All Forum Posts by: Jon Dorsey

Yes it would reduce your expenses initially until they move out and now you have an inhabitable home that needs even more repairs or demolished. 

You need  to figure out which tenants are capable of receiving this gift and layout a repair schedule if they accept. Be realistic and give time to complete task, as they may not have a bunch of money to put towards items this will take time. 

Another option is similar and advertise them as handyman specials, and do the same repair schedule with them. Once again main items (roofing, floors, water/sewer, doors/windows, heat). Check your state laws. 

Best option may be to fix and flip them. That way people have skin in the game. 

Exactly. Don’t fall for it and move on. 

We don’t know your market as this is a pretty blank post. You state that there’s a $100 delta in rent and market and then talk about $400 end state but we don’t know where you’re starting.

Get it as close to market as possible that you can stomach, your tenants can handle, and feel you can clearly communicate when confronted. Then keep bumping until you’re at your market and keep it there  

You are tied to their old lease unless you get them to sign a new one with you. You could offer to get everyone moved over onto your new “monthly” lease with built in rent increase, or keep same rate but and then give them the heads up of rent increases per state law to implement rent raises sooner. Otherwise give appropriate notice based on old lease when the term is up. 

Whoever owns the home is responsible. Who has title? Might be worth bringing up to insurance if it’s covered. 

@Roderick Hullaby How did you find the tax lien as it’s not real property?

Talk with these guys: https://www.abr-i.net/

They consistently sale used mobile homes and may have some contacts for you. 

Let them know I sent you. 

I approach it as being the regional manager even if I have an on-site manager. Which is a true statement, even if I'm a member/owner of LLC.

Renew your leases with the new company, open up business accounts, and deposit rents to the new account. 

If tenants actually ask, you can say it’s under new ownership but retaining the same management. 

Get them to sign an affidavit that they hold no claim or better yet use a service like Snickfish to gain titles first. 

If you want it, get it under contract with provisions outlined for titles before closing. 

@Joe Hamner Are you hoping that a cost segregation will give you a depreciable basis that is more than your purchase price? Are these 2 things separate when it comes to taxes and establishing a basis?

As you stated there is the land value, which happens to be what you paid for the whole property, and the infrastructure which together should cost considerably more than your purchase price?

@Scott Schaar thanks that’s what I was looking for. So you got an electrician to come out and put a second pedestal up that’s connected to the 200 amp main pedestal?

Was it a quick project or did it take time for electrician to get it done?