All Forum Posts by: Brandon Koser

@Mike D'Arrigo

Thank you everyone

Sorry for the multitude of questions. Trying to understand Marion tax code as I just realized there MAY be a tax exemption available. 

Does an investor who is a veteran at 80% disability get any property tax deduction and if so how much? 

Does it require it to be a primary residence or can rental properties qualify? 

Is there a limit on the number of properties? 

If a property is placed into an LLC-S that is owned by the veteran does that still qualify for an exemption?

I doubt it, but could an exemption be applied retroactively? (One property was primary residence for a few years, so there's that too)

Thanks all

Hey everyone. Hoping for some advice/help. Have a property in a low income area that I bought with tenant in place under Section 8. Put up with her lack of care of the property for probably longer  than I should have because the guaranteed rate was making it worth it.

Well it finally got so bad we had to evict her after the last Section 8 inspection. Gained control recently. My contractor went out and said it would be $17k+ to make rentable again, even to Section 8. I had reserves but not this high. I can pay outright but it would all come out of personal accounts then.

Cash flow was good prior to this obviously but at such a high hit, I'm at a big disadvantage now.Still leveraged fairly high as it's been less than 2 years since purchase.

My question is what would you suggest I do? I don't think I could sell it without a larger loss but I haven't looked for offers yet, just informal market check. Could I file an insurance claim for this? I have a pretty good company in general (USAA) but I'm not sure how much they'd consider "cosmetic" and not pay and then raise my rates across the board anyway.

Any other ideas??

Thank you

Right now I have a few properties and I am putting offers on more. Luckily I don't need the income from the rental properties to live off of yet so what I've been doing is channeling all the funds after PITI and management (and charged maintenance for that month) into separate accounts for each property. My question then, is there a good time to stop doing that? For instance, if I stashed away 10% of the property value or a certain fixed amount in the account, can I then start diverting funds to a general account and snowballing the excess funds onto individual properties or as personal income? I understand all our models account for the various expenses ,capex, vacancies, etc. but they usually run in perpetuity to put away a certain amount every month. At what point does the BP community feel it is appropriate to not do this (aka what size safety net) where we no longer have to worry about the monthly flows for an individual property? I understand it may be personal risk tolerance preferences, but if there is a general consensus or rule of thumb that would help. Thanks

Hi everyone. New to investing here. Have 2x SFR in Indianapolis grossing about $1k/month after PITI and management. I've been looking to expand and trying to find new deals. I'm out of state looking for cash flow buy and hold rentals.

My agent just brought a small multi (2-4 units) and small complex (5-15 units) to my attention. I could buy either or both. I hadn’t planned on doing multifamily so early but the napkin math quickly caught my attention. Before I jumped on this though I was hoping to get some advice.

My understanding is all or 95% of the units are currently rented. They are small (most 1 bed, a couple 2 and studios) with low rent per unit. Tenants have been long term (shortest over 1 year). Annual GRM for small is 4.48 and the complex is 2.46. Just based on these I knew I wanted to at least look seriously.

I have a number of concerns though.

1. It’s not Indianapolis. I’m not familiar with the market but a quick google search shows it seems to be a declining, small rural town with no major industry or job producer. I’m VERY worried that if/when a vacancy arises, who knows how long it would take to get a tenant.
2. The seller has been managing himself and has been paying utilities on one unit of the small and ALL utilities at the complex. I’m not super comfortable with tenants having no skin in the game to conserve. It’s an older building. I don’t know if individual metering is even possible, and even if it was, how would I do that, would it cost an arm and a leg, and would it alienate the tenants whom I don’t want to leave due to concern #1??
3. The reported operating costs are pretty high. I’m awaiting details but it’s currently listed at 55% of rental income. I assume higher. I would have to add management even if I somehow addressed the utilities issue. The multi comes with a small parking lot across the street. Like I said I wasn’t planning on multifamily yet. What do I need to worry about liability? I’m assuming I can’t get regular insurance? Where do I start looking? I’m not sure about delayed maintenance/ capital expenditures that will be needed.
4. Financing is a bit new as well. I’m ready for a conventional purchase or refinance on a small enough purchase but can’t quite afford the complex. Where do I even begin to look for a loan for the complex because I can’t do a normal mortgage with this?

I’m sure there are other factors I haven’t even thought of yet.

Any and all advice is very much appreciated.