All Forum Posts by: Deanna O.

Hm. It doesn't matter how much $ you make, only how much $ you get to keep. Problem with selling is that unless you do a 1031 exchange you are looking at a BOATLOAD of capital gains tax on $200k. By the time you have sales commission (on the whole sales price) and capitol gains (on the profit), will you really be left with much $? $150k if you are lucky? Might you be better off refinancing, taking out the same $, but still own the house? 1031 are useful, but have a REALLY tight and absolutely non-negotiable schedule, so you probably want a couple of property options open to purchase in KY if you go down that road. 

This whole post doesn't make sense, as you seem to be dithering all over the place (these places you own are rentals, but you've listed on on the MLS, while quoting much lower "Zestimate" numbers while borrowing on it?). Offer a straight-across trade for the desired property if you think it's all that. You seem to be fishing for other people to let you play with their money.

I think the issue I have is with the title of this post. First year prep-to-rent costs really shouldn't be included in the cash-flow column; You are remedying defects the property had at purchase. I'd be inclined to put them in the "acquisition cost" column, as in "how much does it cost to acquire a rentable-to-my-standards property" (answer is purchase cost + repair cost). "Cash FLOW" usually means "how much cash goes into/out of my pocket every year from this property" (minus Capex/depreciation and so on and so forth).

At minimum background check and list as "additional occupant". You don't state the "issues", but with the economy tightening there are all kinds of people in trouble financially looking to move in with friends - not necessarily a bad thing, but all parties should go into the situation with their eyes open. If the guest has an eviction, the answer is "NO" (you'll likely be saving your tenant a world of grief). Make sure that the tenant knows that YOU can only kick out both of them if there is a problem. Depending on the state laws, your tenant may not be able to get rid of his guest at a later date without going through an eviction -- would be good if he knows that ahead of time and has the tools available (ie guest being a subtenant, not a "regular" tenant). 

First of all, look up what the laws are in your state/city (maybe ask your realtor, if you used one?). Odd that this didn't come up before purchasing but I totally understand sometimes things move too fast. Also,  I'd say figure out what you want to happen. If you are happy with the current lease, do nothing. If the rent is ridiculously cheap, but the lease ends in 3 months (and there is no rent control in the area), live with the cheap rent, give notice that there will be a non-renewal. Offer to create a new lease with a higher (but still "good deal") rent if you like the current tenants and they are taking care of the place. If you are wanting to move in that is typically one of the situations where in MANY areas you can negate the lease. 

First of all, look up the relevant laws. 2nd, follow them. 3rd - everything in writing--always.

Depends on the laws in your state. Might be a good question to ask your realtor if you had one. 

I think you have several reasonable solutions (checking account in local bank or post-dated checks). My bigger concern is whether she can actually afford the rent long-term, or if any "unexpected" event from here on out will put her further behind. If she wouldn't have income qualified on her own, I think you may need to have a long talk about her getting new roommates, and that the jailbirds are NOT allowed to return -- not even "just for a few days". 

You hire the mold company, not the tenant. You'll be paying for it, and you want all answers coming directly to you without being filtered or controlled by the tenant (too many mold remediators would be glad to recommend a long laundry list of items to be done by themselves and billed to you).

BTW, it IS possible that the house is prone to seasonal problems or that there is some recent cause for mold/mildew/damp, such as grey-water leaks. I just had something like that happen at one property-- the waste water drain line clogged, and with the rising level of water in the pipes caused water to pour out of poorly-glued joints and to form puddles under the house. The bad glue joints could have gone undetected for decades if the drain hadn't clogged (it was an issue that appears to have last shown up about 20 years ago, and was given a "band-aid" fix instead of the ABS being repaired glued or replaced). Painters and such wouldn't necessarily have been in the house long enough to be bothered by it. 

If the inspection shows nothing, consider allowing the tenants to break the lease and leave.  Other BP folk have called it the "happy clause", as in "You're not happy, I'm not happy, it's over".  They get window in which they are free to break the lease and leave without penalty, but if they choose to stay they abide by the remainder of the lease and the house is accepted "as-is". 

Isn't tomorrow the first business day (ie non-bank holiday)?

Ad is stating that property hasn't been inspected for Section 8. Possibly it would pass, but in most markets the property will be rented before a Section 8 applicant could get it inspected. It used to be 4-6 weeks in my area...maybe. Pre-covid. Personally I have zero interest in holding a property vacant while an agency piddles around and MAYBE inspects the property 2 months from now.