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All Forum Posts by: Matt Moldenhauer

Matt Moldenhauer has started 13 posts and replied 88 times.

Post: Beginning Investor: Can someone give me a list of banks to use

Matt MoldenhauerPosted
  • Investor
  • Springfield, MO
  • Posts 88
  • Votes 29

I would look into your local banks as opposed to the bigger ones. 

Post: Renal property

Matt MoldenhauerPosted
  • Investor
  • Springfield, MO
  • Posts 88
  • Votes 29

I look for a Cash on Cash Return of at least 20%, as well as a minimum of $250/month cash flow. If a unit meets that, I then take many other things into consideration. 

I'm going to have to go with @Eddie T. here. I own one, closing on another right now and will have two more within the year. I can see a lot of people on here being in a period of growth and only having one or two. I wouldn't think someone would join the community and learn for just one or two though. I could be wrong. 

Excuse my ignorance @Nathan Gesner, I thought all landlords were subject to Fair Housing Laws? Or is that only when dealing with section 8?

Easy there @Account Closed, those aren't my words. That's the article from Investors.com. I copied and pasted the story just in case someone didn't feel comfortable following the link. 

I wasn't trying to start a political debate here. I asked what I thought was a legitimate question. After reading a little more on the subject it seems like a landlord cannot disqualify a possible tenant based solely on them being a convicted felon, without first taking a closer look. Which I think is an extremely slippery slope. 

How is everyone else planning on handling this?

http://www.investors.com/politics/editorials/hud-t...

The Obama administration has just made it easier for felons to move in next door. Landlords who don’t want tenants who are going to mug their neighbors or deal drugs will now be treated as racists and potentially sued.

Last week, the Department of Housing and Urban Development issued new guidelines to landlords, warning that bans against renters with criminal convictions violate the Fair Housing Act because they disproportionately affect minorities.

In effect, the Obama regime is now outlawing criminal background checks for apartment rentals, even though such screening is critical for the protection and security of tenants and property, and serves a legitimate business need.

In a newly released 10-page missive, HUD warns landlords they can be held liable for discrimination if they deny housing over criminal records.

"HUD will use the full force of the law to protect the fair housing rights of folks who've been arrested or who're returning to their communities after serving time in jail or prison," HUD Secretary Julian Castro warned.

By "full force," he means the "disparate impact" theory of civil-rights enforcement, which HUD claims is written into the Fair Housing Act even though the phrase appears nowhere in the statute.

Disparate impact holds businesses liable for colorblind policies and practices that may have adverse outcomes for minorities — in this case, screening all apartment applicants for criminal histories. It doesn’t matter if there is zero intent to discriminate in carrying out such polices. The policies will be condemned as racist regardless.

"The ‘disparate impact' standard is one of the most powerful tools we have to stamp out discrimination," Castro said. "And I want you to know that HUD will not be shy about using it."

Even if applied evenly and neutrally across all races, HUD claims that screening policies have a discriminatory disparate impact on African-Americans who "are arrested at a rate more than double their proportion of the general population." In other words, it asserts, landlords could be breaking the law when they refuse to rent to black ex-cons with long rap sheets — even if they have no intention of discriminating — because such a policy would likely have a disproportionate impact on them.

So now landlords, real estate agents and property managers will think twice before turning away drug dealers and thieves, even rapists, who are members of this “protected class” — even though barring high-risk tenants serves a legitimate, nondiscriminatory purpose.

This puts landlords in a terrible legal bind.

To protect themselves from federal action, they would be wise to avoid even inquiring about the criminal records of prospective tenants. But if they fail to adequately screen them and rent to one who robs or hurts a neighbor, they could be sued by the victim for negligence.

No doubt many will see no option but to raise rents to indirectly exclude criminals from their rentals, which will just end up hurting everybody who rents housing — including innocent, law-abiding tenants.

Obama's new rule makes it easier for HUD to resettle urban minorities into affordable housing in the suburbs, as part of a controversial regulation it finalized last year — Affirmatively Furthering Fair Housing — which threatens to cut off funding to local municipalities that refuse to lift zoning restrictions on low-income housing.

The federal mandate — whose goal is racially balancing the nation, ZIP code by ZIP code — also threatens to import violent crime into the suburbs, while lowering property values and negatively impacting local schools.

As kitchen table issues go, these are major developments. Disappointingly, none of the presidential candidates is talking about them.

Post: Rental property mileage expenses

Matt MoldenhauerPosted
  • Investor
  • Springfield, MO
  • Posts 88
  • Votes 29

Bump. I have the same question. On my spreadsheet that I use to track monthly expenses, I have the round trip miles to various places I would go from the rental unit like home, Home Depot, Lowes, Walmart, etc. When I'm home and have to make a trip to the rental for whatever reason, that's three miles. Can I log this and expense the three miles at .55/mile come tax time?

Post: Rental Property Receipts, Tracking Expenses & CPA's

Matt MoldenhauerPosted
  • Investor
  • Springfield, MO
  • Posts 88
  • Votes 29

@Andreas W.

Here you go. Just click on the excel link.

http://www.fastbusinessplans.com/business-template...

I'd be interested to know what other people think of the little program.

Post: Rental Property Receipts, Tracking Expenses & CPA's

Matt MoldenhauerPosted
  • Investor
  • Springfield, MO
  • Posts 88
  • Votes 29

Woah @Dave Toelkes, that just flew right over my head. Actually last year was our "first year". My wife spoke to her last year about it, but she said we had a couple of years to decide if we wanted to stick with, so we didn't claim it for 2014. 2015 was the first year we filed on her old primary house(our new rental). We are/did depreciate the structure. I don't recall her saying asking anything about appliances though. Maybe she just made assumptions? I also do not recall any mention of a HUD-1 Settlement Statement. From a quick Google search i'm not sure how that would have applied to us though? We didn't take out a loan or refinance anything? The existing loan on the house is an FHA from 2010.

This is one of my biggest fears when dealing with tax professionals, lenders and realtors. I feel like i'm always the one leading the conversation, when in reality i'm the ignorant one. I try to do as much research as i can, but it feels like I sometimes have to pull the information out of them. I try to be very clear and precise in what i'm looking for and what my goals are and just when I think I have my answers I'll ask something else that they should have answered with the information I had already given them. If scares me to death to know what i'm not being told because I didn't know to ask...

Post: Rental Property Receipts, Tracking Expenses & CPA's

Matt MoldenhauerPosted
  • Investor
  • Springfield, MO
  • Posts 88
  • Votes 29

Thanks for all of the advice. Yesterday I downloaded a spreadsheet that has all twelve months and keeps a ledger on all income and expenses. It seems easy enough to use, even though I know I'm not 100% accurate lol.