All Forum Posts by: Lyle Cooper

Each wants to pay their have separately.

Is there any legal reason not to agree to this?

My tenants damaged the following:

1. Broken bathroom sink with 4" hole in it.  The sink was cemented to the marble countertop so the repair isn't easy.  Repair cost was 1200.  Replacement cost 1000.  I replaced it.

2. Cabinet below sink was completely rotted out and molded.  Drawer was rotten and had to be cut out. 

3. kitchen sink - there was a leak they never reported.  Entire base of the cabinet is rotted out with mold.  The hardwood flooring below the cabinet is molded as well.  

B/c I had new tenants coming in, I was forced to repair and not replace both damaged cabinets.  But I will have to replace them b/f the next set of tenants.

I feel I should get replacement cost for these cabinets and the sink/countertop.  They were brand new, and now their useful life has been greatly shortened.  I am not going to charge them for labor to replace the cabinets.

How do NYC landlord/tenant laws deal with this issue?

 1. rental activities qualify as a business : How do I determine if the IRS considers me as a business or as a passive investor?

-100% ownership

- I have fairly stable tenants - 2+ years occupancy

- I do all the following myself: lease negotiations,  repairs (hvac repair, sheetrock, painting) trash out, etc.

2. Home office is used exclusively for rental business

3. I use the office for rental business regularly.

I have 2 properties that I rent out.  I report my rental income & expenses on Schedule E.  Can I take the home office deduction?

I have a condo in Manhattan that I rent out.  My R/E agent has been pushing me to sell the property b/c he says the market is hot, rates are low, and demand is high.

They suggested an ask price of 2.7mm.  I rent the place for $10,500/mo, and I net $1700/month after all expenses (including 3k/mo. of principal on my mortgage).  From a cap rate perspective, its a terrible investment.

I bought the place many years ago.  If I were to sell, I'd walk away with 1.3mm after commission, taxes, lawyers, etc.

A little background on me: I don't have a job.  I'm renovating a 3 family building in the area.  I occupy one unit.  I had one tenant but they left during covid.  So the property isn't making me money right now.

If I were to sell I'd incur a decent sized tax bill.  I'd like to 1031 exchange it, but I'm so swamped with my 3-family renovation project.  If I were to 1031 exchange it, it would be for a turnkey investment(s).  The only problem is I doubt the bank will give me a loan, b/c I don't have a regular source of income.  My thought process is wait until the my 3-family building is cash-flowing  and then sell the condo.  At that point, I think the bank will lend me money for a 1031 exchange.

Any advise or suggestions are welcome.  Thanks

I know I can start showing at least 3 months before lease expiration.  I didn't talk to them b/c I didn't want to open the floodgates for requests to reduce the rent.  

I sent my tenants a renewal lease 1 week ago. I haven't heard anything back from them. I'm a little nervous b/c the lease expires mid-June. They've been there for 2 years which includes a renewal in June 2020. I kept the rent the same for that renewal and this renewal.

When should I follow up? And when should I think about listing the property for rent and start showing it?

I received my approval letter for my SBA loan for $60,000 30 day ago.  I have 60 days from approval to accept the loan.  I've been delaying taking the loan in order to time it with a large upcoming business expense.  

SBA contacted me directly and said if I'd like to INCREASE the loan amount, I should do so in writing.  I would like to increase the amount.  Has anyone requested a loan amount increase?  If so what details did you provide?

Thanks!

Applied for 10,000 grant in the beginning of April.  Received 1,000 at the end of April in my bank account.  The 1000 is inline with what SBA sent out as guidance (email) as advance money will be 1000 per employee.  I am the only employee of my business.  

Now I am not sure if SBA has attempted to run my credit to process a LOAN (not grant).  From what I recall, I have locked the credit agencies from having credit pulled on me to prevent credit card fraud.  (Experian, Equifax, TransUnion).

I think I am going to call them to get further guidance.

I have 2 rental properties with mortgages on them. Both are in NYC. One rental property is up for renewal in June (currently occupied) and the other has a tenant who was always behind 1-2 months before COVID-19.  Once NYC got shutdown, I was seriously worried about cashflow and whether my reserves (personal savings) were going to get used up fairly quickly.  I contacted both of my lenders and they both offered me a similar program.  3 months forebearance.  No Principal & Interest payments for the next 3 months.  And the unpaid balance is shifted to the end of the loan.  Effectively creating a small balloon payment at the end of both 30 year loans.  However interest will continue to accrue on both unpaid balances until they are paid.

My question is, 2 years from now will I get dinged when trying to take out a loan for an investment property?  I know COVID-related temporary modifications DO NOT impact your FICO score, but are lenders taking note of COVID- modifications.  A friend who works in mortgage finance, says banks have a new database field for COVID-modifcations.  

When I go to take out a loan and I qualify for say the lowest rate, will banks tack on 25 basis points b/c I took a COVID-modification?