All Forum Posts by: Andy D.

@Brad Larsen Reading this, I seem to have a pretty awesome PM. ;-) Actually, I know that. That's why he is (still) working for me.

@Stanley Parsley LOL But have you actually asked? Because they are obviously (at least generally) well networked and should be able get you some contacts. Mine does. ;-)

@Robin Hunter In paradise my PM would also be totally awesome in checking, analyzing and telling me what improvements I could/should do (I'm somewhat of a distant owner), organize the contractors and material, overlook everything, kick some butts here and there, provide progress reports and ultimately pay everyone involved and then invoice me accordingly. But, alas, I yet have to train him to do that! LOL

 @Leslie Pappas I'd presume that the "exit" strategy for such a DST 1031-rollover would be death? Or put otherwise: how could one get out of it without selling the beneficial interest and in turn becoming subject to (capital gains) taxation? Granted, I have not at all looked into the tax treatment of such a strategy after having put the money into the DST, but at first glance I see this to be the final move if and when one gets (older and/or) to a point where one no longer wants to deal with being a landlord as an individual but rather a purely passive investor. All this in the context of legally avoiding capital gains taxation (and inherent recaptured depreciation).

Those people "buying multiple houses per month" don't do so using mortgages - they buy all cash. Possibly do a refi down the road for some or go the commercial loan route. In any case, inquiries for mortgages are - as far as I understand - "hard pulls" so yes, they definitely impact your credit score. Then again, credit bureaus seem to treat these specific inquiries as less "bad" as the ones for e.g. car loans and such. So score seems to come back up rather quickly (assuming no other detrimental impacts).

In short: any loan you are getting that is processed via a financial institution (i.e. not via a private lender who doesn't pull your credit) will impact your score one way or another. Shouldn't really be a surprise, though?

You should of course check your local laws but - since lease will expire at some not too distant point in the future anyway - I would draft a simple paper that states that all parties involved (inlcuding PM!) acknowledge that party named on lease has changed to person X while leaving all other aspects of the lease unchanged (especially remaining duration).

Curious: the lease my property manager uses has "my" name on it. Not theirs. I'm the landlord. Not them. So why do your leases name the PM as landlord? Are you actually receiving any rent from them or are they legally keeping the money? ;-)

What @David Faulkner said. This is exactly how to best do it, at least when one has (high) income on which there is a decent amount of tax due (which, typically, also means that one can qualify for a refi).

Just for the sake of completeness: the money you are (somehow) investing should be money that surpasses a sizable emergency fund. So in other words: use cash flow to build cash reserves and only then use any surplus as described above. During times where banks actually paid some interest on cash or at least on money market funds it was much less of an issue to have cash sitting around. Then again, during these times the mortgage interest rates were also much higher. In any case, sufficient liquid funds are a must to cover e.g. CapEx, so there is no way around cash or cash-equivalent investment (i.e. money market).

And for anything else left after that: use it to help enjoy your life!

@Stanley Parsley How would you apply such a UV disinfection device to a whole building? Do you have to run around with the thing and point it everywhere or how does that work? How long would one need to "point" it to an area? How can anything under a carpet or inside the wall and so on get caught?

@Scott Davidson + @Linda Weygant Thanks! Good to know, albeit I thankfully have no need for it - unless I were to go the route of cost segregation, which I'm contemplating... Oh well.

...proof that one didn't know enough at that point in time (<-- giving it a positive spin)

...proof that one didn't pay attention to what one was doing (<-- giving it a negative spin)

...will always happen and are an integral part of a learning process (<-- to close with a positive spin!)

@Mike H. Very good attitude and approach. Just bear in mind that the topic "taxes" is really, really complex and unless you are into this "kinky stuff" you will not get it right. On this topic it is wise to spend a little money (heck, it's a business expense! LOL) on/for a professional - as it is generally for complex topics. It's money well spent. At least as long as it's a knowledgeable person!

@Linda Weygant Curious: you say that form 3115 will allow him to correct the mistake with respect to the depreciation. Understood. However, assuming that this correction, going back, would allow him to reduce his taxable income from his Schedule Es and, consequently, taxable income on the 1040s over the years - would he be able to correct those returns on this basis going back that far (he mentioned 14 years)? Or would he be limited to the (I think) 3-years? Just wondering. Thanks!