All Forum Posts by: Heath Donnald

My tenant has a young adult child that was on the lease as a minor. Domestic issues has her asking about how to force him to move out. Two options I see as a landlord 1) If lease has been violated, eviction notice could be sent. 2) Request a new lease be signed due to new terms (whatever I decide they may be) and then not approve the adult child to be added.

Has anyone else dealt with a similar issue or have a recommendation? I don't want to wade into a domestic issue, but willing help if there's a good way. Thanks.

@Basit Siddiqi Thanks. I agree with the “little bit messy”. I was more worried about keeping business and personal expenses/accounts separate than the liability aspect. I’m working on improving my chart of accounts and funding stream for next time.

@William Harris Thanks. I wish I could’ve 1031. Tax hit should be too bad though.

@Ashish Acharya Thanks so much for the info.

My wife and I are partners in an LLC that just sold a flip. The expenses were paid from the LLC account for the 14 months I worked on the house. The house was in my name, not the LLC, so the settlement proceeds had to go to me and a personal checking account. Do the proceeds need to be deposited into the LLC account before paying off debts, or does it matter for tax purposes? Was this a rookie mistake? Should the house have been quit claim deeded to the LLC before the sale?

Hi Ellie,

There are a lot of options and unfortunately, just as many opinions on which is "easiest." Factors that affect that are access to cash, market, and personal goals. You may want to start by reading Brandon and Josh's book, How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started. With that said, there are three things needed. Money, Knowledge, and Hustle(Time). As an agent, you have some knowledge of value. If you're willing to hustle, you just need to partner with someone with money that needs a partner with some knowledge and hustle. My thought is to start with REO's. And in a tight market, you just need to fill the funnel. Hope that helps.

If you’re doing all the labor, then I think you could pull off your scope of work with your budget. With that said, if you’re marketing to college students, they will be rough on the stairs and spiral may not be the best option. Spiral would also require opening up the ceiling which gets into cutting joists and reframing which may require permits and inspections. Also, while spiral stairs save space, they aren’t easy to take furniture up and down. I just put a set in a fully rehabbed bungalow and opened the ceiling extra large to allow furniture to get upstairs. Once you start tearing out the drywall and reframing joists, you may blow your budget. Especially if there’s and plumbing or electric in the area. Also, make sure that the new proposed bedroom meets code as a bedroom. Of course, you’d need to run additional electric to those walls longer than 2 feet. And if you’re bringing in an electrician to fish cable, your budget is again in jeopardy. But, looks like a good project. Good luck with it.

If you know enough to know what to look for and have accounted for what you may find in a 1900 built house (knob and tube, old style NM illegally tied into that knob and tube), possible asbestos in flooring or HVAC, most likely lead paint, etc then you may be okay. It's the mention of "possible flood zone" that indicates to me that you may be surprised by something since flood zones are easy to know before an offer is made. I bought a 1921 bungalow with only a foundation inspection, but I knew I was gutting the place anyway and any areas I wasn't touching I knew enough to be comfortable without an inspection contingency on those. 

If you can get an inspector in there, it may be helpful in this case if you are having any second thoughts.

Introduce yourself to whoever you sit next to and ask about their REI experience.