All Forum Posts by: Christopher Kolasa

Okay, thanks, I believe that I was near answering my own question once I was able to get the question down on paper. Appreciate your input. Thank you.

I acquired a duplex in December in Massachusetts and owner occupying, regarding setting up a sole proprietorship to gain a business bank and credit account, is it worthwhile to do so or wait to set up an LLC. Current plan looks like

1. Register with the IRS as a sole proprietorship in order to create a business bank account and credit card account today while I occupy one unit and rent the second.

2. In one year's time, I'd like to move out, rent both units and create an LLC for the legal structure to hold the property, transfer property to LLC.

Is it worth it to register with the IRS as a sole proprietorship in order to gain an EIN for the business bank and credit accounts, or simply create a personal bank account for all rental activity in the meantime and wait till I get an LLC down the line. It seems EIN's are not transferable and may just complicate the process if I set up the sole proprietorship now.

Much Thanks.

Hey all, crazy to read all these posts from 2017 and to see how far the world has turned since these posts. I am actively looking in Framingham and Metrowest now and post COVID, the prices have surely popped since the conclusion of this thread. Life circumstances and increase in family size, have now have me searching for a 4/2 property for myself (working in South Boston so off I-90) but the numbers are just so dang difficult unless I find that wrapped into a Multi which happens to be a rare ticket to cash, although I know they're out there. 

Prices as they are, high and likely getting higher, interest rates likely to tick up some, supply tight as ever, heavy competition on the good stuff, can someone lend some advice for how to find a property? Little to no meat on the bone left at the end of the month if I buy a $600k SF home for myself, with big $125k downpayment and $3000-$3500/month obligations. Feeling very overextended yet that's probably the minimum entry to get a 4/2 that's not a hot mess. Tough times for prospective home owners .. I believe everyone is feeling that uncertainty of tomorrow and fickleness of the financial markets as cracks are being seen by everyone, how does one navigate? I am trying to stay patient but it's really hard living in an extremely undersized 2/1! Anyone got a lead out there? Cheers

@Ryan Hebert @Steve Bracero @Alexandra Page @Steeve Breton

@Roman Rida

We used a lawdepot.com template. I’ve gotten a mixed bag of reviews how solid the agreement is (Florida) but it lays down the framework and numerous scenarios in case of death, disagreement, distributions etc. and spares us from paying $2,000-$3,000 to have a lawyer draft it. May be foolish to try and save the money but for our one single family we have, we aren’t making a ton and have an amicable relationship. Hope this helps.

Old 150 year old duplex in Connecticut, bought a LG washer/dryer combo unit for the 2nd floor bathroom, I know, sounds like a bad idea. Had water hookups but no exhaust so wanted to include this washer/dryer for the rental appeal when I remodeled the place. I’m getting about $1,300 for the unit and spell out in the lease I am not liable for the functionality of the unit however want to do right by my tenants.. I know the washer/dryer is desirable and likely swayed the young family to rent here last year. Unit fits barely into the space and has broken several times already (washer dryer mechanic had only poor things to say of LG and Samsung washers). This is the second time it’s leaked water and this time it rained all over the first floor in the newly remodeled bathroom, bedroom, and living spaces, going to have to file an insurance claim. Both units are 2bed-1 bath.

Water posing a danger in the second floor... what should I do?

1. Remove unit and decrease rent? How much would you value the decrease? I could offer basement washer/dryer (1st floor tenant wouldn’t mind till he leaves, hatchway entrance, may be an increased liability however.

2. Install a standalone washer, may require some widening of the closet. $600. (Installing stackable washer dryer would require installing an exhaust).

Thanks for your help.

@Tom Price, hey, I got a friend going through the same thing. Duplex with $25K increase, builder has a greater cost basis on one so that’s why it’s more expensive. No difference in the property except a $40 project price increase.

Price: $360k

Rent: $2590

Sq ft: ~2,000 (2 bed 2 bath)

Also, the average price per sq ft of recently sold properties is $140 and Property is $184 per sq ft. Right around a 0.72 RV ratio.

Take the earnest money back or wait 6 months and bite the bullet and go through with it? What did you decide?

These were all addressed in the agreement, I am just wondering why the attorney mentioned the agreement was weak. Thanks for the reminder.

@Steve K. Love the post. Would also add to your list of "Cons" horrible city/state planning with highways constructed along river (destroying valuable riverfront) and aging viaduct through heart of Hartford (separating 10,000 Aetna employees from downtown) which I believe has been one of the biggest detractors from the state. Hartford has definitely a rich history, some gorgeous infrastructure in parts showcasing its former glory but deferred maintenance is probably rampat. Hartford was making a comeback with great programs at the Bushnell, really trying to attract young people, but COVID really hurt the city, numerous hotels closed, gonna hurt the city more than others. Connecticut is scaring away big time employers each year (recently GE), truly a 9 to 5 not a 5 to 9 city although you may find good rent to value because of this, but i'd be aiming for 1.5% - 2% rule where normally people are looking for the 1%. UCONN moving into South End with new infrastructure, stay close to that, that would provide the only glimmer of hope in my eyes where to find an investment opportunity in the city, but with anything, you can make it work if you buy it right and manage it right! Good Luck!

Thank you @Greg O'Brien - I am adamantly looking for any attorney around Orange Florida to assist with this in that case. Maybe I'll inquire with some CPA's as well. Appreciate the insights. You think it's possible to do for a couple hundred bucks if it's an hourly kind of job?

@Ryan Allison @felipe Pereira good points. The slip and fall liability is worrisome but sounds like a liability with any property. I think I'll try it out with the tenant on a temporary basis, gonna go with a test run and not guarantee anything! Seems like risk with anything but may be a cost effective/practical arrangement.

Thanks for the point of views.