All Forum Posts by: April Eilers

This is super helpful, thank you! Guess we owe our tenants some refunds on previous late fees. Bummer but good to get it straightened out. 

Thanks,

April

Hi All,

A few questions... 

1. Does Virginia Residential Landlord Tenant Act Apply to Landlords that own fewer than 5 properties? I saw some older articles that said small landlords are not subject to the Act, but I'm now reading the Act itself and I don't see any such global exemption for small landlords.  

2. Am I reading this correctly that I can not charge late fees that total more than 10% of the monthly rent even if I have a different amount in my lease and only own 3 rental properties in Virginia? My current lease states that my late fee is $25/day following the due date so if it was 10 days late the total late fee due would be $250. The monthly rent is $1800, so is it correct that I cannot legally charge $250 and would be capped at $180 max per month regardless of how late the rent is? 

3. I see that there is a 5 day grace period enforced by the Virginia Residential Landlord Tenant Act as well. If unpaid past the 5 day grace period, can I back charge for the late days within the grace period? So for example, if rent was paid on day 7 after the due date, am I entitled to ($25 x2 = $50 in late fees or $25x7 = $175 in late fees)? 

Thanks a bunch!

April

We are purchasing a flip property in Cape May, NJ and the septic system may be undersized given the addition of a guest house to the property. Does the septic system have to be updated prior to sale to qualify for conventional financing? 

Hi, has anyone used a flat rate listing service that syndicates the seller's phone number directly to Zillow instead of the flat rate agent's contact info? I want to get published on MLS but want to be sure unrepresented buyers from syndicated sites are sent directly to me.

Hi! Could someone please clarify the following: 

Assuming we purchased a property for 75k cash 5 years ago, sold it for 300k in 2022, reinvested 200k in a 1031 exchange, and were left with 100k boot....

1. Can we deduct the original purchase price of 75k from the 100k boot to reduce the taxable gains to 25k? If not, why not? 

2. Is depreciation recapture required in the case of partial 1031?

Thanks!!! :)

Hi BP Community! We are currently doing our first 1031 exchange. We sold a property and our cash is being held by an intermediary (referred to as "1st Sale"). With the 1st Sale cash, we have purchased one property which we plan to hold as a rental. With the remainder of the 1st Sale cash (~100k) we are planning to purchase a property for 300k. So 100k of this purchase would be from our 1st Sale cash and 200k would be from a conventional loan. Our intent for this property is to fix and flip it within a couple months (referred to as 2nd Sale). So a few questions about how this would work and the tax implications...

1. If we buy this house for 300k, sell it for 400k, and wish to continue to avoid capital gains taxes do we then have to reinvest the full 400k (even though 200k of that was loan money)?

2. If we buy this house for 300k, sell it for 400k, and do not reinvest, what are the tax implications? A few factors to keep in mind:

i. the 1st Sale $100K cash 

ii. the fact that this house had $200K loan, and would now have $0 loan

iii. the $100k gain on the 2nd Sale

4. What is the capital gains tax rate for a short-term flip for 2nd Sale (1-2 months)? 

5. For scenario #2 above, is the short term capital gains tax rate applied to the full amount, or can the long term capital gains tax rate be applied to the 1st Sale $100k cash.

We need to figure this out before 2pm EST on 5/23. Thanks!

Fellow investors,

My husband and I are debating which area has higher vacation rental demand and future equity growth:

1. 1. Far southwest quiet side of Mount Desert Island (Tremont)

1. 2. Lamoine

We’re looking for some local expertise to provide some input. Thank you.

It’s a small world :)