All Forum Posts by: Kole Kingslien

Thanks for all the advice guys!

Hi all,

I am posting on here because I have an opportunity to purchase a couple of rental properties, by method of Land Contract. I have never done this before, and had some questions about the implications of a land contract, and was hoping that someone on here may some knowledge on the subject. 

Some of my questions are:

• Am I exposed to any greater risk in a Land Contract, apposed to the seller holding a Mortgage? The thing that concerns me about a Land Contract, is that the seller retains the Title, until the property is paid off. I don't know what this exposes me to, and I certainly to want to make it easier for me to get screwed over in some way.

• If I buy via Land Contract, what will the tax implications look like? Will I be able to write off any acquisition costs I may have? What about professional fees, expenses, and depreciation?

• Could I refinance out of the contract if I wanted to? Since I do not hold Title, will the bank still let me refinance like normal (something like 80% Loan to VALUE), or would they treat it like a purchase, and require 80% Loan to Cost (requiring me to bring a 20% down payment to the table)? 

Is there anything else that I may not be thinking of? Any thoughts or input on the subject would be very helpful!

Thanks,

Kole

Hi,

I just thought I would post on here to see if anyone is using some kind of online property management software, and what their thoughts are about it?

I have one rental property, and am going to be accumulating more this year in which I want to get a good system in place. For my first property, I set up a Cozy account. I mostly liked it, until I collected my first rental payment, and realized that it was going to take 5 days before it will post to my account (even if I paid for the express payout service, it would still take 3 days to post!). The reason I don't like this, is that if a payment does not go through because of insufficient funds, I won't know until day 5; So I will be 5 days behind at giving my late notice, and if they submit another payment, I won't know for another 5 days. 

Does anyone have any other software they like, that perhaps may have a solution to this problem? I have been interested in Appfolio also, so if anyone has used any services like this, I would be interested to hear some thoughts on them! 

Thanks for the input!

Kole 

Thanks everyone! Truly helpful advice!!!! 

@Chad Nagel, 

That is great advice! This is our first rental, and I hope to manage them until we get to about 20-30. I really want to get to understand every part of the business as I scale upward, doing everything myself, until I am comfortable with my understanding of the details and how it works, and then eventually outsourcing it. 

Hi everyone,

I have a few questions about moving in a tenant. I have my first tenant moving in tomorrow, and have compiled a folder of documents to take with to the lease signing, and was wondering if you guys had any advice about things I may be missing?

So far, this is what the folder contains:

• Lease Agreement
• Lead Based Paint Disclosure
• Lead Paint Pamphlet 
• Move In/Move Out Checklist
• Renters Insurance Disclosure
• Security Deposit and First Months Rent Receipt 
• Non Standard Rental Provisions 
• Itemized List of Common Security Deposit Deductions with General Prices
• Getting your Deposit Back Information Sheet with Cleaning Instruction upon Move Out
• Forwarding Address form (For getting their deposit back)

Also, do the Tenants fill in the Move In checklist by their-selves , and do I fill in the Move Out list by myself? What is the verbiage used in the "condition" section? 

Do I need to define the late fee in the Non Standard Rental Provisions form? What else should I put in this form?

Are their any other documents or information that I may have forgot, or may want to include? 

I know I am probably overthinking this, but I would like to be as organized and prepared as possible, so that going forward I can plug new properties and Tenants into a efficient and effective system.

Also I am in the Beloit Wisconsin area. Any advice is always appreciated! 

Thanks again,

Kole

@Basit Siddiqi @Yonah Weiss, Thanks for the advice! 

@Scott Pateros, Awesome! it's great to keep seeing other like minded investors popping up in my area who are also on BP! Do you own any properties in the area?

Thanks for the info everyone, this was all super helpful!

Thanks for the advice @Basit Siddiqi! I just have a bunch of basic novice questions about getting set up, bank accounts, bookkeeping and so on. 

@Yonah Weiss, Thanks for the referral! I believe he came to one of the meeting at the investment group I'm in, so I will definitely look into him! I see you are from New Jersey, do CPA's need to be state specific?