All Forum Posts by: Joshua Taffe

Quote from @Tyler Fontaine:

Check what your lease says about utilities, who’s responsible for them being turned on/paying them, and so on.

Connect with your local real estate attorney and get guidance on a course of action.

 Let's say you get a service call for no hot water when it gets checked out there's no gas to the hot water tank to light the pilot. The tenant has the utilities in their name and the gas was recently shut off for non payment since September. To get the hot water tank re-lit again is another service call that charge goes to the tenant? It was shut off due to their negligence.

Closing on a quad what next? 

1. Get tenants on a new lease paperwork with owners name (includes handyman inspection) . 2. Open 4 accounts (Income, expense, Capex, save account). Any other advice thanks.

Quote from @Basit Siddiqi:

To add on to what others have said.

Normally a cost segregation is to determine what is purchased.
You don't necessarily need to do a 'post renovation' cost segregation study, especially if you have a detailed scope of work of what work was completed.

Best of luck.

Thank you Basit, 

I wanted to hear what sentiment you can share on the allocation of STR vs LTR and using it the material participation for the STR to qualify for an active trade or business. Essentially do you believe it can be done in a multifamily or do you believe it's all or none situation. Thanks!

Quote from @Dave Stokley:

I own 3- and 4-unit buildings with STRs, but we only have 2 STRs in each. They do not have pools. We've never had issues with multiple STR units that we wouldn't have with any other STR in a multifamily building. You know... tenants complain that STR guests are having loud sex at 2 AM; STR guests complain that tenants are having loud sex at 2 AM...

Hi, I wanted to know you manage them yourself and the is reason being for STR loophole purposes were you allowed to take the depreciation against your income?

Quote from @Chris Seveney:

@Joshua Taffe

Reasonable is getting anything under 7% which is today's rates.

Why would a seller lend money for less? Why can’t you just get a conventional loan?

If they finance it at 0% they lose $ as they still pay taxes as if it was financed at 4%.

1. To close a deal that won't appraise? 2. They have a bottom line price that they won't sell for less than, so if you give them their number or come close to it as comfortable and it's the best offer they've gotten in 90 days on market why wouldn't they take it? 

Quote from @Chris Seveney:

Quote from @Joshua Taffe:

What terms are better 100k seller financing amortized over 20-30 years with a ~7-10 year balloon at 0% interest or 100k at ~1-4%(not sure the exact number but interest will be attached) with a 7-10 year balloon?

not sure I understand the question, you the borrower or lender? 

 I would be the borrower. The seller pretty much would give me my terms. I still want to be reasonable.

I have a quad w/ 2 units on LTR (1 Unit needs Reno, once a tenant moves out) and 2 units on STR after conducting a cost-seg and using the STR loophole with material participation against my W2 income would the entire structure be used, or just the STR units. Would how would the Renovation come into play with partial asset disposition. The basement is unfinished, how would that come into play if I wanted to finish it and put two basement apartments in it. I know this is a lot but I can't seem to find an answer. Essentially would the cost seg active losses for the 2 STR unit business still be able to be used against the W2 income. Yes assuming all the material participation happens.

What terms are better 100k seller financing amortized over 20-30 years with a ~7-10 year balloon at 0% interest or 100k at ~1-4%(not sure the exact number but interest will be attached) with a 7-10 year balloon?

I was speaking with a lender that was doing a preapproval for me and he said for conventional duplexes 20% are always required even owner-occupied is there anyone that can shed light to this?

I was speaking with a lender that was doing a preapproval for me and he said for conventional duplexes 20% are always required even owner-occupied is there anyone that can shed light to this?