All Forum Posts by: Christopher Freeman

Hi @Ronnie Vajdak, welcome to BP! I live and invest in Keene, NH. It's a decent market for buying investment properties, especially if you're interested in doing student or "by the room" rentals. I don't think that you will find much in the 40-100k range on the MLS, but certain areas have more than their fair share of distressed properties that could be candidates for fix and flip or BRRR. Just be advised that holding costs here are costly due to our very high taxes. My crappiest property costs me almost $500/month in taxes, and it's not unheard of for a multi around here to have taxes around 10-12k per year.

I'm currently entertaining the idea of moving into the Manchester market. The quality of the tenant pool is more mixed, but cap rates are much higher due to higher rents and lower fixed costs.

@Stef Klynn 

Their website is https://noyesins.com

It's Plymouth, NH :)

I'm in Keene and used Scott Towle as the insurance broker for my SFR and one of my duplexes. The rates were significantly more competitive than Geico, and I have not had any issues so far.

Was this a lease option sale?

Originally posted by @Pat L.:

Yep we foreclosed on a woman after 7 years of paying on time but then she fell on hard times & then she became nasty. (She had married a felon she met on-line while he was incarcerated & that didn't work).

We gained possession right before Xmas. We tried to negotiate through attorney's a cash for keys but she had liens/judgments to the moon so foreclosure was the only way out. She did leave the place spotless plus a new HW tank still in its box in the garage. We did meet the local district attorney the day of possession as they were looking for her & her felonious ex-husband. 

I sold it for double the amount she originally paid, but her attitude left me cold & with absolutely no empathy for her.

Is it technically discrimination if you decide not to follow up on a rental lead whose manically cheerful voicemail recording ends with "HAVE A VERY BLESSED DAY"?

I'm worried that such a person might put "Live, Laugh, Love" decals on the wall.

Hi All,

I have a rental applicant whom I would like to place in one of my shared housing rentals.

We strictly require all applicants to undergo a credit and background check. We feel that performing this step is particularly crucial from a liability perspective since we are placing unrelated individuals into a shared living space.

The applicant by all other metrics is a great catch. Very polite, proactive in the application process, had good references from previous landlord, has good/stable employment, and when I looked them up on Facebook their information matched everything on their application.

Unfortunately, they are not able to complete the screening due to a complete lack of credit history (young applicant with no credit cards or, evidently, student loans). We're able to compensate for that by requiring a co-signer (no double deposits allowed in NH), but the inability to validate identity on the screening platform through questions based on credit bureau records prevented him from being able to complete the eviction and criminal history screening. We're using ApplyConnect which is a CIC product.

Does anyone know of any services where we can do a background check without needing credit bureau ID validation?

What are some other things we can do in this scenario?

Thanks,

Chris

@Lance Lvovsky, what I'm trying to learn is whether or not there is a way to structure sales agreements that would help the seller/seller's estate eliminate or mitigate capital gains tax exposure. I know that lease options can be deemed sales in reality under certain conditions, so I'm trying to explore other options.

@Lance Lvovsky, so if the seller dies before the transaction is complete, do their children still have to pay the capital gains as though the seller had not died, or does their residual interest get a stepped up basis?

@Lance Lvovsky, what happens to the capital gains associated with the sale? Am I correct in my understanding that in an installment sale the capital gains is not all due at once?

I'm wondering what the tax implications are for the heirs of a seller who dies while carrying the note on a seller financed deal.

For example, suppose a seller has a fully depreciated asset with a $50k cost basis from the value of the land. They sell for $250k. In a cash or bank financed deal, they show a capital gain of $200k.

My understanding is that if the seller were to carry the note, they would be able to spread the capital gains tax.

My question is: What happens if the seller dies before the note has been fully repaid and the note passes to the seller's heirs? Do the heirs receive a stepped up basis in the asset with which the note is collateralized, or will they continue to pay the gain on behalf of the decedent?