All Forum Posts by: David Kane

Hi Lindsay, Have you also checked the tax records to see if the property taxes are current?  If the taxes are current and the owner of record is the 2005 purchaser, there is a good chance that she is still the owner of the property.  You can also check who holds the mortgage (if any).  I'm pretty good at tracking these things down, so if you need any additional help please feel free to contact me.

Good question, the law actually states:

Code Sections 44-7-31, 44-7-32, 44-7-33, and 44-7-35 shall not apply to rental units which are owned by a natural person if such natural person, his or her spouse, and his or her minor children collectively own ten or fewer rental units

So, it doesn't really define what they mean by "rental units".  My understanding over the years has been that is referring to "doors".  This makes sense because the code is written to protect consumers.  Also, should probably state that the sections are specifically covering how to handle the tenant's security deposit and the proper steps required to withhold any funds from the return of the security deposit.

That being said, if anyone can find cases that support a different definition I'd like to know!

Hi Derek,

As you live in Georgia, only a licensed broker can practice property management in our state.  Of course, there are also many other variables to understand when your managing a property.  There are trust account requirements when you're managing a property for others.  There are the proper insurance requirements, both vacancy or landlord policies to protect your client from any major losses.  There are proper maintenance procedures (the most litigated area of management) that you need to consider once you have a tenant in the property.  You must follow the proper move-in/move-out procedures to ensure any adjustment you make when you return a tenant's security deposit can hold up in court.  Of course, there's also compliance issues... the IRS will require you to report an annual 1099 reflecting the gross income your client earned for the year.

Many of these requirements (and there are quite a few more) are waived if you're managing your own properties AND have less then 10 properties, so you have to weigh the risk/liability versus the reward.

Being in property management, I'm a bit biased, but I feel that investors should use a professional, licensed property manager to manage rental property for the same reason we choose to use a CPA to prepare our taxes or a lawyer to represent us on legal issues.  Yes, we can do it ourselves, but it's always safer to trust those better trained to ensure it's done right.

There are many rules to maintain the independence of the SDIRA that you need to consider. There are companies that specialize in this and can provide guides to get your started, I currently work with Advanta IRA Administration. You can invest in a flip property or a rental property, but none of the transactions, oversight or benefit can come from or be for you or immediate family. This is a great way to build a portfolio of passive income producing properties, but does require guidance from the experts.

HI Audrey, the funds you've mentioned should go far in Georgia.  While there are some amazing buys in Georgia, the growth and future appreciation will probably be more reliable in the Atlanta Market.  As usual, you've already received some very sound advice... school systems are one of the better indicators of both appreciation, as well as attracting favorable tenants.  There are loads of education rankings available on the internet and you may want to review some of those to validate anything you hear from a potential consultant.  Personally, I like all the Forsyth county schools and the county is one of the fastest growing.   I also like those in the North Fulton county area, cities like Roswell and Alpharetta.  But you may also want to check out the Buford city school area.  All of these areas are growing at a very fast pace right now.  Good luck in Georgia, of course I'm a bit biased... but I think you're making a wise choice.

There's also the Peachtree City E.P.I.C. group, a sub-group of Atlanta REIA

https://www.facebook.com/Peachtree-City-EPIC-Group-200269453643411/?fref=nf