All Forum Posts by: Bill Henley

As of late 2019, I owned four residential rentals. Three were straight rentals, and one 3-unit building I ran as an AirBnB. Between December 2019 and April 2020, I sold all four properties. Now I am filing my 2021 return. In 2021 I had no rental income and no AirBnB income. But I have about $20,000 in leftover carry-forward deductions. Can I apply these deductions to my 2021 income?

Look at the leases. They should specify how notice is to be delivered, usually by regular mail.

Dropping of the other shoe: after a second open house on Easter Sunday, and after 12 days on the market, we got four offers of $1 million or more. The winner waived all contingencies -- inspection, appraisal, finance, the works -- and was also the most dollars. For us, more than 400% appreciation in 20 years. Pretty crazy for a 1,100 square foot 2+1. 

Is it not also a requirement that the proceeds of sale be paid to a 1031 intermediary, not to the seller? What is the effect if escrow has already closed and the proceeds were paid to the seller?

If Airbnb is outlawed the homeowner might try corporate rentals: rentals of 30 days or more to companies, hospitals and universities who need to provide housing for long-ish but not long-term out-of-towners, e.g. visiting nurses, physicians, and scholars, and employees transferred from another state. You could also lease the property as a traditional furnished rental. I wonder if this won't be a growth market for younger people who like not to be tied down, either to a house or a house full of furniture. You can also sell. There can be many exit strategies, if Airbnb doesn't work out.

Insurance companies won't pay to defend a breach of contract case, and they won't pay the damages. Insurance companies might pay to defend an accusation of fraud, but they won't pay the damages. Insurance companies might pay to defend an accusation of other intentional misconduct, but they won't pay the damages.

In her Bigger Pockets podcast Zeona McIntyre mentioned her blog.  If you click the link you'll see that she shares a lot of details about getting up and running in Airbnb. The posts are in the context of advising the reader how to be a "Co-Host" -- essentially a third party Airbnb manager -- but what they do is to list the many boxes a newbie needs to check to get started.

All the tut-tutting is not a useless exercise, but this forum is about the free exchange of information. If the only people who are allowed to participate are those who have never hedged on a Building Code provision or a Dodd-Frank regulation, ignored a zoning sub-sub-subpart, taken an envelope-stretching tax deduction, etc., I expect it would be a much smaller group.

I just downloaded Zeona's podcast yesterday and listened to it on the evening commute. What a wild coincidence! My wife and I are currently in escrow on two St. Louis properties, with the intention to run both as Airbnb's. They're about three miles east of Zeona's. A Queen Anne single family converted to three units in Compton Heights, and a duplex in Tower Grove East. I expect that furnishing and equipping 5 living rooms, 5 kitchens, 9 bedrooms, and 7 bathrooms, all at one go, will be a challenge. Not to mention a new roof at the duplex and all the usual new owner, between-tenants, make-ready stuff for all 5 units. With checkbook in hand I'll be taking it on beginning early July. Thanks for the inspiration, Zeona.

The worst thing to do would be to get into a legal dispute with the brother. If the brother does file a probate case and is appointed personal representative, his job is to collect all assets under the name of the probate estate, and to tally all debts. Because the term of this oral loan is that it is payable at the time of sale, the brother could record a lis pendens. This is a formal notice that title or ownership of the rehab property is in dispute in an active litigation. It creates a cloud on the record title that will prevent sale of the property until the dispute is resolved. From the description of the loan, there is no interest running on the principal and there is no profit sharing at the time of sale. The brother therefore has no interest in letting the loan play out according to its terms. How do you create that interest? Offer to modify the terms to include interest or a piece of the profits.