All Forum Posts by: David Cruice

@Alex Fabiano, in most states you must be at least 18 years old to enter into a legally binding contract without parental consent. But the closer you are to 18, the harder it may be to get financing. The primary determinant as to whether you can buy real estate is going to be your credit score. However, you could start by helping an investor "bird dog" deals for a finder's fee. Good luck!

@Lisa T. , that's like asking, "How long is a piece of string"?.  The factors are relative; not absolute.  It's whatever you, as an investor, are comfortable with.  As you newbie, you'd be best to err on the side of caution and go with the more conservative numbers, i.e. lower percentages to give yourself some leeway should something go wrong.  Watch @Brandon Turner podcast on his BRRRR method. That will give you some very good insights. Also read this article: https://www.biggerpockets.com/renewsblog/brrrr-buyrehabrentrefinancerepeatprimer/ Best of luck to you.

You don't have any recourse to go after anyone.  I'd chalk it off to bad luck and move in.  It happens to us all at some time.

Reach out to your local REIC and ask for a referral there.  P.S.  Yes, the fees outlined above seem somewhat exorbitant!

@Brian Reinholz you're overthinking it, mate.  From what you've written I'd guess you're a business school grad (as am I).  At this point, you should be asking yourself the "How" question, not the "Why".  The Why can come later.  

@Brian Beadle at the end of the day, as landlords aren't we already managing people?  I wish my tenants gave me as little trouble as my properties!  :-)  You're right that "your Tudor style four-unit on the quiet cul-de-sac isn't going to drink on the job, steal toilet paper and embezzle quarters from the washing machines . . .", but my tenants certainly are!  All the best.

The LLC doesn't own the properties. You're just using it to pass through the income and expense from your properties. Paying your father can simply be a payment from the LLC. However, I'm not a tax accountant so you would be best consulting with one first. Go to YouTube and search BP podcast LLCs. @Brandon Turner has a good video talking about the subject.  

Use the same LLC for both properties. Open another bank (operating) account for the Philly property at the same bank you're with now. Unless you absolutely need to, don't take out the rents from either property until you have some working capital to cover unforeseen expenses such as a plumbing or AC emergency. If you want to, take a distribution at the end of the year for yourself and your father, but, again, make sure you leave some working capital in the account.

You'd be best asking the guy from where you're going to be buying your paint.  They'll be able to tell you.  However, from what you've typed above you're definitely overdoing it on the primer.  Typically one coat of good primer and one coat of paint will be fine for most regular lighter surfaces.  Darker surfaces might need a second coat of paint.  Good luck!

@Chris Hughes I'm sorry to have to tell you this, mate, but the AC company was bull-sh...ing you!  Not changing out a filter does not cause a compressor to fail!  Worst case scenario when you have a dirty filter is that the evaporator coil on the air handler inside the house will freeze over and the unit will stop blowing cold air.  If the AC unit was, as you say, "about ten years old", it should have had about another 5 to 8 years of good service left on it.  

From what you have stated above you can't claim the cat food/rodents issue or the AC against the tenants' security deposit.  You can only claim for what is above and beyond "normal ware and tear".  If they have ruined the quartz countertops and you need to have them repaired or replace, then that is one item you can use.  If the paint job in all the rooms is truly "ruined' (above normal stains and ware and tear) then you can claim that.  However, do not tell them that before they leave.  Give them the opportunity to paint the rooms in the original color before they move out.  In Florida "if the landlord does not intend to impose a claim on the security deposit, the landlord shall have 15 days to return the security deposit together with interest if otherwise required, or the landlord shall have 30 days to give the tenant written notice by certified mail to the tenant’s last known mailing address of his or her intention to impose a claim on the deposit and the reason for imposing the claim."  http://www.leg.state.fl.us/statutes/index.cfm?App_...