All Forum Posts by: J Corona

Quote from @Kyle Wheeler:

Hey J,

If the family is willing to pay the rent I would have them pay.

Another question - What was your friend doing while he was not getting paid for 2 months with no contact from the tenant?

It sounds like he should look into professional property management.

Good Luck!

It's a duplex, one side he is setting up for STR and duplex needed work, such as new roof, siding, etc. He also works full time. I will help run the STR, but I told him he needed to get property manager from the onset. His realtor does property management, and i recommended my realtor friend who also does it. He didn't take my advice and went at it alone.

I think he actually found out tenant was in hospital about one month in and has just been hoping the past month that the tenant gets discharge.

Quote from @Theresa Harris:

does someone have power of attorney for the tenant?  My guess is yes in which case, get a copy of the document and let the family pay the back rent.  Someone is making medical decisions for them, so they should have the legal control over their finances to make sure bills are being paid.

Makes me wonder if the oldest child or whom ever is making descisions at the hospital has power of attorney even if there is no signed document. I work in the medical field and I don’t feel that a hospital medical power of attorney has any basis for anything else out of the hospital. 

Quote from @Theresa Harris:

does someone have power of attorney for the tenant?  My guess is yes in which case, get a copy of the document and let the family pay the back rent.  Someone is making medical decisions for them, so they should have the legal control over their finances to make sure bills are being paid.

Originally they said they did, than it turned out the tenant never signed the document. So no.

Friend bought his first property and inherited a tenant on a month to month. Verbal commitment to sign 1 year lease with me. Day of signing, tenant goes missing, and never came back, home sits with all his stuff 2 months. 

Just found his family and the tenant has been in ICU whole time, hes getting better. I told my friend he needs to start the eviction process now. Friend is hesitant and thinking of waiting for tenant to be discharge. His family says he has money and they have his debit card and want to pay back two months… doesn’t sound legal. Tenant is other in a coma or not with it.

What would you guys do? 

Dumb Question: I have a rental home that I owe 60k to bank. Would I be able to knock down and build a new home and once I sale, I use proceeds to pay off the first bank? 

My wife has me asking. I already told her bank has first lien, you can’t just go and knock down their asset. I’m thinking builder won’t touch without bank allowing them. Am I right? 

Quote from @Patience Echem:

I believe your taxes are based on your profits not loan. So whatever you sell your house minus what you paid for it.
Example:

purchase price $100k

Sell price 240k

Taxed 140k minus expenses. 
your cash out refinance is not a consideration for taxes and neither your loan amount as far as taxes go

 Thank you, that's what I was getting wrong, the loan amount has not bearing on what I sell the house for. Getting a cash out refi will just be an added expense. I do want to get out of this C class house and invest the profit into a B or B+ home. 

Quote from @Jason Wray:

When you sell it just do a 1031 exchange by buying another property and call it a day, that way no taxes 

I actually want to use money to buy a new primary. I have 160k in equity, should I cash-out refi and pulled the money saving in taxes,  than sell the property and the left over proceeds would be taxed… or am I going to owe taxes on the whole 160k? 

I am thinking the cash from the cash out refi is not taxable sense I have a new loan and I only owe taxes from the sale of $220k house minus - $170k new loan,

Cash out refi than Selling: I have a rental property I owe 60k, appraised 220k, I can get 168k cash out and pay off the 60k to have 108k in cash… now if I turn around and sell for 240k. Do I owe taxes on only the difference of 240k minus 168k = 72k? Or do I owe taxes on 240k minus - 68k = 172k ? 

Owe taxes on $72k or $172k ?

After 220 days of my Rental being on the market, and reading 3 Bigger Pocket books. I’ve decided my best course of action is doing a Cash Out Refi and using the 140k proceeds to buy more properties. 

Question: Do I owe my real estate agent compensation for the 220 days I listed? I am to using them to find my new properties. 

I have 4 properties and  have had a bad run of insurance claims on 2 of them , now I have a damaged roof on the 3rd one. I can patch it for $600 or put a claim for total loss. This property in 20 years has no claims 

Question: Does the claims on my other properties increase the premium on the 4th home, that has no claim ? Does claims follow the person or the property ?