Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Davison Horst

Davison Horst has started 2 posts and replied 12 times.

Originally posted by @Jeff B.:
Originally posted by @Davison Horst:

I was not considering reporting to either the IRS or state taxing authorities. Rental payments will be on a cash basis only. If this is the case, where would the sales tax become a factor?

 IMO, SHAME ON YOU.  

I just denied an application when I really think the tenant would have been great - - WHY?  He could no document any income; it was all under the table or "in his daughter's account".  What goes around comes around.

 Shame on me? For what? Accepting cash payments for the rent? In the first place, the yearly income received from rent does not push me into an income tax bracket. I would pay no income tax anyway as the rest of my income is from Social Security. The state of Florida has no state income tax. I do not intend to use the rental income as part of my overall income for qualification purposes as I don't buy any big ticket items at 75. 

Some Questions:

Is it advisable to draw up a lease where the tenant requires a co-signer and if the co-signer meets all of your qualifications?

If I advertise the property as "no pets" am I forced to consider a person that has a service dog? 

If a prospective tenant requires a wheelchair am I supposed to make changes to my rental property in order to accommodate if he rents the property? Do I have an option of not qualifying this person if my rental property will not accommodate the wheelchair and will cost a great deal in renovations to accommodate? 

I was not considering reporting to either the IRS or state taxing authorities. Rental payments will be on a cash basis only. If this is the case, where would the sales tax become a factor?

Originally posted by @Michael Barbari:

@Davison Horst I would caution short term leasing. Especially when it comes to lending. My bank would not add your month to month leases into your cashflow analysis. I personally do annual.

 Interesting. That is definitely something to consider.

Originally posted by @Jeff B.:

There's pro/con both ways.  Personally, I use a 3 month lease, renewable at mon/mon, terminated by written notice of 30 days.  Here's why:

  • it's long enough to test the cooperation of the tenant and their ability to be amenable to others.
  • it's long enough to avoid becoming a transient boarding facility.
  • it's short enough to be able to issue a notice of non-renewal.
  • AND it avoids a tenant paying rent for just one or two months and then squatting on the rights of their lease w/o further payments.

IMO, a long term lease ONLY benefits the tenant.

 J,

In a 3 month lease would you do a 1st month and one month security?

Just about finished renovating a 2nd house that I own. Seeking to begin renting January 1st. Have never been a landlord before. As such, is it best to do a Month to Month (1st months rent and one month security deposit) or a Yearly Lease (1st and last months rent + security deposit)? I thoroughly comprehend the screening process and the dos and don'ts of qualifying prospective tenants. Just need to be aware of the pluses and minuses related to month to month and yearly. 

If it were me I would find out what law firm he is with or the name of his law firm if he is the owner. Then I would go on every social media out there, such as Facebook, and totally destroy his reputation with facts. I would agree to cancel all social media comments only after he agrees to move out. Hit him in his pocketbook since he's not worried about much else. 

You could also get the right characters to scare the s__t out of him. There are many creative ways to do this that do not put you in jeopardy of the law. 

Sorry, but I'm an old timer who just doesn't hold to the politically correct crap that permeates our judicial system these days. Following politically correct crap laws will get you absolutely nowhere. Nobody in our government or in our judicial system cares about anything anymore. There are no morals or ethics around anymore. They are doing a job for a paycheck and that's it. The lunatics have taken over and are running the asylum. 

Originally posted by @James Wise:

I am not recommending going against the law but to be honest your odds of being involved in and loosing a discrimination lawsuit are incredibly low. You only have one property. It should not be hard for you to fly under the radar right now. 

That said,

Which specific part of the fair housing law are hoping to avoid adhering to? I don't think there is anything to extreme in there.

 Thank You James for your reply.

To be honest the so called "Fair Housing Act" is just another example of a totalitarian state setting arbitrary and punitive conditions for any person who wants to simply rent their property. It's just one of a multitude of laws or acts, passed by rule happy politicians, to make life near impossible to live without a bank of attorneys at the ready to fend off people who sue for any cause. 

I have a house for rent in a very nice neighborhood. Most of the neighbors have lived there for many years. I want to rent to people who would not only take good care of my property but who would fit right into the community.  My understanding of the Fair Housing Act is that I cannot even advertise for the type of people I want as renters. And, if I try to screen the potential renters for the type of people I want, that's discriminatory. If I don't want young kids, or young singles, or people with pets, or certain groups that have a history of not taking care of property, I am not allowed to do that. But, the government is not going to reimburse me for damages or non payment of rent that could be the result of abiding by their Fair Housing Act. 

Maybe you can suggest a way that I can advertise so that I can reach the people that I do want as prospective renters and not end up violating the tenants of the Fair Housing Act. 

Why the government states that the Fair Housing Act does not apply to me but in reality it does apply to me, is puzzling.

I am fully convinced that we are now the "new" Soviet Union. 

Originally posted by @Kevin Harrison:

@Davison Horst, I would not, and if I were you I would consult with a lawyer to make sure it does not apply to you. But if you do specify that in your add you are leaving yourself open to all sorts of discrimination issues.

 Then why does it specifically state in the Fair Housing Act that if you have less than 3 single family rental units that the Fair Housing Act does not apply? Are they lying? If it does not apply how can it leave me open to all sorts of discrimination issues? Yes, I will be consulting with an attorney before actually placing my house for rent. Not trying to be difficult on this issue. However, I'm just trying to come to some intelligent conclusion on a government law. Maybe, since it's a government law, there is no intelligent conclusion.