All Forum Posts by: Brian Smith

 Thank you for the reply! 

what you're saying makes perfect sense

I'm going to give James a call.

thanks!!

Hello everyone,

This past January I purchased a property to flip. After three months of renovations the property is set to hit the market on April 1st. Most of the work I have completed myself. The total renovation cost so far totals around 15k. The ARV is 320k, purchase price was 160k. Im looking at around 160k return. Now, the part that isnt exciting is the tax liablity that comes along with that. I ran the numbers last night and it seems that I will need to pay 60k in capital gains tax.

I'm exploring ideas to avoid paying the tax.

Would keeping the property as a rental and cash out refi. be a better option?

Any other suggestions?

Thank you in advance!

 

 Thank you for the reply. 

The mtm was from me. And yes I can see their confusion and frustration

Yes, I suspect illegal activity. I like to provide safe and family friendly housing.

I used their "last months" deposit for September as this is considered their last month after being served the notice. The previous landlord held first, last, and security which I was credited at closing.

I found that estopple certificates are great for alleviating this exact issue. On an estopple the tenant indicates what they paid in deposits, current tenancy status, appliances owned, etc. Then the current owner(seller) would sign off on it granted there are no discrepancies. If there are issues the seller is responsible for rectifying those issues before closing. Be sure the deposits listed on the estopples are on the CD at closing. Just food for thought

Try to locate a copy of the lease or a bank statement with her deposit on it as others have mentioned.

Best of luck.

Hello,

I am seeking advice for a current situation I have found myself in. New landlord here, please bear with me. 

Questions for later: 

• Is the high level of activity an overreaction to a nonissue?

• Should I allow more than an extra month if it comes down to it?

• Do my decisions make sense to a seasoned landlord?

• How should I handle accepting rent payments for "extra" time?

• With the thought of court in the back of my mind. How can I best avoid such a set back? 

• Suggestions for improvement please.

Here is the back story:

I recently purchased a three family with inherited tenants occupying two of the three units. One unit currently being renovated. Both occupied units signed MTM agreements per my request. (I have not signed and returned a copy to the tenants) Within the past week or so while renovating the vacant unit, Ive noticed an unusually high amount of activity pertaining to one of the occupied units i.e. vehicles stopping at the property for short periods of time, the tenant leaving as a passenger in a vehicle, then returing on foot, different people coming and going on foot. Something seems suspicious... Fast forward to present day, the tenant in question wanted to pay rent for September. I told the tenant that I will be allocating their last months rent, that was transfered from the prior landlord, for the month of September and served the tenant a 30 day notice to quit (no cause). Quick side note, their last months rent is not currently in escrow due to the tenant not being able to provide identification. As you can imagine they were displeased that they were served a 30 day notice as they just signed to continue tenancy on a MTM basis. The tenant made the point to say it will be a difficult task to find new housing in 4 weeks and brought up the idea that the courts would likely let them stay longer. I explained that I would like to see them searching for new housing however if it came down to them needing an extra month we could discuss that as an option in the future, although it wouldnt be establishing a new tenancy.

 Thank you for the guidance. I will start making calls tomorrow.

 That's some great information. Thank you I will be exploring further!