All Forum Posts by: Donnie Mac

My wife recently had to move her Mother to a nursing care facility and we now have the family property we are looking to rent (title already in my wife's name). This is our first venture into landlording, and as a long-time Big-Pockets listener (this is only my 2nd post), we are hoping to use it as a springboard into the start of a long-term investment portfolio. The property is 3/1 SFR located in rural SW, MO (65604). Currently we are not interested in selling the home, or making major improvements (yes the 1 bath is not ideal), but instead renting it as-is and see how it goes. We live out of state (CO), and will be self-managing this property long-distance. Fortunately she has family that lives on the same road as the property and can keep "an eye on it", but will not be involved in any property management needs. We are also working with a local acquaintance who is very active/familiar with the unique market of rural "country" rentals & is helping us with the necessary contract docs., tenant screening, etc.

1.) Any specific tips on long-distance, self-management? We do not see the need for a property management company to deal with the basics, but how do you deal with repairs, evictions, inspections, etc.?

2.) Any suggestions on contract-to-deed? This is an option we have considered for the future, depending on what the rental market dictates.

3.) Income Tax Tips? We are looking to get the property rented before end of calendar year, so we will be reporting the property tax, but also the income from rental. Any big changes here to note, or pay attention to?

We are looking forward to the process and will do our best to document our experience for any other members interested.

Thanks in advance for any feedback, tips, suggestions, or warnings regarding this unique market!

We currently have a rural home (our very first rental) listed for rent in Ozarks, MO and have had some interest from some potential tenants that own horses.  There are 12-acres attached to the property that are not currently utilized.  We have no issues with the horses on the property, but are wondering if there is any concern over liability if the horses get loose and damage others property, get hit by a car, etc.  We would leave the securing/reinforcing of the fence up to the tenants.  We are going to call our insurance agent to discuss, but thought we would get anyone's first-hand account if possible.

• What is our liability (if any)?
• Can we require that the tenants carry extra insurance?
• Is this type of coverage even available for renter's insurance?

Thanks Dave, your info. was very helpful and kickstarted me in a completely different direction.  The 1031 was definitely the wrong approach, it was easy to overthink it.  I appreciate the newbie help!

I have a unique situation with property owned by my Mother (still in her name). She currently owns a 10 acre parcel in rural Southwest MO with a 2,000 s.f. 3/2 SFR. Due to neglect, this house is a serious fixer-upper & will need a complete renovation. We both live in different states and at this time are not interested in flipping the house, but selling as-is. As a cause of the neglect, the home is currently unoccupied, not her primary residence and Mother is currently renting a home from a private landlord. My brother & I (the only benefactors) are trying to help her do some estate planning and want the best strategy that makes the most financial sense. A 1031 Exchange on the surface seems like a good option that we could then roll into an additional investment property for her to occupy (house-hack). If my Brother and I can use the proceeds to purchase say- a duplex property, Mom can live on one-half, we can rent the other half out & it will save her a large portion of her fixed-income. The main goals with selling the property are to: 1.) shelter the proceeds from sales/inheritance tax 2.) alleviate the monthly expenditure to an outside landlord 3.) provide a long-term investment for both siblings 4.) shelter (by transferring of title) what has become Mom's sole asset from being garnished should she need long-term care (nursing home, etc.). We are anticipating a sell price of $75k-$90k that can then be used as a down-payment for a rentable property.

    Here are my questions:

1.)  If we sell the house & transfer it into our names, do we need to transfer Title before the sale/1031 Exchange, or can this be done after?

2.) By selling the home and purchasing a home for her to "rent", are there any problems created with 1031?  I am assuming since the property will be in our names and not hers, we will not run into primary residence issues with 1031?

3.) The plan is most likely to sell the existing property and invest the proceeds in a different state- does this make any difference?

4.) In transferring the property to the sibling's names', what is the timeframe that the assets will be protected from garnishing from long-term care, etc.?  I know each state is different.

I am sure a lot of these questions would be best dealt with a financial advisor/estate planner, but this seems like a good opportunity for my brother and I to begin a  portfolio of long-term investing that will benefit everyone much more than the traditional sale of property with sales taxes paid and put into an account.  Thanks in advance for all of the help, go easy on me, it is my very first post!