All Forum Posts by: Jeff Bridges

Thanks for the feedback. Good point about the joists. I will check. Issues with the current layout is that the door opens to the limited space where the sink needs to go, so it cant open fully AND it would limit space that I could otherwise place a larger sink vanity and maximize the bathroom space. Right now I'm probably limited to 24" vanity if I leave it in current place vs. definitely 30" opposite side (maybe even 36" depending on how much space that leaves with toilet on either side). I'm aware of the issues with putting plumbing near an outside wall but thought that running them from the floor as opposed to the wall might alleviate that concern. I'm already tearing out the plaster for the outside wall so we will re-insulate on top of it being a brick exterior. Thanks!

Hey BP, I need help figuring out how to deal with a weird bathroom layout! Please provide feedback if at all possible. Older house with not ideal bathroom layout. Was thinking if there were better ways to re-position items and re plumb to allow for a cleaner layout. Let me know if I could leave it as-is or should try to change it.

Current layout (exterior wall with window is on top):

Here is my new proposed layout. I would need to plumb from the floor for both because that is an exterior wall on the top  Window would be behind the toilet (I'd put blinds/frosted glass filter):

let me know if you agree or have other suggestions!

The thing you have to understand with 1031 is that capital gains are deferred and basis etc. is transferred to the subsequent property. You can keep 1031ing into new properties and deferring taxes, but when he sells it via regular sale to you, then he must pay the outstanding taxes due on those prior gains. So the IRS WILL get the capital gains tax due (unless he holds it until he dies or he continues to 1031 each property and replace it with yet another property). So your proposal doesn't help your dad avoid paying taxes upon sale to you. Yes he is allowed to sell his properties for whatever value he wants to you. 2nd issue is buying 2 houses in a short period using 1031 is very hard. I tried it. I recommend you identify and have those 2 houses under contract BEFORE you sell the original house since you have to identify them in 45 days. Your best bet for tax favorability is to have your father work with an attorney to put together a living trust or irrevokable trust which gives you the property at a stepped up basis when he passes and would result in your paying less in taxes when you dispose of inherited real estate.

see below:

https://www.erg1031.com/combin...

For screening, you can follow the ultimate BP screening guide. don't skip steps:

https://www.biggerpockets.com/...

My process for accepting applications is as follows: the first person to submit a fully completed application, meets my criteria AND turns in the holding deposit (which becomes the security deposit after lease signing along with receiving first months rent), I will take the property off market and stop marketing the property. Until then, I continue accepting and processing applications. You could have an applicant who you accept, but has instead found another property by the time you accept. tenants are shopping around, so you dont stop until they back up their interest with a security deposit or sign the lease (and provide deposit plus first month rent).

You cant discriminate against family members. You can only evaluate the adults againsts your screening criteria. Look at their ability to pay, proof of income, check their landlord references by calling them, then look at their credit report to confirm their ability to pay their rent against their current liabilities. Does their income leave enough to pay the rent after all of their bills on credit report? Then accept the best one, but dont reject the other applications until the top one submits their holding deposit within 24 hours. If they dont, you have other applicants you can accept without having to start the entire process over again. This is why you want many applications and be able to pick the best option. Good luck!

Here is an amazon basics photosensor light bulb 2 pack that is easy to put on the front and back door entry lights for perimeter lighting. Highly recommended for quickly and easily creating effective outdoor security lighting:

https://www.amazon.com/AmazonB...

Home depot also has these in single packs for around the $4-6 per bulb.

good idea with the simplisafe. I setup mine in the kitchen with the motion sensors only so that if they try to go near the WH they wont have time to take it before alarm goes off. I only activate it for the time my unit is vacant as service is month to month $25/mo. Can be easily moved from unit to unit as needed (but be sure to change the registered address when you do). Uses cellular, no wifi required.

Other things I do is add dusk/dawn exterior LED light fixtures on the entry doors so that the house is well lit at night and deters folks from trying to break in. You can also buy dawn/Dusk LED light bulbs and pop those in existing fixtures and leave them on until occupied. doesnt cost more than pennies a day in electricity. leave on flood lights if they are present at the property.

Also can leave on talk radio, a room or two lighting inside the house. and make sure all blinds are drawn. they even sell timers that randomize lights turning on and off. Can buy timer switch with randomizer or a plug in timer for a plug in light. I think exterior lights are a pretty good deterrent vs a completely dark house and are pretty sufficient though. depends on neighborhood.

I'll note that adding the third tenant means the house is now subject to additional wear and tear from 3 dogs!!! 2 seems plenty enough in my eyes. You could easily deny this additional tenant because it exceeds the amount of reasonable animals that reside in the house and will cause you more maintenance move-out repair headaches. Military tenants housing allowance pays for their rent cost so they are not in financial hardship paying your rent so they don't have to take in this guest. You're gonna pay in the form of new carpets, poop in yards/landscaping repairs and additional damages from pets that the existing security deposit might not cover in entirety. 50% increase in deposit seems necessary as well as a pet rent for the extra pet ($35-40/month) and increased overall rent terms. Your washer/dryer, household appliances, WH, fixtures will all see higher use, so you'll need to be compensated for these items which you will have to replace sooner. There is no reason you need to be doing them a favor, modifying your existing lease (which you have no obligation to do) without you being compensated adequately for your eventual higher wear and tear that you will be on the hook for.

Some psychological factors of seller financing vs. refinance: a) seller is exhausted with being landlord and simply does not want to manage tenants/maintenance/hassle of taking out a new loan and therefore still being landlord at the end of the process. B) Selling the property with seller financing both relieves the seller of responsibility of the property and provides a tax friendly approach to getting the income back in installments as opposed to in a lump sum C) Seller receptive to seller finance might be older and likely already paid off a 30 year loan and not prepared to take out another loan which would adversely affect his estate to his beneficiaries. He's already got the property free and clear and might be opposed to having to make payments again. D) the interest rate on seller finance (4-10%) might beat whatever he can earn using a lump sum in the stock market in other passive investments so why not use his existing equity to earn more than the general market using a passive strategy of being the bank.

You need to provide proof of your cash offer within 24 hours. I believe that means they expect you to show a bank account with enough funds in it and/or authorization letter for you to receive those funds. There will be no funny business about some promise from someone else to get you the money or they will cancel the deal if you are the winning bid. I recommend calling customer service so you know exactly what POF they will require if you are winning bid.

Auction.com is not for the faint of heart. They have foreclosure "auctions' which are wild west and dont guarantee there are no other liens or other issues with the title. Then they have real estate owned foreclosure sale listings which state if they will provide title insurance. I only bid on those because I can look at the title history in the docs section and know that they are required to give me a clear title as a condition of the auction sale. With regular auction, they dont have to provide the guarante and nothing short of title insurance will guarantee that you have some encumberance that you havent been aware of. They have a reserve price that is usually at or near the foreclosure price when they reposessed. You can research that in the deed history if CT has online records that you can access to find that price out (or zillow.com might show that foreclosure price (pre-listing) as well). They will then give a teaser initial listing price and then their computer automatically bids it up incrementally to the reserve price (to make you think there are other bidders competing with you). Once it reaches the reserve price, then the computer stops bidding and its only live human bidders that you will be competing against. Decide your MAO beforehand and dont get caught up with the irrational exuberance. Know that these properties usually end up being auctioned 3-4 times before someone actually settles on in because the property gets bid up too high and the seller backs out realizing their mistake. Don't use their recommended title company and instead use your own selected title company to make sure they don't screw up the title paperwork and research. It will cost you a little more but their firms dont want to disrupt closings and might cut corners in order to get a deal done quickly. This is not CT specific, just auction.com specific. FYI