All Forum Posts by: Beth L.

I just keep them in a separate account. I have to pay the interest out of pocket anyway so not sure that an interest bearing account is necessary.

Here is a calculator so you know exactly how much interest to give back:

http://dhcd.maryland.gov/Pages/RSDCalculator/Defau...

I tell them that if I can't confirm with them an hour beforehand then I am not showing up. 

I don't participate with Section 8, but in my research I understand that the office requires a copy of the lease and does an inspection. Since this tenant is already in place, they may only require a copy of the new lease (or an addendum until the lease expiration) and proof that you are now the owner. You want to make sure that you get the monthly payments now. (Not sure how a prorated month of ownership works with them. You may just get your portion of the section 8 rent from the seller at closing.)

I manage my own properties, but I heard that Ridgecrest is good. My real estate agent uses them.

You have them each fill out a W-9 and have them invoice you for the work performed. It would be wise to pay them by check so you have record of payment. Then you give them each a 1099 for payments made in that year. It doesn't matter if they are licenced or not, it is only to report money paid to someone else for services in the course of business. In turn, those paid will have to report it on their taxes and pay taxes on the income.

You still have time to do this for tax year 2015, as the 1099s are not due to be postmarked until January 31.

* Disclaimer: I am not a CPA or tax consultant. You should of course consult your CPA for all tax questions. 

I have a duplex with shared water. But separate electric. In our area, the electric can be put in the tenants name but the water must stay in the owners name. I just figure an average amount and include that into the rent. Makes it easy. Tenants haven't abused water usage. Even if the water is metered separately, since it has to stay in owners name, I would have to pay the bill then bill the tenant separate from the rent.

I haven't looked into sub metering, sorry.

If you pay someone for services in the course of business, you must send a 1099 for any amount over $600. I am a landlord and I send 1099s. It's not too late to collect W9s from your vendors. You have until 01/31 to send out 1099s. 

You can google the IRS site for more information and also talk to your CPA. They will know exactly what you should do.

@Craig Garrow I charge $25/application per adult. This mostly covers my background check. I haven't had any issues and this way I know they are interested. I use www.tenantbackgroundsearch.com and have had great success. In Maryland, landlord/tenant laws allow charges up to $25 for application fees.

@Account Closed the comps tell you what another person was willing to pay for a similar property, not what you should pay. Only the buyer knows what numbers will work for them. If the numbers only work at a much lower purchase price, then that is what should be offered. Convincing the seller of that price may be difficult or impossible, but it worked for me on a number of occasions. This is especially true if the property or seller is distressed and just wants out. 

@Christopher Giannino Comps may be good to look at initially, but there are so many variables that can change that price drastically. In my town, even going over the railroad tracks put you into an undesirable neighborhood and the prices drop. Something you can try, if you want to find properties that have sold, is using Zillow, type in your target area under the "Buy" section. Then under the "listing type" tab, select only "Recently Sold". You can also ask your agent to run some comps for you.

You should never pay based on comps. Offer what it's worth. Take current income from rents, if occupied, or market rents. Then all expenses. Work with the numbers until you get a return on investment or cash on cash return of whatever percentage you are seeking. I personally look for  8-10% at least. BP has an analyzer you can use for free or there are spreadsheets online that can be used for your due diligence.