All Forum Posts by: Dustin Baldwin

email details please - [email protected]

Thanks everyone for your input. The conclusion I have come to is that I need to find a reliable accountant and attorney who actually invest in real estate themselves. I have two professionals helping me out now, but they don't seem knowledgable on the topics. I will continue to search for a good accountant and RE Attorney in the area. Thanks again for your help! 

Hi Everyone, So I am a relatively experienced buy and hold real estate investor who is looking to partner 50/50 with someone on some different flips, and possibly larger properties. My question is this: We reside in FL. Is it worth while to incorporate us as owners of a Nevada or Wyoming LLC to own a Florida LLC? Or just make be 50/50 owners of the FL LLC? We both also have our own separate LLC's but an attorney recommended just creating another LLC as 50/50, rather than an LLP. Any help is greatly appreciated. Also, looking for recommendations of a good real estate attorney in the St Petersburg, FL area! Thanks so much! -Dustin

Hi Everyone, So I am a relatively experienced buy and hold real estate investor who is looking to partner 50/50 with someone on some different flips, and possibly larger properties. My question is this: We reside in FL. Is it worth while to incorporate us as owners of a Nevada or Wyoming LLC to own a Florida LLC? Or just make be 50/50 owners of the FL LLC? We both also have our own separate LLC's but an attorney recommended just creating another LLC as 50/50, rather than an LLP. Any help is greatly appreciated. Also, looking for recommendations of a good real estate attorney in the St Petersburg, FL area! Thanks so much! -Dustin

Thank you sir. 

I just received a call from one of my tenants saying they found the other tenant dead in his room. Sheriff's Office is investigating the cause (looks like suicide) and will be contacting Next of Kin to notify and come pick up his things. My question here is, am I required by law to disclose that there was a death in the house to the next renter? Have any of you experienced a death in your rentals? If so, any pointers that I may not be thinking of. 

On a side note: Thoughts and prayers with his family. He was way too young for this to happen. 

So here is a rather interesting situation that I would love some input on. 

I rent my 3/2 house in St Pete, FL by each individual room. Two girls (one a close friend), just signed leases as of September 1st. The 3rd is month to month. Lets call them A, B, and C tenants. 

A) Good friend, responsible, renting the master for $650

B) Stranger, other two girls already complaining about her, renting small room for $550. 

C) Been in the house over a year and lease is about to expire this month. Super cool, responsible girl. Also has became a friend over the year. Renting $550

My predicament: I have to relocate back to St Pete from TN and am looking to move back into the house so I can have a place to live and work on fixing it up to sell in 12 months. Tennant A & B want this to happen because of their immediate dislike of B. I emailed Tennant B) 4 days after she moved in (she's not unpacked yet), offered to give her SD back, along with full months rent and utilities, ultimately giving her a month free if she would move out by October. I gave this as an option, not a demand. I explained if she did not want the deal that I would give Tennant C the 30 day notice to move out since she does not have a 12 month lease in place. 

She has come back and demanded an $1,850.00 stipend in addition to all of the rent and utilities back for her to accept this deal. 

I am clearly not taking this as it is unreasonable. She only has a mattress in the room with 3 boxes. (coming from college). So I have mentioned that I will give the notice to tennant C and move into that room. 

Now she is telling the other two that she would feel uncomfortable if I moved in and does not want to live with me. 

So here are my questions I need help with: 

-Does she have any legal recourse if I move into the house? Especially after I gave her the option the break her lease? 

-If I didn't want to kick C out, could I turn my 4th room into a bedroom and move in without any legal recourse? The lease specifically states she is renting (1) room, shared bathroom, and use of common areas. No specifics on who lives in the house. 

-When I go to sell this house, does FL require the buyer to honor their leases or can they terminate the leases? As it stands I do not have a clause describing the selling of a house and notice to vacate. 

-Should I just look for an apartment and save myself the battle of trying to live in my own house? 

If B does not take my original deal, her situation is not going to be good because the other two do not like her pettiness and princess attitude. If I move into the other room, she will feel uncomfortable. Sounds like a good deal to leave if it were me, but again I am unsure of any laws buried deep in the FL State Statues that I am not aware of. 

Sorry for the long winded situation, any help would be greatly appreciated!!  

Thank you everyone for your recommendations! I was hesitant at first considering the lack of meeting the "2% rule" but I'm glad to know that I was not in the wrong by thinking this is a good opportunity. I am very new to real estate investing so I didn't know if there is something I wasn't factoring in or overlooking other than vacancy and maintenance. Everyone on here has been very helpful! 

So, how important is the 2% rule really? Especially if you are producing good cash flow after expenses? 

-Dustin 

Bob, Thank you very much for your insight. I'm actually renting a 3 B/R condo and sub letting the other rooms. Covering the rent. The only reason I'm willing to have roommates at this point is that I'm 29, no kids, no wife. I guess I better take advantage of the situation why I still can.

You bring up a good point. 8K annually on 20,000 equity is a very good return. I never thought of it that way. For now I think it is in my best interests to hold on to it. 

Thanks again! 

@Faisal FarnasIm really happy you told me that the 2% rule is impractical in this area because I have been going crazy looking for deals that would come anywhere close to it. I have been researching different markets all over Florida and unless it is Section 8 housing or really bad areas down in South Florida. I bought my SP home in June 2014. 

Do you have any rental properties in St Pete yourself?