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All Forum Posts by: Kirsten C.

Kirsten C. has started 1 posts and replied 9 times.

Post: Zillow and their "zestimates"

Kirsten C.
Pro Member
Posted
  • Rental Property Investor
  • Rapid City
  • Posts 9
  • Votes 2

@Kai Kopsch

And adjust for odd features, like extra large lot, or a shop building, or a special location.

They compare the house to house and don’t account much for lot size unless it is a substantial acreage.

Post: Potential 'Squatter' with property that can't be moved

Kirsten C.
Pro Member
Posted
  • Rental Property Investor
  • Rapid City
  • Posts 9
  • Votes 2

It simply states in the Walk through inspection: 'All personal property, including refuse, not included in the purchase price shall be removed by the Seller prior to closing. I don't see any mention of leases or potential leases in the PSA. I also do not think any lease was signed with the current owner and the business buyer. They are arranging a meeting between us and our real estate team and the seller. I have not contacted an attorney yet. 

Post: Potential 'Squatter' with property that can't be moved

Kirsten C.
Pro Member
Posted
  • Rental Property Investor
  • Rapid City
  • Posts 9
  • Votes 2

We have only owned duplexes up until now. We are in the process of buying a large commercial building that we plan to section into 3 units and rent 1 unit to our s-corp contracting business. The other 2 units will be leased.  We had the option of 'taking' the dying ceramic business, but declined. The owner warned us that the 2 giant kilns were placed in the building by crane 60 years ago and could only be removed by cutting apart so if someone bought the business they could not take the kilns.

Now,10 days prior to closing, he has informed us that he sold the ceramics business to someone including the kilns and the thousands of molds etc that are occupying nearly all of the 12,000 sq feet and that the buyer would like to occupy 1 of the units to include the area with the kilns. This was presented to us a week ago with some questions as to how much rent would be for the space and the kilns etc. We said we would consider it, but had concerns about insuring the old kilns and that the current occupied space would need to be reduced to the approximately 1/3 of the building that they could afford. Now he said he sold him everything including the kilns and warned us to not be too lenient with the potential tenant on timeframes, because he "takes his time " and is currently not responding to phone calls or condensing any of the molds and stuff that is spread out everywhere.  The current owner now says he can't move the stuff because someone else owns it.

My realtor advised that he made moving the kilns his problem now, or I could lease the property to the buyer but I can't do background checks etc on the tenant until I own the property. I'm starting to be concerned that I am buying a building with potentially what amounts to a mega squatter with kilns that cannot be moved.

I guess it's possible that he has a better offer from the business buyer and he is trying to scare us out of the deal, but what are my options here? I'm not liking the risk of the potential non-performing tenant. If we just say no, the building needs to be empty upon closing, the closing will definitely be delayed further and we need these winter months to make the changes we need to occupy, carry out city requirements, etc. before our summer contracting business ramps up. 

Post: Can I buy mixed use and rent to my own business?

Kirsten C.
Pro Member
Posted
  • Rental Property Investor
  • Rapid City
  • Posts 9
  • Votes 2

First, If you have not incorporated your flipping business, you need to look into that immediately. Becoming an S-corp will save you thousands of dollars in self employment tax. I highly recommend 'The Tax and Legal Playbook' by Mark Kohler. (no affiliation)  If saving taxes is your goal, that will be huge, but its also a very good investment to own the property and rent it to yourself and others. This is usually done as an investment on the personal side, while your business (preferably an S-corp) pays rent to you. Your tenants also pay rent to you, not your business. This is income is then reported on the K-1 as a long term investment.

Post: South Dakota Vacation Rentals

Kirsten C.
Pro Member
Posted
  • Rental Property Investor
  • Rapid City
  • Posts 9
  • Votes 2

@Brady Aman

I think it’s hard to find people to clean them. Maybe I just didn’t know where to look but I didn’t get any answers to my request for a shared hosting on Airbnb. The cleaning companies that I called said they couldn’t take on more than one or two because they were always needing to be cleaned at the same time or something, or they just didn’t do them at all. The people I know who have vacation rentals, clean them themselves unless they own a campground or resort.

Post: The Los Angeles Nightmare

Kirsten C.
Pro Member
Posted
  • Rental Property Investor
  • Rapid City
  • Posts 9
  • Votes 2

@Bryan Beal

That’s exactly what I was wondering. Investors had to see this coming with all the liberal policies in California and I’m sure other places too. Like Michigan! I don’t understand why the people of California have not gotten rid of Nancy Pelosi!

Post: Out of State Buy and Hold Investing in Rapid City

Kirsten C.
Pro Member
Posted
  • Rental Property Investor
  • Rapid City
  • Posts 9
  • Votes 2

The market in Rapid City and the surrounding area is sky high right now. There is far more demand than supply and people from California and other states keep moving here and they are snatching up the houses as soon as they hit the market. You can not make a good ROI here unless you find a wholesaler and I have yet to find one.

Post: Looking to make second purchase

Kirsten C.
Pro Member
Posted
  • Rental Property Investor
  • Rapid City
  • Posts 9
  • Votes 2
Most likely a HELOC will be easier and the simple interest on it vs the compound interest in a traditional mortgage its much better.

Post: Rental Property Analysis

Kirsten C.
Pro Member
Posted
  • Rental Property Investor
  • Rapid City
  • Posts 9
  • Votes 2

Hello, i am new to Bigger Pockets Pro. I seem to be having the same problem in my market. Even the lowest priced deals I have found don't work. A foreclosure that caught fire after listing it, finally sold for 76K but was listed at 99Kthen reduced to 88K. It already had foundation issues and needed a roof and new siding and windows and of course interior updating. It, at the very least, needs a top level total gut; the fire happened in the kitchen but smoke and water damage were in every room of the top floor of this split level. An estimate of final value is approximately 150-170K based on the neighborhood.  Another one is listed for 73K and is in the condition and location of properties that I think most flippers or brrrr would say they would have 50K all in: rehab plus purchase. I just don't see how they can do it. That is why I am now directing my education toward wholesaling. And am going to read J Scott's book on Flipping Houses. I must be missing something or I need to look in another market.