I get an inspection HOA is charging me for it. I took pictures and they show the water stains.

My tenants have been easy going and good tenants up to this point (they pay their rent and no complaints). However, this is their mistake and should be responsible for it (they actually broke the lease by trying to spackle it). I am thinking I will send them an email with the pictures and let them know that if the inspection shows no exterior damage plus what the pictures show, then they will be responsible for cost of the inspection as well as the repairs. My concern is if they withhold rent. At the same time, if the housing market keeps going up next year, I will be selling at the end of their lease (in June). If they are unwilling to cover the costs, I could withhold it from their security deposit at that time.

Any advice? As I understand it, the COVID eviction moratorium does not apply because they have to show financial hardship. Is this correct?

Hello, I have a rental which termites were discovered. There is damage to a large area of the drywall. HOA said property insurance would covering everything up to the paint. When I read the CCRs they have a specific section about termite repair which sounds like they should be covering everything as Common Expense. I have attached this rule below. Am I misunderstanding something? Should Common Expense cover the paint? My bigger concern is the texture on the drywall. I'm not sure if they will be covering that either. Also, they are not letting me see the proposal from the termite inspection company until after the Board approves it.

I have a rental property which we just found termites today. This is covered under HOA so I will be contacting them for repairs. However, most likely this will mean my tenants will have to find another place to stay for some time (fumigation can take 1 day to 1 week). Am I obligated to compensate them for a hotel stay? I know her parents are very local but it's a couple so I don't know how that works.

 Thank you!