All Forum Posts by: Luke Sass

@Ray Rodarte

If your open to moving I to the second property why not use FHA to get Into a property? Maybe house hack a duplex or even a 4 plex?

Or you could Refi your first property and take advantage of the lower rates to pull some equity out of the property?

You can get a HELOC for an investment property just depends on your bank.

Best of Luck

Luke

@David Pike

There’s a lot to unpack here, I think your first question is are you a dealer or an investor?

The burden of proof is on you and there is some very specific criteria to meet if you hope to classify it as an investment. See the article below for some info

https://rsmus.com/what-we-do/services/tax/the-dilemma-of-dealer-or-investor-classification-for-real-estate.html

-If you feel meet the investor designation the next trigger is how long you hold the property, if it’s less than a year you will be subject to short term capital gains, if more than one year it will be long term Capital gains.

-not sure it even has to be rented to be considered an investment, who says you can’t hold the property and wait for it to appreciate.

-As far as a cost segregation ( to do them right and have to proper engineering done is very expensive depending on your potential tax burden it might pay off?)

-be aware that when you sell the property your going to be subject to depreciation recapture (pay taxes on the depreciation you accelerated), that can be mitigated by doing a 1031 into another property.

All of this is doable just needs to done right, you should talk to a CPA with experience in real estate to ensure you don’t miss any steps

@BJ Min

Large multi family no question, spread it out between 3-5 deals as an LP and take monthly distributions and wait for appreciation to juice your return. Look up @Omar Khan boardwalk wealth

@Jay B.

I saw what I thought was a great idea on another thread that dealt with the current moratorium on evictions. Not sure if that’s the case in Illinois but the property owner had his PM schedule 2 inspections a day until the tenants decided to pay rent or move. It might be considered harassment but I would take the chance given that you’ve gotten no communication from them. Your PM should be taking care of the issue for you, why is there still tenants in the unit if they are 3 months behind

Best of luck

Luke

@Tiffani Trentham

Tiffani, R15 is referring to the max dwelling units per acre. If the land has been subdivided already the owner most likely already took the land they the planning process. The only thing you need to worry about your setbacks on the specific lot that your purchase as well as any covenants if there is an HOA. You should be able to build a house not any of the lots assuming their are legal platted lots.

-you can look up the property on your local GIS county map and it should give your information (parcel id’s) for each specific lot.

-google your local Title 10 development code and see what sort of uses are allowed under R-15 I think you will be pleased.

Best of luck

Luke

@Manuel Prado

I would get copies of the current leases and rent rolls to look for some sort of stable rental history. Careful using %’s if it’s in a low rent area you knight underestimate your repair costs.

Best of luck

Luke

@Pancham G.

That bill is dead on arrival but I agree that’s a fair solution as long as the senators that vote for it are willing to forgo their income for a year as well, while paying all their expenses. Everyone should write their senators

Best of luck

Luke

@Brian Stutzman

Brian I love the innovative idea way to attach the problem using a creative solution

Best of luck

Luke

@Michael Ulrich

You need an estoppel agreement at the bare minimum but I would offer them the option of either signing a lease or giving them 30 day notice. Odds are if the have lived there that long the rents are low and the place will have some deferred maintenance needs. Something to consider when replacing the tenants.

Thanks

Luke

@Daniel Riley

Yes I’ve seen PM’s tackle this a variety of ways. One company charges 10% of gross rent, with a 50% releasing fee but doesn’t charge anything for service calls or maintenance.

Another charges 5% gross rent with no releasing fee but charges by the hour for repairs and maintenance so they end up Nickle & Diming you to death.

I think one months rent is too steep. You can do better.

Best of luck

Luke