All Forum Posts by: Brandon Palmer

Hi folks.  My wife and I are starting up a new business with an target open date of Jan 2023.  We are considering renting a space to use but also have an option to purchase a building which looks like it will fit our needs as well.

I'm looking at 2 options and could use some opinions:

1) The business buys the building and just pays what ever debt service is required

2) we setup a new LLC which buys the building. The business LLC then pays rent to the property LLC.

We would be the sole owners of both LLCs either way so I suspect the tax / deductions wouldn't really matter. It may be worth us having the building ownership in a separate LLC for lawsuit protection reasons.

A further consideration is that we could eventually be in a position to sell the business and having the building in a separate LLC would allow us to keep that as an independent revenue line.

Thoughts folks?

Thanks all!

Thanks Asnish. 

Hi folks!

We own a piece of land (all cash, no loan) which we are considering selling.  We bought it a few years ago and it's appreciated well in that time.  If we sell it, can we 1031 the gains into other properties?  We're considering taking the sale proceeds and purchasing some more rental properties with it.

I know that if we sold one of our rental properties, we could 1031 that, but what about just land?  Do all the same 1031 rules apply to land that they would to another property?

Thanks all!

As further information, the current lease provides for a 90 day notice period to permit us to market for new tenants. 

@Theresa Harris  They have only been there for this portion of their one-year lease.

Hi BP friends!

We have a family (2 parents + 1 kid) who are renting from one of our SFRs.  Their lease is currently expected to end in mid-May but they are also building a house (we knew this coming into the lease) which they are expecting to move into in October / November.

They have asked that when their lease ends to move to M2M and we're trying to decide how best to respond.

• - They are paying a bit below what we think the market rate would be (we are/were expecting to raise rents ~ %8 when they left)
• - Them leaving in the fall makes the property harder to rent
• - They have been perfect tenants with great credit / etc. Zero complaints about them

Options as I see it:

1. a) We could ask them to sign a one year lease at market rate (that feels super unfair)
2. b) We could allow them to keep paying at their current rate and allow the month-to-month
3. c) We could ask then to sign a lease until a safe / known date (maybe December 1?) and charge them market rate.  We then carry the risk of the December rental which feels high-risk
4. d) We could charge them market rate + 1mo vacancy risk amortized over 6mo (that would look like a considerable rent raise for them but I think the tenants could handle it)
5. e) Something else I've not yet thought of...

Any thoughts / ideas? What seems the most fair?

Thanks everyone!

Hi folks. I have an SFR on a 1year lease which was executed by an unmarried couple (both folks are on the lease and either could have carried the lease by them self).

One party is moving out and the other person is willing to accept the assumption of the lease for the remainder of the term.

Any ideas how best to execute the lease transition? I can have the remaining person execute a new lease for the remainder of the term but how best to early-end the current dual-signed lease?

The security deposit came from the remaining person so that should be fine.

Thoughts?

Thanks all.

We have a newly purchased 3/2.5 SFR (with really good schools) and too many applications! (I would love to raise rent on all the applicants but that seems uncool).

Group a: couple with 3 kids, self employed but sufficient income, just sold house, wants to pay year in advance. First to see the unit, last to submit application. Has been calling a few times (before they ever filed out the credit report). Closing on home sale aug 15.

Group b: couple w 2 kids, not great credit, ok income, have rented for years. Second to see property, first to apply. These folks have backed out due to some issues in their credit check

Group c: older couple, just sold home. 3rd to see the property, 2nd to apply. Only one person works, sufficient income, great credit. Communication chain has been strangely quiet after application and initial questions but seemed very excited. Closing on their home sale aug 15

Group d: couple w 2 kids, just sold home, great income, good credit. 4th to apply, have not seen the property. Want to move ASAP but are fine with our aug 1 date.

I would expect a, c and d all to only be 1 year tenants.

I’m struggling a bit with a choice between the tenants. I feel a bit guilty if I accept d even though I’ve been communicating w c a bit already. I’ve not met d in person but suspect I could.

I’ve told d I would get back to them by EOD today.

Thoughts / opinions?

Thanks everyone!!

Hi Adam -- I've seen a healthy number of requests for shorter-term leases for the SFR properties we own (around Madison) -- mostly due to "we just sold our house and are looking for a new house" (or are building).

I see tons of for-rent / for sale signs on commercial office space around my general area.  What are folks thinking in general about buying now?

Half of me says "there is a reason no one is renting and buying would leave you with the same empty / unrentable property and the market will never go back".  The other half says "It's a great time to buy cheap as long as we could weather degraded rental income or are willing to carry the property for 1-3years at somewhat of a loss and things will recover great".

What are folks thinking?