All Forum Posts by: Michael Clemson

Thanks, @Linda Weygant! I was aware of the personal exemption (7.5% raised to 10% post-ACA) but knew I wouldn't meet that threshold. I'll look into Section 105 reimbursement plans, but likely will just try to forget this ever happened.

I hit my head at my own rental this weekend, lacerating my head and taking a trip to the Emergency Room. I'm the proud owner of a few staples now! (No Urgency Care in the area on weekends.) I'll at least have a co-pay and perhaps more to pay. Is my actual out-of-pocket expense tax-deductible since it was incurred while at the rental property on rental business? The dollars I am using to pay the co-pay and any coinsurance are after-tax dollars, not part of an FSA/HSA.

@Arlan Potter, good call moving to a $/day late fee instead of $/week. It gets the person to think in terms of "days" instead of "weeks."

If you have great credit and a down payment, why don't you qualify for a traditional mortgage?

In that case, I'd sell it. It doesn't cover your risk. Even a month of vacancy and you're losing money.

I'd make sure your lease covers this situation, but then I would also take care of it as a one-time courtesy for the tenant, especially if they pay on time and are good to you.

I'd also consider whether you can do anything to prevent this from happening in the future. For example, in my personal residence's upstairs bathroom, I know I have to remove the drain cover and clean it out with pliers every 3 months. If I had a tenant who called me about the slow-draining tub, I would pay to fix it and then change out the drain style to something less likely to clog, such as something with a grate cover.

I'd also keep in mind that hair going down the drain in a shower or tub is normal. If it's indeed hair plugging the drain, and not a toy/hygiene/diaper item, it's really up to the landlord to improve the configuration to prevent this. Alternatively, if it's something the tenant can fix themselves (like I have to do at my property), you could train them in on the procedure.

Tell the agent you don't have any money, and see if they are still willing to show you a property. (I personally wouldn't bother after the 2nd or 3rd property once it became clear you are not in a position to buy. But I'm not a realtor.) Why not go after open houses instead? What are you hoping to see in a tour of the home that you can't see in pictures online?

In Minnesota, it's not required to disclosure hauntings, deaths, etc.

Rao, you should not pay him $30 as an independent and also as an employee. As an employee, you'd pay part of his taxes, he would have a stable job, more hours, possible benefits/labor protection, etc. He may have holidays, paid time off, etc. Perhaps $20/hour would be reasonable in this case.

What are you hoping to gain by making him an employee?

The interesting part is that there's no interest. If I remember my schooling, the present value of those future payments you're making is only $111,682 (assuming 3% interest). I wouldn't mention it to the seller, but you're getting a nice discount there.

However, none of that matters if you're not experiencing a positive cash flow. I'm with Michell -- what do your estimated expenses look like?