All Forum Posts by: David Terbeek

Leslie-  It sounds like you are on the right track but before you finalize anything, I would recommend that you speak with a qualified tax professional or CPA.  You may get one on BP to chime in or I could refer you to a couple guys.
On a related but separate note, don't forget that many cities in Ohio also have a tax which requires a LLC to file a return.

@Andrew Fidler  You are correct that you do not need to be involved in a trade organization like NARPM to be a successful PM but there is a definite value in the group.  I am a member and at the last Broker Owner Conference I learned a few things while networking at lunch that caused me to make some significant changes for the better in our operation.

If you are interested in state chapter, there are about 20 of us that have met a few times about trying to get this done.  Unfortunately, NARPM requires you to have 100 members to recognize an official chapter.  Message me if you would like to be added to this effort.  We have a long way to go so not sure how far we will go but every bit of support gets us a little closer.

I would recommend checking with the National Association of Residential Property Managers, NARPM.org for local PMs in your area.  It is a national trade group with 1000's of reputable managers.

I have heard some good things on Bigger Pockets and have worked wtih some clients that they have financed but, unfortunately, I can't speak to their timelines.

We manage a large portfolio and file numerous evictions each month on the 15th.  Once they are filed the tenant owes whatever we have spent on the attorney and court fees if they want to stay in the home and come current.  In a typical month we only move out 10-20% of those people on whom we have filed.  It never ceases to amaze me how resourceful people can to come up with past rent in addition to the $200 or $300 of additional costs - sometimes they just need that pressure to come around.  I have one tenant that we filed on a dozen times over 6 years before he finally moved - yes, the house was a mess but it was a mess when we took it over so our client deferred the turnover costs for 5.5 more years.

Since I have known tenants that have had a child, two aunts, 4 grandmothers and 2 mothers die in an 18 month period (there is no shame in fibbing to your landlord) exceptions for specific events are really difficult because you don't really ever know what is truthful.  Get them in court, hammer out a deal in court that gives you the right to move them out if they default and go from there.

@Matthew Paul  You bring up a good question about Builder's Risk Policy.  It seems each carrier is a bit different so an individual should contact their agent however, I was a presentation with a newer carrier in the Ohio market that said as long as the house is "liveable" you could insure with a standard vacant policy.  So, gutting a kitchen or bath would not necessarily make it un-liveable (unless there was only one bath that had been removed) while examples like removing sub floor to the joists or removing a wall for an addition would make it un-liveable.    The most common mistake I see is investors carrying a policy that is intended for an occupied unit while the property is vacant - claims can be denied in that situation.

Yes, I think you should require your handyman/contractor to carry liability insurance.  It is relatively cheap, shows the vendor is legitimate and if they do hurt someone or cause property damage, wouldn't you rather claim on their insurance than your own?

@Benny Gelbendorf   Parma has a mall (Parmatown) that has been redevolped into Shoppes of Parma recently after many years of decline and vacancy.  It has strong retail and some light manufacturing facilities as well.  It is close to many other manufacturing and employment opportunities in neighboring cities.

@Laurence K.  I am very sorry to hear this story, again.  I am all too familiar with the company and parties, having networked with them as peers in the industry.  I don't think anyone saw this coming.  I can tell you that Cleveland has a number of reputable management companies - don't be turned off to "professional" management by this one experience.

The Bigger Pockets community is rich with a diversity of ideas and opinions.  Always a pleasure to see our name pop up from time to time, thanks @Matt Motil

Agree with @Federico Gutierrez reputable title companies will have a form for you to fill out for the tax address.  The county is known to make mistakes so it is worth checking.  Since you need to have the transfer recorded to change water over, I typical check it a day or two after closing to see if it has been transferred.  That would be a good time to make sure the address is changed.