All Forum Posts by: Justine Scheuher

@Michael Stutelberg Yes, local laws here say 30days... but I guess my question is--should I tell them now what my plans are? (ie. fixing up the units one at a time)?

I'm purchasing a 4plex. My goal is to move into one unit, fix it up, rent it out....and then repeat with other units as the current tenants leases are up. The first lease isn't up until March 2020. As long as they are good tenants, I would offer them the fixed up unit (that will probably be $250 more than their current rent), but if not..I wouldn't renew their lease. 

In the meantime, I am planning on raising the rents on all units as their leases are renewed (only by $50). My reasoning is because they are currently under market value and initially I will be doing some upkeep on the deferred maintenance of the house, putting in a security system, and cleaning up the common areas. 

How much and when do I tell the tenants?  Thanks! 

Thanks @Cameron Tope!!! I didn’t think about the homeowner part of it. I’ll reach out to a cpa

I closed today on a 4plex! I will be living in one of the units for rent free (or +/- $100 depending on utilities). I formed an LLC and opened a business bank account.

Question: Question, what is the best way to use the checking account to reflect accurate income for taxes.

Because I won't be cash flowing enough to make needed repairs right away--I will have to use my own personal money.  Does that mean I should transfer the money into the business account and then draw from there? I guess where I am getting hung up at, is whenever I add my personal money to the bank account--wont that show up as income? (or do I just makes notes so CPA knows)

@Hai Loc Thanks Hai, much appreciated. This is super helpful. I'll keep ya posted. 

@Scott Wolf Thanks for the response, makes sense!

@Anthony Wick VERY helpful! This sounds like the arrangement my partners and I are thinking about. 

@Ola Dantis I love this! Thank you.

@Moustafa Adel I like it.  Now, any suggestions of what that "bit more" should be? I have never partnered before so I don't know what to value my hands on role. It will be a conversation with my partners, clearly, but I want to have an idea what I could ask for and then go from there. To keep it simiple, lets just assume they would be 100% passive investors. (We are BRRRRing and keeping them as LTR). Thoughts?

@Joe Villeneuve Thanks for that, I need to keep that in mind!