All Forum Posts by: Davis Stoner

Personally I would do STR in upstate NY. Long term rentals I would do PA. Like @Anastasia G. said, the laws and taxes brought me to PA for long term rentals. Specifically, the lower property taxes and tenant landlord laws (compared to NJ and NY). Also, the Poconos STR market seems to be very oversaturated at the moment, with the possibility of STR's being banned in certain towns/neighborhoods. 

For an Upstate STR I would try and find something either close to a train line (for NYC people who don't have cars). Or I would go up to a Lake George or out to the catskills where I think they embrace STR's because of the money it brings in to the local business. I have not looked into owning in LI, but I can imagine it is pretty pricey with high taxes, but a summer rental in the Hamptons would probably go for a high price weekly as long as the town allows it.

I know there are many benefits to owner financing deals for the buyer. Such as almost everything being negotiable, but what are the benefits are for the owner to agree to owner finance? 

A few months ago I closed on a vacant property where we worked out owner financing, but we didn't do an interest rate or anything. I told her I would buy it for 58k cash or 70k owner financed with 10k downpayment. This owner was very easy to work with, and I would like to continue to use this strategy, but I am wondering what the benefit for the owner is? I know they can realize the gain over many years and I think I heard that the interest payments are not taxable? Thanks for reading and looking forward to responses!

Thank you Matthew, that will be my last resort, but I wanted to see if anyone had any other options. Appreciate the feedback. 

Hello, I am looking for a construction loan and have read different opinions on these. Before reaching out to a bunch of lenders I wanted to see if anyone has any experience with them in the NEPA market and if they had any recommendations on where to get one?

I have experience rehabbing 2 apartments, which are almost completed. Once those are done I am going to refinance and pay back what I borrowed. 

This property was owner financed with a low downpayment. We closed last week on it so I am the owner of it now, and last time when I tried to use hard money it did not work because I already was the owner. 

Thanks for reading! 

@Ashish Acharya Thank you for the response, that helps clear some things up. for tracking bookkeeping do you recommend saving all receipts in a file? Anything else I can do besides write It down for an accountant and save receipts.

Also, I have an excel sheet of all my expenses that I spent fixing up one of the units. For the big stuff like subbing out the painter, flooring and furnace I have a receipt. But for a lot of Home Depot trips and small things like that I didn't save them. Can I still deduct those or is that not recommended incase I get audited. 

Hello all,

For the new year I wanted to organize my finances and maximize profits. I am currently reading Tax Free Wealth by Tom Wheelwright. 

Here is the situation: I own 2 properties in my personal name, but collect rent and pay mortgages/expenses through a LLC business account.

At most of my dinner's I talk about real estate and this deal specifically, I buy contractors lunch, and fill up my tank with gas driving there. A few month's ago the furnace had to be replaced, that would have brought my balance down lower than the mortgage amount (so I paid it on my personal card but kept receipt). Should all of this be going on my LLC's credit card? I am worried that I will run out of money in my business account and won't be able to pay for things out of the LLC checking account. What if my balance run's so low I don't have enough for the mortgage, do I just transfer from my personal account? The goal Is to eventually have enough money to keep them separate, but starting out is a weird in between time.

A majority of my income comes from my W2 job, but I am trying to lower my taxes as much as possible. Real estate seems to be the right tool for this! Thank you for taking the time to read, I know that all the responses will have to be run by my accountant and can't be taken as official legal advice. 

Hello,

I am looking at purchasing 5 houses (currently long term renters) and turning them into STR's.

They are all deeded separately and 2 of the houses are on the same deed.

Is a portfolio/blanket loan required? Or would a commercial loan work even though it is a group of individual homes. Any advice is greatly appreciated. 

If anyone has any recommendations for lenders I am in the Adirondack region by Lake George! 

Thank you for reading.

@Scott M.@Nathan Gesner Thank you both! Definitely makes sense. Good call with the welcome letter describing the changes in management. 

Hi All,

I am wondering if anyone can help with connecting me to a solid financer for a few cabins in the Adirondack/Lake George. There are a few cabins that I have a high interest in purchasing, it is a package deal with multiple properties. I would be able to put 20-25% down for the portfolio. 

I do not have many contacts in that area yet, and am trying to grow my network in that area. If you have any recommendations of people worth connecting to please do not hesitate to reach out!

Hi all, 

I currently am using a property manager that I believe is doing a sub par job. At this point I own 3 finished units that are fairly new (hopefully low maintenance) so I am thinking about self managing. Two of the units were managed by the PM from the start and they listed themselves as the landlord on the lease. 

Once I "fire" the PM and I become the landlord, does that matter if the lease says that? I feel like it would be a little drastic to have to resign the lease, or maybe it is not a big deal at all and nothing has to be done. Please let me know your thoughts!