All Forum Posts by: Karl Kauper

I’m having a really hard time also. I’m in Euclid, a Cleveland suburb. Any suggestions would be greatly appreciated!

Hi All - When selling a property with the intention of immediately buying another building via a 1031 exchange, can anyone recommend strategies for removing or at least lessening the risk of running out of time to meet the 1031 deadlines? Is there any way to basically “lock in” the target building, or is there always going to be a risk that you won’t be able to find the right building within the 1031 timeframe? I’ve done one successfully in the past, so I’m not a complete novice regarding the topic, but that one experience doesn’t make me any less worried about the possibility of running out of time. The time before I think I found a suitable replacement building purely by luck. Thanks for any insights! - Karl

Which is the best, relatively safe Philly neighborhood for finding a potentially cash-flowing small MF (3 to 4 units)? Can't be more than four units because I will be purchasing via a VA loan. (I know I will need to live in it for at least a year, which won't be a problem since I work fairly close to Philly (Princeton)). Thanks!

Also, can having CMHA tenants decrease the value of a property in any way? I’m thinking in terms of potential buyers passing on a property because they don’t want to deal with CMHA-related headaches? Not that I am interested in selling now.

What does the CMHA “payment standard” mean? It’s significantly higher than my highest current rent (2-bd/1-bth, Euclid, OH).  Does it mean that I could expect higher rents through CMHA tenants? In short, I’ve never rented to CMHA tenants, and I’m trying to understand the pros/cons. It sounds like it could result in some additional headaches and even lost rent during the inspection process, so it probably wouldn’t make sense for me unless there is an upside in terms of higher rent. I know that the rent is guaranteed, but that isn’t enough for me probably since I haven’t had very many issues with nonpayment of rent. Thank you for any insight! - Karl

Can anyone advise how easy/difficult it is to successfully dispute a property tax assessment in Euclid, OH? My 2022 taxes were $32k. The building right next door to mine pays $25k even though it is very similar in style and condition but far larger in every way (twice as many units as mine, almost twice the land acreage and building square footage). I purchased my building in 2021 for more then $300k less than the other building sold for in 2016. I've looked at the tax records of a few other "comps" in Euclid, and they all are paying significantly less in taxes relative to their building/lot size and number of units, etc. A 16-unit not far from mine (same town/county) with more square footage and a bigger lot size pays $19k. By comparison to every comp I look at, my taxes seem ludicrously high. Thank you for any insight you can give! - Karl

My accountant stated, “The losses incurred on the rental properties cannot be taken and will be carried forward as your income exceeds $150k, thus no losses can be taken against your ordinary W2 income.”

I was really surprised by this. My wife and I had significant net losses on our Ohio property (mainly because of renovations) and a DE vacation rental, so I expected that these losses would help to offset some of our W2 income with respect to taxes (my wife and I both live and work in NJ). We own the Ohio property via an LLC and we own the DE property in our personal names (in case relevant). My accountant says No — the losses have to be carried forward. Is this accurate? I thought a major benefit of RE ownership is that any losses can offset other taxable income??

I own a 12-unit, 3-story brick MF in Euclid, OH. I am paying the water bills because the units are not individually metered for water. I believe that to install conventional water meters would be cost-prohibitive, but I just decided to send this post in case anyone has any creative solutions that would help me save on water bills? I don't mean low-flow solutions (which I've already implemented) or raising rents. Rather, is there, for example, a way to track tenant water consumption without replacing the entire plumbing system throughout the building so that meters can be installed? Thank you for any insights/suggestions! - Karl

I own a 12-unit in Euclid, OH. I live in NJ, so I currently have a local PM. However, I am looking for ways to cut costs, so I am considering attempting to manage the property myself. I previously managed 5 units myself, but they were all very local. I'm sure that managing 12 units from 500 miles away would be difficult, but would it be doable? Anyone ever attempted anything similar? Thank you for your insights! - Karl