All Forum Posts by: Jason Rogers

I am currently trying to Refi a BRRRR property and I have one last hurdle to clear. The lender is asking for proof that the leases for a duplex that I recently purchased transfer to me. I am in Michigan. I can't seem to find anything concrete to tell them. I know that there should be something, somewhere, but for the life of me I can't find it. All I can find are forum posts from lawyers saying that unless the lease expressly says that it does not transfer to the new owner it does transfer and that the new owner buys the property including existing leases. Does anyone know where I could find this information to provide my lender? It is literally the only thing holding up my refi. Thanks in advance!!

I have an older tenant who recently had a health issue for which he needed to call paramedics. He was unable to open the door for them so they had to kick it in. Who pays for the new door. He is an inherited tenant and I don’t see a renters insurance requirement. Has anyone else ran into this or have some insight. Thanks for any help that you can provide.

@Isaac Phillips we actively invest in the area. Shoot me a PM and we can discuss.

@Cara Lonsdale I can help with all of this and have in the past with other investors from out of the area. There are definitely some pitfalls in the area that can be detrimental to your cashflow. Send me a DM and we can discuss.

Thanks gentlemen! I am just trying to whip up a quick P&L for a refi and I had a simple answer on my apartment building as the numbers made sense, they were roughly 10% of the property value. This one was twice what I paid for the house! Thanks for the input. I'll dig in some more before doing the taxes!

Hello BP Community,

I am trying to get my P&L put together and I stumbled when trying to calculate the basis for depreciation. 

Purchase price = $24k

Rehab Cost = $24k

ARV= $65k

My understanding is that the basis for the property would be $48k- Land Value= Basis.

I went to the county site to get the land value for the property and it says $50k! So my basis is $-2,000?!!! I'd appreciate any insight as to how to get an actual basis for this and if I need to get this cleared up with the county.  Thanks in advance!

@Davido Davido

The widow has her own home a mile or so away. The house is free and clear. I really like the mobile notaries and prepaid QCD! Pro tip! I don’t think that the QCD will work on this one now that I’ve talked to a title guy, but I’m filing that for later use! Thanks for all of your input.

@Wayne Brooks

I have to believe that the wife would get it but for some reason she didn’t get it in the probate process. I dropped a note at the brother’s house with a card yesterday. I’ll follow up tomorrow on that. I spoke with a local title guy and he said that a QCD will not do. Everything must pass through probate. I think the wife is most likely to get it. I think that I am going to try to get it under contract with her and see if we can get it through probate. I’ll update with any developments. Thanks for the reply!

@Davido Davido

The property is still titled to the deceased. The probate court is not honoring his will in which the property was conveyed to his brother. So it is just hanging out there in limbo. Widow and brother-in-law do not speak. This kind of has the feel of needing an investor to come in and do something to move this thing or it’s going to end up in tax foreclosure.

@Davido Davido

Thank you for your response. My understanding is that the wife is the executor. While much of your response is still valid the one issue (and this happens a lot because everyone knows Jackson, MS) is that we’re in Michigan. In Michigan after 2 years of unpaid taxes the property goes into forfeiture, which basically means that you have one year to pay off at least the first of the two years back. If at the end of the third year no payment has been made the county will foreclose. When this happens everything is wiped out (with the exception of some federal tax liens) including any owners, mortgages or other liens. The county then has “clear title” to sell to the highest bidder at the county tax auction. All of those funds go to the county. This particular property will go into forfeiture 4/1/2020 so it will not be foreclosed by the county until 4/1/2121. My theory was to basically get both of them to quit claim it to me for $x each and move on from there. I am trying to run down some of the ins and outs of our probate/ title stuff but there’s a lot to sift through. I think if I could get them both to quit claim it would be in the clear, as they would really be the only two people with equitable interest. I just don’t know for sure if that gives me clear title. I have access to people at both local title companies so I am trying to work that for some answers but I haven’t heard anything back yet. I’ll post an update when I hear something. Thanks!!