All Forum Posts by: Julie Groth

I'm considering the same thing. Here's my personal experience with mattresses:

-I hate memory foam (hurts my back and they are hot, regardless of the claim) so I personally wouldn't rent a house that ONLY had those as an option

-I've bought expensive/quality beds for me. They all sag in the middle after a couple of years or less. Too much of a hassle to swap out the bed via the warranty. Have done it but...there is sometime a fee, etc. So, I can spend more money for these but still need to replace them (whether it is warranty or not). Warranty may not hold up since it is commercial property.

-I've bought those mattresses from Craiglist or street signs where it says "new, in plastic". It's very cool thing to do. Show up at a storage unit and they'll put out new mattresses to lay on and try. High quality stuff, really. Comfy. Cheap. Queen box spring and mattress for $200-300. I think I'll go this route, then replace them every 1.5 years or so, depending on how they hold up.

In all cases, I will go with a high quality topper.

Also planning to have platforms built so that I just have to get mattresses. The platforms will make it easy to attach any kind of headboard. And, you don't hit your toes on the posts or frames.

I'm considering the same thing. Here's my personal experience with mattresses:

-I hate memory foam (hurts my back and they are hot, regardless of the claim) so I personally wouldn't rent a house that ONLY had those as an option

-I've bought expensive/quality beds for me. They all sag in the middle after a couple of years or less. Too much of a hassle to swap out the bed via the warranty. Have done it but...there is sometime a fee, etc. So, I can spend more money for these but still need to replace them (whether it is warranty or not). Warranty may not hold up since it is commercial property.

-I've bought those mattresses from Craiglist or street signs where it says "new, in plastic". It's very cool thing to do. Show up at a storage unit and they'll put out new mattresses to lay on and try. High quality stuff, really. Comfy. Cheap. Queen box spring and mattress for $200-300. I think I'll go this route, then replace them every 1.5 years or so, depending on how they hold up.

In all cases, I will go with a high quality topper.

Also planning to have platforms built so that I just have to get mattresses. The platforms will make it easy to attach any kind of headboard. And, you don't hit your toes on the posts or frames.

Personal opinion...if you own real estate or operate a business, you expose yourself to risk. Operate in an LLC (or other entity like a trust) and make sure you do it right so as to not have anyone be able to 'pierce the corporate veil' should you ever find yourself in a lawsuit.

A regular LLC is a flow-thru entity doesn't file a separate tax return and is relatively cheap to have and do. Why not? I assume some people are suggesting that you buy real estate in your personal name. Without the protection of a company, your personal assets (home, personal bank account) are at risk.

Our accountant told us that the IRS views short term/Airbnb rentals as running a hotel- active income (ie, you are running a business). Even if you hire an outside management company. Therefore, we have an LLC that has elected to be taxed as an S-corp to have those S-corp advantages for active income.

BTW, at a conference, I heard an insurance expert say "insurance is like Swiss cheese". Of course, you should have it. Probably at the highest limits you can afford. 

My opinion, insurance is like caulk on a house. It should not be your first (and certainly not your only) line of defense against water intrusion.

I'm about to hire a management co for a ST rental I have. Does anyone have a good breakdown of what I should expect regarding expenses? What's typical for a mgmt co to charge for, in terms of expenses (outside the mgmt fee)?

My funding partner is borrow the money from a bank (he's got the cash outlay of a down payment and loan costs). He will pay to buy the lot and build the new house. I'm putting the deal together and doing ALL of the work (house plans, hire builder, choose all fixtures, market for sale). We each will be paid a % of profit, plus he'll get 8% on his cash outlay.

I assume that all of his income is passive (the 8% part and the equity share part). I assume that all of mine is active income.

Correct? Do we need to put special language in our JV agreement to make sure of this?