All Forum Posts by: Brady Boyer

https://www.irs.gov/forms-pubs/about-form-1065 

Yes, you must file a form 1065 (information return) and then also include any income / deductions on your personal return. 

What was the reason for doing this? You should consult a lawyer but assuming both your and your husband are general partners in the partnership you still have unlimited liability if you are sued. As this is the case you could have just continued to operate the rental in your name. 

@Matt Crusinberry thanks that is helpful. 

@Neil Hunter I don’t fully understand it but you can read more about it on there website. From what I understand it has a code that links with your account and then using an algorithm it generates other codes with out being connected to internet. It works very similar to how a token works for most corporate vpn networks. Not sure if you’re familiar with that. The only down side to it not being connected to the internet is you don’t get updates on when keys are picked up or dropped off unless the key receiver uses Bluetooth to unlock the lock. 

I am trying to acquire a 4 unit property and the bank is telling me they won't accept the NOI appraisal method only the comparable method. There aren't a lot of 4 units in my area so the comparable method is not reliable. Are banks not accepting the NOI method or is it just the lender I'm working with?

@Alex Smith also have the below questions:

1.) Do you handle properties with multiple units? Do you have a lock box for each unit? 

2.)Do you also use this method if the property is currently rented with a tenant. I.e. would you let a prospective tenant wonder around a current tenant's  (who has told you they are not releasing) apartment unsupervised? 

I recently bought a igloohome lock box which doesn't use wifi or cell service. I use it for my airbnb. You can generate codes from an app on your phone and tenants / whoever can pick up keys.  It does require batteries though (it says they last a year), so they would need to be replaced periodically. 

I am also about to close on a property that I am attempting to manage from a distance so I'm also intrigued by Rently @Alex Smith what was your bad experience? Do you call them while they walk through? How do you know they return the keys? Does it require wifi? 

I'm currently going through the same process and gearing up to start managing a new property I am planning to close at the end of Feb. I decided to seek legal advice as I didn't want to get screwed starting out.  I sent the lawyer the current tenant leases which is a standard PA issued lease and asked him to make it landlord friendly.  I plan to make tweaks to it over the years as issues arise over time.  Figured it was worth it to spend some money up front to prevent a nightmare down the road. 

@Kyle Mitchell I recently was undergoing diligence on a 4 unit and I also requested bank statements (as you suggested) to verify that rental income was actually coming in. I didn't view the seller as highly sophisticated and wanted to verify his financials. However, he also denied my request. I ultimately moved forward based on his word of what he said was "past due" because it was a good deal but anyways one of the potential answers that someone provided to me when I posted about this in the forums was that he may potentially have other properties using the same bank account that he doesn't want to share. 

I have looked at days on the market before as a potential negotiating tactic and also have looked at days on market for rental rate analysis when researching a market.  If I see a place that hasn't rented in 2 months its likely the rent is over valued / the property is less desirable in some manner.  However, if I was you I'd list it ASAP and then if the listing doesn't get traction then simply just take it down and put it back up after a day or two.