All Forum Posts by: Brian Pleshek

@Cody Fields.  Also, keep in mind that Cincinnati isn't Miami Beach, Florida.  The number of people wanting to go to Cincinnati for a short period stay is probably very limited.  I would go with the monthly deal.

Brian Pleshek

@Ronald Perich.  I have a CPA, but i'm in the market for another since she is 500 miles away.  I have since sold off my rentals in Maryland and only have ones in Cincinnati where I now live.

I did end up filing it.  It was quite a scramble to get all the data, but I had another hour before the post office closed.  :)

Brian

@Steven Hamilton II, but i'm still able to deduct the expenses though without issuing an 1099 ?  I was worried that if I didn't issue one and there was an audit, then my deduction would be disallowed or even worse, that I'd have to pay the tax myself.

Brian

Greetings everyone.  

I've had a SFH rental for over 15 years and have always done the work myself or paid a company like RotoRooter to do the work. This past year, I acquired another property and put in 15k-20k in updates, but this time, I used a contractor. This is a "guy" I found in home depot and he agreed to do the work. He works for others, so I don't think I need to deal with the issue of whether he's w2 or 1099. But my question is, do I need to file a 1099-MISC? My wife doesn't think so but I'm thinking we do since we gave him more than $600 last year.

Assuming that I do have to file it, how do I do it?  I can go down to staples and get a form and put it in the mail to him.  But do I need to send it certified or return receipt to prove that I sent it?

As far as filing with the IRS, do I do that electronically or do I just mail in a copy to them as well?

Thanks,

Brian

My father has some annuities coming due this spring. A couple of them(his + inherited from his wife) are held inside Roth IRAs. It is my understanding that you can hold property inside a self directed Roth IRA. It is current I have a few questions.

How is the best way to set this up?  Currently the Roths are being held by an insurance company(who set up the annuities).

Does the self directed Roth need to be in a corporation(an LLC)?

Can the funds be used as a down payment such that he can purchase larger properties through leverage or does the entire property have to be purchased outright?

Does the rent go into the Roth each month?  Is it treated like an owner contribution?  If the rents are high enough or there are enough properties to generate sufficient income do I run into any issues with the maximum annual contribution to a Roth?

Is there an issue with paying the lien down early with outside funds?

He needs some of the rent money to live on. Is it like an owner draw from an LLC or if not, how does that work? Does he take it before putting it into the Roth when he gets the rent check?

Can the funds from the two Roths be combined into the new self directed Roth or must they remain separate?  If separate, can the two be partial owner of the same properties effectively doing the same thing?

Who is the best type of person to talk to about other details?  Estate lawyer?  CPA? Other?

Has anyone heard of American Estate and Trust?  We have been in contact with them and they seem to do this type of thing, but we wanted to check up on them as trustworthy and reputable.

Does anyone have a list of questions that I should ask any perspective company to make this happen ?

Thank you.

Brian

Doesn't a fee also come with issues?  I thought I read something about if a pet damages something and you had a fee, that in some jurisdictions that was prepaid damages and it caused some other issues because of that if it ever went to the court.  Comments?

Brian

Would a pet deposit count?

Am I reading this correctly?

ORC 5321.16 - Any security deposit greater than $50 or one month's rent(basically all security deposits) whichever is greater shall bear interest on the excess at 5% per annum and paid annually by the Landlord to the tenant.

This only applies to amounts greater than one month's security deposit, so if I make my security deposit equal to one month's rent, there is no interest to be paid?

And if I ask for more, perhaps to secure a marginal credit check, that amount above one month's pay would be the only part that gains interest, not the excess.  Correct?

Thanks,

Brian

Also, I would put your criteria in writing so that you have a checklist.  That way if you ever pass off your criteria to a property manager, they can use your checklist.  Then when you deny an applicant, just circle the item on the list and make notes/add documentation as to why they failed #Whatever and keep it in your file for 3+ years.  Here is a sample one:

Sample Screening Criteria

Brian

@Luke H.,

If you have a policy, you need to stick with it or it can be labeled discriminatory.  Your disqualification criteria needs to be objective, not subjective.  If you want to say, "No evictions in the past 5 years", then use that criteria.  But if you have "No evictions ever" as your policy and you accept someone who has one, then you have subjectively decided that you know better in this case and that can get you into trouble with the Fair Housing Laws.

Personally, I wouldn't accept the eviction from 6 years ago.  Not even 10 years ago.  Why?  One, people don't usually change their habits.  Two, This might have been the only time they were caught.  What I mean by that, is they stop paying, they give excuses to a timid landlord who gives them extra time and extra time and then finally move out when the notice is placed on the door.  Guess what, no eviction happened.  This could rinse and repeat many times in the 6 years since their last one.

Brian