All Forum Posts by: Dave DeMarinis

I’m looking for an AirBNB host local to Incline Village, Nevada - anyone in BP Land?

@Cliff C. have you checked with Iberia Bank? Is it Residential or commercial? I can you refer you if you’d like. 

In hot markets, 100’s (1000’s) of would be investors are calling potential “team members” and probably 1% of those will actually execute on building a significant portfolio in the market. 

Here is the problem for the real estate agents. Of the 1% who actually execute on a portfolio, maybe .1% of the 1% do it with MLS properties.

Transalation: Unfortunately, most of the calls are high on ambition and low on execution. The ones who do execute will not do it through MLS deals with an agent ... Basically, the results are nearly the same for the agent.

Hi Jose - I'm looking for an Ohio lease for storage and/or garage. Did you have any luck finding anything? Sorry for the crickets?

We use one business card for simplicity and download the transactions and then reconcile them by Category (Office Supplies, Repairs & Maintenance, Property Mgmt, etc.), by Responsible Entity (which LLC, corp or whatever) and property if necessary. We send that to the book keeper so expenses are in the correct P&L. I used to have each entity pay their portion of the credit card bill which is probably better as it forces timely reconciliation. I currently pay the bill from the entity that has the card and the other entities reimburse that entity per their portion of expenses.

I don’t think it really matters but just be consistent. If you are consistent, it is pretty clean and easy. If you sometimes pay the bill directly by entity and sometimes pay the bill with parent entity and reimburse - it gets messy.

I'm not an accountant and you should consult yours, etc. Selling sounds like the better solution. That said, I think you are talking about Section 121 exclusion which broadly says you can exclude up to $250K ($500K for married couples) of gain on the sale of your primary residence (lived in for at least 2 of the last 5 years). Many people take advantage of it this way which sounds like it would work for you. Note, you will likely have a tax liability on the depreciation recapture. Also, for Section 121, as far as I know it is not impacted by your choice to invest in another property or not.

@Brett Begley Also, do your research on Additional Insured (I would never do that) vs. Additional Interest. All disclosures - I'm not an attorney nor insurance professional and you should consult yours, etc. My practice is to never be additional insured with a tenant but to be named as an Additional Interest. The link below does a good job explaining the difference.

On another note, Clinton Orr at Nationwide in Huntsville is a great local insurance resource. PM if you would like contact information - you can tell him I referred you.

https://www.effectivecoverage.com/800/additional-i...

@Christopher Pound I don't think you are being overly cautious. In fact, I would make this an urgent and top priority. In a property management transition the only higher priority would be required tenant notifications. It is a MAJOR red flag if they are not making disbursements to landlords in a timely manner. I don't have any experience with Morris but if you search them on here as @Brian M. said, I think it will tell you what to be concerned about.

I would make your two highest priorities the following. Get the owner/highest possible manager in Suite on the phone immediately and get a current owner's report. If he stumbles, find out what property management software they use. I guarantee an owners report is push button. They need to show proof of sending you February and March rents today. Find an inspection or drive by service to go by the properties and verify condition and occupancy. This could be a local realtor (may do it for free as you might use them to sell these or buy more). Next would be various services - even task rabbit. You need to get eyes on the properties.

I'm assuming you have only seen photos and no personal verification of rehab and property. I really think you should make this a MAJOR priority.

@Joshua Bush there should not be any depreciation capture because it was his primary residence so he is taking advantage of the section 121 exemption for primary residence. @Gary Crawford congrats on great discipline and tenacity and using and bending so many tools to your advantage.

Certainly consult your tax advisor to make sure you do everything required to maximize the tax advantages and timing of what is effectively an installment sale. I’m a Buckeye as well so I see the Columbus attraction. Enjoy the journey!

I don't think you will find 1% in a neighborhood/zip code that is considered to be also strong appreciation in Huntsville (or any other market for that matter). To clarify, there is no neighborhood or area that has those characteristics. It is possible to "make and create" those types of deals in neighborhoods with strong appreciation outlook (i.e. good schools). To make and create, you need to add value - most likely in both the acquisition and the rehab and positioning. 

I think the definition of B class is also in the eye of the beholder. If you look at the median income of the area relative to the state or larger area, the school ratings and the home values relative to the averages, those three things should be in the 60 to 80 percentile to be B. 

A : 80 to 100

B: 60 to 80

C: 40 to 60

D: 20 to 40

F: <20

I think the most critical thing is to clearly document your definition of the classes based on your criteria and what percentile in that criteria. All grades have viable investment strategies. You just need to make sure it is really clear where you are in the bell curve on the metrics you use to define the class.