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All Forum Posts by: Daniel Y.

Daniel Y. has started 9 posts and replied 214 times.

Post: Asking good landlords about charges to tenants deposit

Daniel Y.Posted
  • Investor
  • Henderson, NV
  • Posts 227
  • Votes 86
Originally posted by @Tiffany Evors:

My husband and I moved out of our leased home a few weeks ago. We always kept the place extremely neat & clean the entire 13 months we lived there. We actually own and operate a high-end luxury home cleaning business.

We hired professional cleaners upon move-out & also had the carpets professionally cleaned at 6 months living there and again upon move-out and used proper chemicals and a professional power washer to clean any oil stains from the driveway we may have caused with our old work vehicle.
Our landlord charged us the following odd, ridiculous charges:

$3.33 To empty out the ice from the freezer ice maker
$1.08 To screw a lightbulb in the bathroom vanity
$30.00 To remove a nice black metal paper towel holder we had put in the kitchen cabinet
$6.67 To fill and paint a tiny minuscule hole barely visible to the naked eye in the kitchen pantry door
$3.00 For a smoke detector battery
$3.33 To remove a small piece of duct tape from a wall switch in the kitchen we had placed there because every time someone flipped the switch accidentally it would turn the dishwasher off. Most people thought it was a light switch or even the garbage disposal switch.
$13.33 To unscrew a small bottle opener and supposedly repairing the two little holes.
$20.00 To repair a cracked microwave exhaust cover, which was actually already cracked when we moved in, but we didn’t catch it early enough to get it on our move-in walk-through report unfortunately.
$6.67 To remove the piece of duct tape and residue over the crack of the microwave exhaust cover we had placed.
$3.33 To put a smoke detector back on the ceiling (We had finally removed it because no matter how many times we replaced the battery, we finally realized it was broken, we could never get it to stop the constant annoying chirping, And we forgot to put it back up before leaving)
And the most ridiculous one of all…
$20.00 To take our 2 trash cans to the curb along with the some extra bags of trash and old empty cardboard boxes. We came back to do it the day after moving out, the night before trash day, and they had already done it which she said was no problem they didn't mind, and then we got this charge! We didn't take them to the curb the day we moved because it is against HOA rules and we didn't want our landlord to receive a fine. Unbelievable!!!

There are numerous other small nickel and dime type dumb charges, totaling to $265.46, which the landlord took out of our deposit. We have never in all of our years of leasing nice homes, seen something like this. We are dream tenets every landlord wishes they could have… We treat the home with excellent care, keep it very clean, don’t damage the property and return it in awesome condition, which is why we have impeccable references both personal and professional and an absolutely excellent rental history. We pay our rent every month, don’t cause any problems with the neighbors or for our landlord and we have always received our full deposit back upon moving out. We are dumbfounded and wondering if we should just accept this or what we should do, if anything.

Professionals, please advise! Thank you,
The Evors
Austin, TX

That is very unfortunate, and we are sorry to hear about that situation. Most people here are landlord, however we are siding with you from the comments you've seen previously.

I'm just curious, for my personal research, is the landlord local or do they live far away? Are they self managed or do you have a PM? Do you happen to know if they own just this property, a small handful properties, or 7+ properties?

Thanks for taking the time to answer these questions. Again, hopefully the next landlord would be much better for you.

Post: Newbie seeking investor friendly local agents in north OC

Daniel Y.Posted
  • Investor
  • Henderson, NV
  • Posts 227
  • Votes 86

One of the meetup that Joe mentioned in Irvine is this Wed, and I will be there. PM me and I'll send you more info about the meetup as I don't think I can post links here due to website policies. I invest out of state, but not in those area. However, I have been looking at Las Vegas.

Post: Marketing for 5-20 multi-unit apartments

Daniel Y.Posted
  • Investor
  • Henderson, NV
  • Posts 227
  • Votes 86

Have you tried going to some meetups, specific wholesale meetups, in the OC or any surrounding areas? You can probably pick up some good advice there. Talk to @Joe Homs, he has a wholesale meetup that focuses on residential property in OC, but you might be able to transfer some of the concepts to commercial.

Post: Syndication or Partnership?

Daniel Y.Posted
  • Investor
  • Henderson, NV
  • Posts 227
  • Votes 86

@Brittany Sanchez That's crazy. From your numbers, they are asking for ~6% Cap rate on the property, while your number suggest ~9.2% Cap rate. The reason I ask is because there may be a creative way to structure this, which is if the owner was willing to do seller finance. You get a loan from the bank first as a first lien, then you still have owner financing come in as a second lien to pay for the down payment. However, at 875k, it just won't work. The other hurdle is if the first lender would even allow a second lien on the property, so you would have to search and ask.

Good luck with the property! If it doesn't work, you will find another in the future.

Post: New BARRRR Article Question

Daniel Y.Posted
  • Investor
  • Henderson, NV
  • Posts 227
  • Votes 86
Originally posted by @Brandon Hall:

Hi Daniel - glad you enjoyed!

For a duplex, the majority of the repairs you make will be capital expenditures (added to the basis of the property) and will be depreciated, liked over a 27.5 year period. This is true regardless of the date you advertise the property for rent. However, you should advertise the property for rent early on (or midway through) the rehab in order to provide your tax pro with the potential flexibility to deduct some of the costs incurred. 

As always, don't implement this without the support of a tax pro or you're asking for trouble. 

 Hi Brandon,

Appreciate the reply. So the example you used in your article was more specific for a SFR?

Definitely will talk to my CPA about all this, but just want to gain some additional knowledge before the conservation. I could probably spend a few hours just talking about tax strategies...that's normal, right?

Post: Syndication or Partnership?

Daniel Y.Posted
  • Investor
  • Henderson, NV
  • Posts 227
  • Votes 86

Hi @Brittany Sanchez,

How much does the build cost, net cashflow (monthly gross revenue minus monthly expense only, do not include any estimated mortgage payments), interest rates and terms (amortized over 20 ,25, or 30 yrs) from both bank and seller? And I'll see if I can help suggest a potential structure.

Daniel

Post: New BARRRR Article Question

Daniel Y.Posted
  • Investor
  • Henderson, NV
  • Posts 227
  • Votes 86

The recent article regarding BARRRR is very interesting written by Brandon Hall. One question I had in mind if anyone could answer is what would be considered as "In-service" for 2-4 units. If I had a duplex and one unit was occupied, and I was fixing up the other vacant unit. Would the whole property be considered as "In service" so I could write off most of the updates in the vacant unit as "operational cost" instead of depreciating it? Or would the IRS try to separate it, saying that the vacant unit was not advertised, and therefore is not in service?

Post: Setting Up LLC Under Different State

Daniel Y.Posted
  • Investor
  • Henderson, NV
  • Posts 227
  • Votes 86
Originally posted by @Steven Hamilton II:

Got cut off...

CA will wantme to register if I am active in any way In the entity. CA is aggressive in wanting regiatration.

If the LLC owned property in 4 states I'd have to register that llc in all 4 of them Plus if I live in a different state I would need to register there too.

 Hi Steven,

What would be considered as "active" to CA? I plan to do flips in TX under a TX LLC when I live in CA and will have a partner. I would be the money and they would be doing all the work of oversight in TX. Would I probably still have to register or pay them the $800 franchise fee? Any help or direction would be appreciated.

I have a CPA, but they don't do too much OOS structuring. This question also came up because of how confusing/aggressive CA with getting money. I was talking to an investor who lives in CA, but has rentals in OH. For some reason, CA found him "active" and forced to him to pay the $800 franchise fee. I'm not sure he even has an LLC open in OH, it could be be a few properties under his own name to get conventional loans.

Daniel

Post: Fractional ownership in syndicated LLC in IRA, $800 LLC tax?

Daniel Y.Posted
  • Investor
  • Henderson, NV
  • Posts 227
  • Votes 86
Originally posted by @George Blower:

@Daniel Y.

Are you investing the CA LLC in real estate located in Texas or real estate located in CA?

No, the question is if I live in CA, but have no LLC created at all in CA. If I do flip deal in TX, where we create a LLC because there are a few partners. Does CA require me to create a LLC or pay a $800 fee, which is equivalent to the LLC franchise fee, for "doing business" in Texas?