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 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /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: David Dachtera

David Dachtera has started 94 posts and replied 4494 times.

Post: Does it ever make sense to sell at a loss.

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995

@Mike Boss,

We have the expression, "cut your losses". That may apply in this case.

My $0.02 ...

Post: Corporate Transparency Act

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995

Just heard about this tonight ... Google: "corporate transparency act summary"

It's set to take effect Jan 1, 2024, apparently. Here's a little of what may come up:

"The Corporate Transparency Act (CTA), enacted in 2021, was passed to enhance transparency in entity structures and ownership to combat money laundering, tax fraud, and other illicit activities. It is designed to capture more information about the ownership of specific entities operating in or accessing the U.S. market."

Consult your legal counsel.

Another item to Google is "FinCEN"

Post: Communism and Capitilism

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995

An important point to remember about U.S. housing is the Crash of '07 / '08. At the time, economists pointed out that some 80% of builders and developers went under resulting in new construction coming to a virtual stand-still. This housing shortage was predicted back then as a result of this temporary slowing or stoppage of new construction. 

Even with few or no new homes being built, people continued to graduate college, get married and start families. The refugee and immigrant issues made that even worse.

My $0.02 ...

Post: Hosting an Open House? Secure seller's prescription meds!

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995

Good Morning America this a.m. (10/29/2023) had an interview with the late Matthew Perry ("Chandler Bing" from "Friends") from a little while ago where he talked about how bad his addictions got at one point in his life. Real estate agents/brokers and others should take heed. He used to visit open houses and check the medicine chest for pills he needed to support his addictions (mostly opiates). He would steal people's prescription medications.

One might be wise to admonish sellers to secure their prescription medications before letting people wander freely through their home.

Post: Sold my portfolio and the property management isn’t paying me out

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995
Quote from @Sue Vivilacqua:

Thanks Mike. That is what I was thinking too. The company is Tri State Property Services owner is Rebecca Gabbard( or Cirisan )  she uses multiple names. She does property management in Toledo and owns Flippin Crazy club and she buys and flips homes all over Ohio and Florida. She started out great but this last year has been hell trying to get correct rental income..constantly trying to get her to communicate with me etc. every month for the last year I ask why I’m not getting paid the balance in the ledger and she always says it’s because some of the funds are advanced rent payments that I won’t get till the next month…been going on awhile. Well now everything was sold and closed escrow Sept 7th…and I’m still trying to get my money. Then in closing I find out about huge water bills and see the monies she took from me in 2022 never hit the water department as a payment and she is refusing to address this with me. I’ve sent her proof from the water department, copies of leases showing the deposits paid, a copy of the ledger from her records that shows the balances and missing deposits and water bill deductions. I’m ready to fly out there myself…and stand in front of her office until she cuts me a check…at this point with what she owes me it will be worth it. 


What did your attorney say about all this?

May be time to retain legal counsel and schedule a one(two?)-on-one with the offender.

Post: Ever consider collecting all rent up front for a discount?

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995

There may be auto-pay options at the renter's bank that could be worth exploring, though if I were to go that route I might see about an escrow company such that the renter can make one large deposit, then the escrow company makes their monthly payment. Not sure how the escrow charges would balance out. I'd need to run the numbers. The renter would probably need to add a year's worth of escrow charges to their deposit.

When I started renting back January of '17, I had just sold my house and had cash enough to pay in advance. That way, whatever the year would bring, I'd at least have a roof over my head as long as I could keep up with the utilities. The property manager balked at it. Everything worked out o.k. since I was also newly eligible for social security which kept me afloat until I got established on a part-time job.

My $0.02 ...

Post: Stop Inspecting Occupied Rentals

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995

Yes, this is obviously a business promoting itself. 

One of the first rules of marketing is to grab the reader's attention with your headline. He did that.

... and yes, there will be naysayers on both sides: tenants and landlords / managers. Being negative is almost in our nature.

I would agree that scheduled periodic inspections and maintenance would be good. Home owners do it, so why not managers / owners / landlords? While you do want to respect the tenant's privacy and follow the law / local ordinance, try to maintain a professional, non-invasive, non-punitive demeanor.

My $0.02 ...

Post: city illegally telling me to shut down my Air BNBS ?

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995
Quote from @Ashley Turner:

I have 2 rentals (they are townhouses right next to each other) for 2 years now, I have been doing air BNB out of them and the return is great and I was able to make this my full time job by doing the cleaning on my own! I love it and I’ve never been happier! 

When I first started I went to city hall, and asked if there was anything I had to do and to make sure it was allowed, they basically just told me everything fine it’s so new we really don’t have any rules in place do what you want…. Fast forward 2 years I get a letter in the mail saying I am to shut my air bnbs down immediately! 

Now I didn’t know much about zoning or any of this until this happened but I’ve did a lot of research, and I think what they are doing is illegal, they are treating me as if I am in a U-1 zone but I am a U-2 and in the picture below it says I am able to run an apartment hotel in this zone. So I’m unclear why I need to even go in front of city council and the zoning commission (and they also told me I will be denied before even giving me a chance)

Now they sent me a email the day of,  cramming both meeting with the planning and zoning back to back, today! 

If anyone is able to give me any advice or help. It would be appreciated!


I am in Brookpark OH and in a U-2 A4 zone


What did your attorney say about all this? 

Post: Angry sellers not returning earnest money

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995
Quote from @Jane S.:

This is not my first time finding out that a property I had UC had too many deferred conditions. But it's the first time I'm not getting my earnest money back.

The sellers accused me of acting in bad faith. However, their MLS listing stated the house was a 4-bedroom, and the 4th bedroom was in a partially finished basement, had no door, no light switch, no closet, and egress was not compliant with code. Also the so called bedroom was adjacent to the location of the room with the gas furnace & water heater and AC, and I was told that if the furnace was drawing air from the adjacent "bedroom" it could not be used as a bedroom or "office". I think that's why the entry door was not hung. I'm not sure I could get a building permit to convert this room into a bedroom.

There was only one light switch in the basement located at the bottom of the stairs and it operated both basement ceiling fixtures. (The mechanical room had a ceiling light with a pull chain.) So I should have walked away but now I'm looking at a dead loss of $5K. The property is in a very good well-maintained older location and had a lot of curb appeal. Sellers had done a fair lipstick job on the main and part of the upper floors.

The sellers installed a $50,000 solar array of 12.8 kw, which I also found out was way too much capacity in that location for the sole purpose of lowering the electric bill. The MLS listing also stated that "there would never be an electric bill" but our utility doesn't refund any money, they deduct if from the cost of the other utilities. There is always at least a $17/month basic service fee. So more BS in the MLS listing.

The sellers borrowed the money to pay for the solar array. I was surprised that they were able to borrow the total price. If it had been a leased system I would not have made an offer.

It took the listing agent about 10 days to respond to my requests for the sellers utility bills so i would be able to see how the solar  system performed. She never asked the sellers to provide them, according to my broker.  And there was no other way to learn how the system functioned. This foot dragging made it really difficult to do any realistic cash flow projections.

As an interesting side piece of data, the (currently getting divorced) sellers borrowed the $50K for the solar system, so they owned it, and it went live this February. They separated and moved out in May this year. Prior to that they had installed a beautiful, very expensive xeriscape landscape front and back, which is a joy to look at, and which also must have sapped their finances in addition to a new furnace, new roof, new central AC, and cosmetics in the interior of the house (LVT & tile etc).

I plan to call a few attorneys to try to determine what my liability would be because the sellers have stated their plan to take me to court if I challenge them.

What's your quick opinion, should I avoid the stress of litigation? Do I have a case?  According to my broker, they can't try to get more money out of me than the earnest money. But if I got legal representation and lost I have all kinds of very expensive liability.

I definitely think they snookered me by withholding the truth and the facts of the solar deal they made. 

Thanks much for reading this far. Maybe I should stay out of the market for a while.


Yes - get an attorney on-board. Sounds like a shady seller.

You'll always find folks in the market who aren't quite on the up-and-up.  Don't let it bother you. Take the lesson, grow the calluses and move on.

My $0.02 ...

Post: Lessons learned from wholesale deal turned into lawsuit

David DachteraPosted
  • Rental Property Investor
  • Rockford, IL
  • Posts 4,613
  • Votes 2,995

Comment deleted by respondent.