All Forum Posts by: Matt Hendrickson

@Nicholas Aiola thanks for all the time spent and advice given in this thread.

I have a quick question for you. My wife and I recently purchased (January 2020) a home with a partner in an LLC with 50-50 ownership. Our partner provided all the capital for the acquisition and rehab while we provided all the labor/found the property. As we were nearing the completion of the rehab my wife and I were looking to move into a home. After realizing how fast homes were moving in the price range we were looking in, we decided to move-in to the home we were rehabing.

My question is, what would you recommend we do as we are now renting from an LLC where we have 50/50 ownership. Could this be determined personal use and now we're not able to write off everything? We are only paying rent to our partner on the portion that is their's and not paying ours at all. Is this a problem?

Should we quitclaim the property into our personal name?

Any advice you have would be much appreciated!

I have a few rentals in college towns. As everyone knows, colleges have been closed due to COVID19. I have college tenants who are wanting out of their contract due to counting the Coronavirus as an “act of God” (there is a clause in my contract that contains Force Majeure). He is now unemployed and can’t pay rent (or so he claims). Does the Coronavirus count as an “act of God?”

Would love any advice.

Thanks!

I'd give @Matt Moylan a call. He's licensed in all 50 states & could give you a competitive quote at the very least.

@Nicholas Aiola As the year ends, I'm beginning to get my ducks in a row to file my taxes. One question I have is in regards to if I need to send a 1099-MISC forms to contractors above the $600 threshold. If I do need to, to whom am I required to send them?

I work full-time but have also completed a flip, acquired a BRRR, and a 5-plex this year. I'm guessing this will be viewed as a business by the IRS? I've been very involved in the rehabs and rentals of these properties. Does that mean I need to send a 1099-MISC to the Roofer, Plumber, HVAC, and all other labor above $600? I saw mention of not needing to do a 1099-misc if I've paid with a credit card. Is that correct?

Any advice you have would be much appreciated!

Thanks!

Fellow BPers,

I've reached out to a few resources/people already, but thought it would be interesting to see what BP has to say. I'm under contract for a 5-plex in Independence, MO (near Kansas City). This 5-plex will need some substantial rehab but I'm hoping that my post rehab appraisal will be roughly $50,000/unit. I'm curious, am I off here? Rents are in the $650-$700 range and the building was constructed as an actual 5-plex (no jenky retro-fit). Any appraisers,brokers, or anyone have their own project in this area that have any thoughts & could support my thinking?

Thanks in advance!

I just came across this thread and really appreciate all the advice given. Thanks again for all the time you've put in.

Quick question for you, @Nicholas Aiola. Earlier this year, I completed a flip with partners in an LLC. Partner A (me) & B were 45% owners with Partner C being 10%. Since that flip, I have completed a BRRR & have a 5-plex under contract as a sole proprietor. The 5-Plex will need nearly $85,000 in rehab. The BRRR & 5-Plex will be long term rental holds. I, personally, have performed/managed the work on all three of these projects.

I'm interested in purchasing a dump trailer to mitigate my dumpster costs on each project. I'm wondering how might I write this purchase off ($8,000 purchase) to mitigate my gains on the LLC - even though I may not purchase the trailer in that LLC and will use it for sole proprietary work. Is that even possible? If not, how should I write the trailer off for my business endeavors as a sole-proprietor. I also work full-time and do flipping, holding, and other real estate activities on the side.

Not sure if this all makes sense, but I'm having a hard time wrapping my head around how to write this off even though the activities of the LLC have finished.

Thanks in advance!

In the FHA guidance issued in 2013 in regards to this issue it states a landlord can deny an emotional support animal if the accommodation "would fundamentally alter the nature of the housing provider's services." I'd be interested in hearing other's opinion, but in my case - since I have multiple tenants living under the same roof who have signed leases under the assumption there would be no animals and could possibly have allergies and other health issues to animals - that accommodating a service animal does change the nature of my services. Currently, the tenants who have signed leases for the upcoming school year have signed leases under the assumption there are no animals. They have no idea an animal now could be there and now may have allergy issues or other health concerns that they never felt they needed to mention. As @Kevin Blanchard stated, this could also affect my “service” down the road as other tenants that sign leases in the future could have allergy sensitivities or other animal related issues. Never mind the fact that the animal could bite another tenant and if it is not immunized could cause bigger problems. 

Am I wrong here?

@David Fairall that’s sound advice. My property is actually located in Utah. Would you mind sharing the info you have?

@Anthony Rosa an English Pit-bull. I’m not much of a dog person - could that be a breed my insurance wouldn’t allow? I haven’t quite called them yet.

Thanks for all the help!

@Kevin Blanchard This is super helpful. I assume after you had the discussion with the lawyer there were no other push backs?

Thanks @Russell Brazil. So, in this instance I can follow the definition of FHA and ignore ADA. So, I can ask for doctors note, immunization records, ensure the animal performs a function the tenant can't do on their own, professional training, etc? Is there anything else I can or can't ask or require? Any other ideas?