All Forum Posts by: Jim Young

I rent a townhouse to three adult college students on three individual leases co-signed by their parents. I got a call from tenant A's father who said that tenant B threatened tenant C.  He went on to say that tenant B was suffering from mental health issues exacerbated by the COVID shutdowns.  Tenant's A and C feel unsafe and have moved out of the unit into tenant A's father's house.

I asked to speak with tenant A and C to hear their side.  It sounds like it was a verbal threat.  They do not want to involve the police.  There is language in the lease that could probably be used for an eviction case but it's not black and white.  I said I wanted to speak to tenant B first but I am open to the idea of finding a suitable replacement roommates to assume the leases, as long as the roommates meet my original screening criteria.

I spoke to tenant B and made the same offer, and tenant B was open to it.  I encouraged them to work it out between themselves and let me know what they want to do.  I offered to market the unit on Zillow etc. if they want to look for another roommate.

That's where it stands.  Tenant A's father (a co-signer) would like to see it resolved. 

What red flags do you see?  I'm thinking I should put an ad out for new roommates and ask tenants A, B and C who wants to move out. I'd probably let A and C break the lease and give B cash for keys if it came to it.  I'd love to hear some other ideas.  Thanks!

I'm looking at a property in Atlanta. The MLS Private Notes contain the following: "Seller to provide Limited Warranty Deed. No Disclosures". What risks should I be thinking about? Would this be considered clean title, or if not, what would I have to do to clean up the title? Thanks!

@Dan V. provided a great summary of what I've taken away from this conversation:  "Talk to the roofer about the roof and to your accountant about the tax."  Thank you to everyone that has provided feedback, it's all been very helpful.  

The only thing I'm still struggling with is whom to talk to about my furnace solenoid, which I didn't know was an issue until I started this thread lol.   

Make it a great day everyone!

I have the cash to do the whole roof right now.  My hesitation is based on two things.  First, if I replace the back half right now I'll be throwing useful value into the dumpster.  If I replace it now I'll have a new roof that will be five years old in five years, vs if I replace it in five years it will be brand new then with 20 years life in front of it, if that makes sense.  The second thing is depreciation, and I know it's pennies, but I'd rather write the expense off now in 2019 dollars, rather than in future dollars which may be worth significantly less 27 years from now due to inflation.  And I guess the third thing is that even though I have the cash now I'm trying to stay as liquid as possible for future threats or opportunities as I lack trust in our current economy. 

Not really looking for blessing or permission here, just checking my understanding of repair operating expense versus replacement capital expense, and wondering if anyone else has replaced just one half of a roof for similar reasons.  Having said that, I appreciate all your feedback and input, thanks for taking the time to respond!

Correct me if I'm wrong, but depreciation lets me write it off over 27 years, but if it's considered a repair I can write off the entire cost this year, right?  Seems preferable unless I'm missing something.

What problems do you foresee with replacing half at a time?  Warranty issues?  Aesthetic (you can't see both sides of the roof at once from anywhere on the ground)?  

The roof on my townhouse is nearing the end of it's useful life.  The ridge cap recently blew off and I'm facing the old "repair or replace" question - with a twist.  It's a simple peaked roof.  The front slope faces SW and is exposed to the sun.  I could replace it right now and feel good about it.  The back slope is more protected and has more life left.  I don't feel so good about replacing it right now.  A roofing contractor suggested something I'd never heard of: just replace the front half.  He said that way it would be considered a "repair" and could be expensed as opposed to replacing the whole thing which would be a capex and would have to be depreciated, not expensed.  Does that make sense?  Have any of you done that?  Thanks!

@Kim Durst it may simplify your analysis to think in terms of "acceptable IRR" of the lake house in a vacuum. Run an IRR of the lake house based on projected revenue, maintenance, capex, appreciation, etc. if that return is acceptable to you, keep it and go find other capital to buy the other smaller properties.

Hi John Miller, I'm an investor in Roswell who recently got my real estate license.  I'm building a business that integrates flipping, buy-and-hold investing and "investor agenting".  By "investor agenting" I mean helping other investors buy and sell investment properties.  The idea is that investors think differently than retail clients, and are looking for different knowledge and assistance from an agent.  

For me getting my license has been a good thing, and I think it may be for you too.  I'm happy to chat more!

@Chris Long

I’m fairly sure that appliances are considered appurtenances meaning that unless they are mentioned in a special stipulation on the sales contract they go with the property. If the tenant feels they have claim to them and the seller “sold” them to you as part of the property, your complaint may be with the seller. Can you contact them and get their side of this?

I'm looking for a good reference source for GA real estate law and practice standards. There are obviously a ton of exam prep materials out there, but I'm looking for something that targets the practicing professional investor/landlord/licensee, not the aspiring agent.  It could be a book, or it could be a site. What's your favorite?