All Forum Posts by: Andrew S.

Montana is back to normal evictions for non-payment of rent. Federal housing (FHA loans, section 8 HUD, and similar) I believe cannot be evicted yet.

Hey everyone,

I've been holding a house hacked duplex and a 6 plex that I purchased with a commercial loan a couple of years ago, both in my personal name.  I do the property mgmt and most of the maintenance myself.  I read about the lack of separation between myself and the 6 plex based on myself doing most of the work.  I've been keeping a $1M umbrella policy + 300k liability with home owners as my protection.  

I believe my commercial loan can be transferred to an LLC without any issue. If I were to get sued in my current situation - I believe the case would have to be above $1.3M before I would have to personally pay out / potentially lose my properties (or other assets).

Curious if others are using a similar strategy? Do I gain any real protection if I transfer my 6 plex to an LLC? I assume I'd have to be diligent then to keep financials separate, do additional taxes, etc.

Thanks

It probably has a bunch of deferred maint since it's on the market that long

Can't tell if this is an inherited tenant? If so, you have to comply with the existing lease. If not, then bummer you and your PM didn't communicate properly.  Change the lease terms at the next renewal (month or annual). 

Definitely clean. The cleaner and generally nicer the apartment, the nicer the tenant.  You can do some minor improvements now and some later on.  

I have a credit card that I use only for my rental business. I got a new card after my card was hacked and my auto pay was cancelled.  I got a ~$40 late fee applied, can I deduct this? 

I keep a $50k HELOC that I keep for an emergency fund in case of a major repair needed (have cash as well). Can I deduct a $50 annual fee to keep this?

Thanks!

Since you're under contract, I would add into your contract that the current tenant will be out prior to closing.  Then it's the current owners problem and not yours.  Might delay closing by a week or a month, but it will get done. 

Tenants seem to take less care of the property on average. Most people don't value free things.  The direct deposited portion of rent is nice.  Depending on your area, you can charge about market rent to section 8.  Which will help alleviate the costs of the (on average) lesser taken care of property. I'd get a verification of rent rolls, date the tenant paid.  Copy of bank statement section or something similar.  

It's a minor pain to paint the small gap above cabinets.  I'd prefer no filler and uppers to go to the ceiling if it's normal height. Even if I have to use a step ladder, who can't use more storage. 

Tell him if he pays on time for 12 months at his current place, you'll allow him to rent the bigger place