All Forum Posts by: Kevin Rowghani

@Jovon Gordon I grew up in the next town over named Downingtown. Taxes are generally high in PA. I would suggest checking neighboring homes to see what their taxes are and see what is the going value relative to your potential deal. I would need more information to assess your deal. Some sections of Coatesville may be rough since it’s an old steel mill town.

@Dillon Hippensteel - I am a local investor. I am in the process or rehabbing a new purchase for rental and looking to acquire another. I could use some help and willing to compensate. Send me a message.

Has anyone experienced Self Directed lenders not providing financing on properties built before the 1940’s and not financing properties less then $75k?

Are you aware of any Self Directed Lenders who don’t have restrictions on age of properties?

@Ashish Acharya - thanks for your insight.

@Christopher Smith - it's a limited partnership whom I am the only limited partner. The General Partner is an LLC.

I am investigating the option to move a rental property from direct ownership to an existing LP. I am the sole owner of both the property and LP. The property is free and clear and was purchased 10 yrs ago. It has also increased in value by 20%; therefore cost basis has reduced and capital gains exist.

I clearly understand I need to pay transfer tax.

My question is if I make this deed transfer do I have to pay capital gains tax when this transfer is made or years later when I sell?

I am going to assume if I do make this transfer, the property will appear in both my Sch E and LP tax forms in the year this is performed.

How will the Balance Sheet reflect the cost basis? Since purchase or values since transfer?

Any guidance would be greatly appreciated.

Kevin

@Anthony Wick

I can’t count the number of times tenants or perspective tenants say they are staying for only 1 year but end up staying much longer. Look at their application, savings and character and you will see if this person can really pull of buying a home etc.

Divorce is very common and happens all the time. Not all divorces get ugly. The ultimate question is can the person afford the property and are you willing to be savvy enough to protect your self if the person defaults? Collecting more up front will protect you.

Any tenant or home owner is always at risk of not paying their landlord or mortgage company. Do the due diligence and buy properties that have strong cash flow and low maintenance.

@Carson Kesner

I have rented to tenants who were divorcing. Here is my advice and some thoughts:

1) could you ask for his child/spousal support Order? This will tell you how much he has to dish out to his kids and Ex. This will tell you his true take home pay. His pay stubs show his gross pay.

2) You can consider him as high risk for reasons in #1 plus his current and upcoming attorney fees. Divorces can be expensive especially if there is a lot of drama.

3) You can collect First Months Rent, Second Months rent, Last Months tent and Double Security Deposit. This will give you a solid position if he defaults on your rent in month 4 or 5. Make sure your lease clearly specifies how these payments are being defined.

It seems he grabbed some money from from a marital account and is trying to pay off somethings. At the end of the day, there will be a discovery and it will be sorted out in the Equitable Distribution Order.

By the way, always be prepared to evict a tenant and make it real clear Security Deposits is not considered as rent and Last Months rent is for the last month they occupy the unit.

Good luck!

Thanks Dave for your comment. Divorce Lawyers know a certain amount of business operation or business valuation but not enough that I would consider them as experts. Is there anyone who is knowledgeable with my questions in the original post?

Hi All I am going through a divorce and need some expertise in terms of income determination for Alimony and Child Support. I live in State of PA. About my situation: I work full time as an employee and I collect a pay check (W2) which essentially pays our living expenses. My wife also works and also is an employee. We have 20 rental properties which a handful were pre-marital. Some of the cash flow does pay for some living expenses but not much. How does net income from rental properties get incorporated into Alimony and Child Support considering the following: Rental income Expenses (excluding depreciation) Depreciation Principle payment (the portion of the monthly mortgage payment) The issue I am having is I have a handful of properties on a 15 yr fixed amortization. How does the monthly mortgage payment and depreciation get handled? I would guess, depreciation gets re-incorporated but the principle does not since it's a monthly obligation that is truly not free money? Would it get handled the same way as dividend reinvestment? Should an average of 5 yrs be looked at since on a yearly basis property turnover changes? For example 2014 was a poor yr due to break downs, vacancy etc as 2016 was great since no major break downs and no vacancy 99% occupancy. How should cap ex and vacancy be argued? Is there any expenses that may be challenged (ex. Cell phone, home office or internet access)? Any help would be greatly appreciated!!! Kevin