All Forum Posts by: Jeff Bridges

No double cylinder. that is a fire hazard. Use a "store room" lock. Keyed on outside and always unlocked on inside. door handle will always require a key to open the door and cannot be left unlocked (at least my understanding). duplicate and issue to all tenants. Buy two locks with matching keys or get them keyed to match by a locksmith or a hardware store so you only have to issue one key to access both of your doors.

https://www.americanlocksets.com/schlage-f80-ela-e...

A couple of notes:  my flat roof has a slight slope to allow the roof to drain to a particular side of the house. This helps you avoid having to put gutters on all sides of the house which is cost prohibitive. If you dont have a slope or arent sure, maybe you talk to a roofer and/ or gutter specialist and start getting quotes for your options. they would have to look and let you know what you can do. I recommend cutting back your trees to prevent overhang if possible. those guys are more of a liability for dirtying your gutters and breaking off and destroying a gutter or your building in a storm. try to be proactive or it might cost you down the line more than tree trimming cost. Easiest step is to add gutter downspout extensions on all downspouts to draw water away from foundation. you need to check the grade on each part of the house to make sure that water will drain away and downhill if possible from your foundation. some add soil to the side of house to grade water away from house as well. thats all I got. I'm sure others have other input.

I'm selling a rental property at a profit and intend to buy another rental property to improve cashflow and get into a more desirable and easier to manage rental. I've been running the numbers and trying to figure out my options. 1031 seems like a good choice, but finding replacement property would be very difficult. Looking to hear options from the BP crowd to see if I can look at things a different way.

existing property: est sale price 155-175k. about 87k pre-tax profit after closing. at 15% cap gain tax= 13k in taxes and another 6.5k in MD state witholding tax from the sale for a total 19.5k in taxes due. I'd have about 150k in pre-tax proceeds (same if used for 1031 transfer) from closing or 130k post tax if I sell regular method. Take a look at below options and let me know which might be best. 1031 would keep 19.5k in additional deferred taxes to be used for new possible property, but easier said than done.

option a: 1031 into another SFH property for 175-180 range with a mortgage and get mortgage for remaining amount. 20k mortgage seems like a waste.

option b: eat the 20k tax and use a straight sale of property. Buy another property I have an eye on in my target neighborhood for 90k with 20k rehab. it cashflows well and I would use the sale proceeds to cover the property, then refinance after rehab and pull out money again for BRRR. property would build about 35-40k in more equity following rehab in addition to the good cashflow.

option c: 1031 into multifamily or larger property find a 600k property, put 150k into property as 25% down, mortgage the rest. The problem I'm finding is there are not many multis in the MD/NE area and its hard for me to vet these properties. Those that exist are super pricey and the cap rate is super low for even blue collar areas.

So right now given the lack of realistic multis to parlay into, I'm considering just eating the tax. Unless there are other suggestions or new perspectives. Its really tough to envision a good 1031 replacement. Also I am not considering any baltimore city properties at this time even though they have plenty of multis. Thanks in advance!

no. save your money. been there done that. None of them are responsive and take a minimum of a week to get a contractor out to your property if at all, causing headaches and requiring constant follow up to check status. Worst contractors are used and they will do the bare minimum. save your money. do a solid rehab up front to harden rental and find a good handyman for in between.

Thats a bold ask... "I want to add another occupant to the lease and oh you have to also take their emotional support chihuahua." I agree with others. Tell them all adults have to apply before they are approved to move into the property, take their application, and find a reason to deny from your criteria. This year I had a tenant move in, acquire a cat shortly after move-in, then get a service animal letter from their therapist after I sent them a violation notice to remove the cat. PM consulted the attorney who said there was nothing to be done. FML.

This would be an all cash offer or financed offer? The CCR is based on all cash investment? I think the best practice is 10% CCR based on a CASH offer. If you are getting this CCR while financed, that seems less appealing to me and below my minimum criteria. 400 HOA fee is usually my max preferred fee for investments. Keep in mind it is currently $400 but can be increased at anytime, meaning it could threaten your cashflow in 6 months or 10 years from now. try the calculation at 450/month to stress test your calculations and see how they work. You have no recourse to increasing fees. It's still an expense subtracted from your cashflow and not treated any different. Did you budget for property manager and vacancy in your cashflow estimates? Otherwise you aren't valuing the cost of your time to manage the property.

personally owned in my name....

use this guide:

https://www.biggerpockets.com/renewsblog/2013/01/2...

You need to talk to your insurance agent about finding the right liability policy and umbrella policy. Liability is about protecting your assets against a possible lawsuit. I have 500k policies for my units (required in order to have my umbrella policy), but I also have an umbrella policy equal to the value of my personal assets/ net worth so I'm protected in case 500k isnt enough. however slim of getting sued for over 500k, if they do and win, it will protect them from taking away your other assets like your house and bank account balances etc. get an umbrella policy in consultation with your agent.

I got a comprehensive skip trace report from these guys for $10. last known address and name is all I had available. I used this to provide the possible new addresses to my process server. They checked all the addresses out in person and served the summons. The other way you can do it is hire the process server and have them perform the skip trace for you for an additional flat fee. some of them are no serve no pay, or flat fee. get quotes from a few in your town and you can knock it all out in one swoop. They are worth their fee since they can make multiple stops at the address and make sure they find someone home and provide you with proof of service.

https://findtheseller.com/