All Forum Posts by: Mark M.

As stated on the Florida Revenue site,

Is a condo considered a single-family dwelling?

My thinking is yes but then again legal wording is always open to interpretation. For example, a condo unit versus a condo complex.

The PA laws are not very comprehensive and is basically all stemming from the Landlord Tenant Act of 1958 which does not really include specifics so I am researching other states and found more comprehensive information about bailment but no such specifics regarding what's permissible to be deducted from the security deposits or not.

If anything, the courts always seem to refer to other states' statues in helping define an area of law that hasn't been written down yet.

I am not sure on the specifics regarding the costs associated with tenants abandoning personal property.

Since we have 30 days to refund the security deposit, and if the tenant does not or refuses to claim any abandoned personal properties after X number of days, can the cost of storage or removal be deducted from the security deposit?

I understand I also have the right to sell the abandoned property after X number of days but if I need to remove the personal property immediately for the next tenant, can I deduct the cost from the security deposit?

I am sure there is a form somewhere online I can google but I can't figure out what it is called. Bottom line is, my rental includes a bi-weekly cleaning service. The tenants love it and more than glad to pay the "VAR" or Value Added Rent for it.

In any case, while I am here most of the time for the cleaning crew to show up and clean, there will be times where I may have to run out for an errand. I have a digital doorlock with three codes, (a master, a tenant, and a contractor code).

I am not interested in hearing whether you think it is a smart idea or not. The bottom line is, it is in the lease that a cleaning crew will clean the common area every two weeks.

What I need to find is a form where I can have the cleaning crew sign to say they agree to not give out the code for any reason. I know there is such a form that exist because there are cleaners who enter businesses after hours with no manager around because they have a key. Any idea of what to look for online so I can make a similar form for them to sign would be great.

What is that form called?

I have bought at least 5 books by different authors on real estate investing/landlording/rehabbing/tax liens/foreclosures on top of the rich dad series. I think the best thing you can do is really read them all and then unload the ones that do not match the plans you have for yourself.

Like Travis said, the CashFlow Quadrant is good for understanding how to shift your mindset. In that regards, I have not come across another other author who could make it that simple to understand. As far as specifics about the REI game goes, it doesn't really help. It will gloss over the basic ideas which is a good starting point.

Forget about all the negativies and half truths. All the books, and all the "experts" I have read/listened to are the same way. Everyone will think their highway is the right way and any other way is not the way.

As for landlording, I liked the book One Minute to Rental Property Riches the most because it cuts the bull out and straight to the goose. None of the books I read up to that point gave me as much information as this book had about landlording.

As far as going from one property to two properties to a dozen properties, it's tough to say there but I would say Fixer Jay did a nice job explaining how he formulated his strategy even if it is still glossing over the small details.

As far as taxes goes, the only ones that really helped me was Barry Crouch Rental Real Estate and Profits, Taxes & LLCs. It does not have anything to do with landlording or how to but rather the nitty gritty of the taxes and how you can maximize your end results.

As far as finding and selling, Find It, Fix It and Flip It was a terrific book in understanding how to increase the value of your property upon sale.

All of these books and a few others gave me a greater understanding of the various puzzles involved so I could pick the pieces I wanted to form my own puzzle picture (my strategy) and to be honest with you, I hit it out of the gate on my first purchase because of these books, not because of this highway or that highway.

Bought in April this year at 36K (seller went down to take my price), assessment is 49.5K, comps are 52.5 to 55K. Renting out by the room (4 beds, 2 bath) while I serve as the onsite property manager. First renter came less than 30 days after I bought it, now all three rooms are rented out. Had success with turnaround time at 20 days or less. Average rent in area ranges from 800 to 1100, currently grossing 1025 a month.

Looking for second deal so I can move into next property and work on it so I can rent out 4th room and bring gross up to 1400. Target goal is 1500 gross by 2013.

I actually met with both my accountant and two lawyers (one specializing in real estate and the other in business). I posed the same question you asked. I do not know if it is state-specific but keep in mind, you may pay additional transfer tax if you transfer the property into or out of your name or your llc. In PA, any time a property changes hands whether an individual owns it or not, a llc owns it or not, you must pay a transfer tax. So if I chose to transfer it into my name then an llc then another llc before into someone else' name, that's four transfer taxes to pay right there.

Isn't the goal to make the most profit possible?

What I did find out was very interesting. I set up a single member LLC because after talking with both lawyers, I found out it is possible to convert from a single to regular LLC and still hold the property in the same name of the LLC. I am not changing names, just merely expanding the LLC to more than one member. And best of all, no additional transfer tax.

You have to figure out how you want to exit the property. If you die tmw, who pays for the transfer?

Just a thought based on my experience and I only started after 5 years of reading, networking, asking questions, blah blah blah and putting the pieces to the puzzle together so I could see the bigger picture (ahem, bigger pocket, maybe?).

I certainly agree with you, the more, the merrier. It is a unique situation since I am renting out by the room. The rent includes everything which has made it instantly attractive to short-term renters (minimum 4 month leases which converts to month-to-month. So far, average turnaround time per rented room has been less than 20 days.

Property was purchased at 36K, assessed at 49.5K and comped at 52.5K. Comp and assessment may increase a little when I add a carport and a few cosmetic features (awning in front, covered porch in back) (rather have just comp go up and assessment stay same). Plan on holding it for at least 10 years from the looks of the market cycle in the area.

It is not your standard rental at the moment but eventually when I get a few more rentals and the economy recovers, I will be able to rent it as a single house. The average rental (4 to 5 beds, 1 to 2 baths) on this street runs from $800 to $1100 without utilities.

3 out of 4 bedrooms are under lease and will be renting out the fourth bedroom as soon as I find a second property within my target range. I am currently living in the 4th bedroom as an onsite property manager in lieu of income (and of course, dividends and guaranteed payment).

For the final four months of this year, I am currently generating $1025 in gross rent, with operating income (gross minus utilities and taxes) holding steady in the 60 to 75 percent range. Obviously, this will go up once I rent out fourth bedroom.

2011 is a loss naturally due to start-up fees and cosmetic repairs. 2012 target goal is 14K in gross with 65% in operating income (this includes 20 percent vacancy). Forward projection based on actual numbers this year should result in a 50% profit after all expenses (including operating expenses).

I know this is kind of an odd approach with respect to everyone else but in order to get where I want to get going, it is actually working out better than expected because of serious planning and number crunching.

I expect to add another property next year to bring total gross up to 20K or better before I start leveraging these assets to acquire 1 or 2 properties in 2013.

Jon - I don't know if they even go sledding on the hill here anymore. A lot has changed around here.

It makes sense to me. If I were a lender, I would want to see actual receipts going back two years or more to see whether the candidate is truthful in their request for a loan.

After all, look at all the mess the banks are in these days with bad loans. Do you have leases to show proof of future income in the next 12 months?

That may help with other banks if Wells is not interested right now. I wouldn't know for sure if that would help but from other local REIs and landlords I have spoken to, the local banks here certainly love that kind of detail.

Currently own one residential SFU rental in the York College area. Bought in April 2011 through my LLC and first tenant signed in May 2011. What else do you need to know?

Say hola.