All Forum Posts by: Michael Cavicchi

So when I purchased my first home (3 family) I inherited a tenant who happens to be section 8.  It's a husband and wife with 3 kids (on the lease).  Last night they informed me that he lost his job. Obviously that sucks for anyone but I guess in this instance at least the rent will now be paid in full going forward with no questions asked.

On top of this, lately I have noticed her 20 something year old daughter around quite a bit and have been having some suspicions about where she is living.  Well last night when I was there I took a look at the boiler and I'm kind of almost certain now that she is living in the basement.  Obviously this is in violation of their section 8 for starters but also it's a basement and I know damn well it's not a legal bedroom.  So other than the obvious of tell them to kick her out or tell them to start packing who is liable here if something happens? What if the fire marshal catches wind of it? Am I going to be fined? If something happens sued?

I mean it's not like I really am in love with them as tenants but I also know it's January and if I get them out now it's probably going to be quite a few months before I can get someone else in there but yeah not exactly pleased with being in this situation.

@Tom S. Thanks for the details! Yes that's what I was talking about just wanted to make sure doing it right and not screwing someone over on their taxes. 

And @Basit Siddiqi thanks! I guess I just wanted to make sure the loan didn't get mistaken as a gift and then someone audited over it in taxes but I guess good record keeping is the answer for that. 

@Tom S. yes that definitely makes sense.  But I mean lets say it's a more substantial amount like 50k.  At that point you're over the gift tax threshold so is the IRS going to want proof that it's a loan and not a gift? 

I was actually about to make a separate post about this. I'm not sure I have an answer but I do know I have questions along similar lines. I know that there can be tax implications for both the lender and receiver. What is the best way to avoid problems with the IRS? To just have the promissory note written, signed and notarized so that it can be handed over to a CPA at the end of each year? Should the check be made out to someone personally or would it be better to be written out to an LLC?

Really looking to avoid putting anyone including me in a bind by borrowing money from them.

@Michael Noto primarily looking for kitchen and bath along with sheetrock (has plaster now). 

Was just looking to see if anyone on here either is or has a recommendation for a contractor in the Manchester CT area.  I just closed on a three family a little more than a week ago with one unit vacant that I'm planning on renovating then living in it for a bit.  Quickly realizing that time is a commodity that I don't have as much as I'd like and looking to hire some of it out. Figured I would see if I could make a connection here before going through who I can find on the internet.

Hey where's my shout out? You can't use the likeness of my photo without giving me a shout out!

As much as I am rooting for businesses in CT I think more casinos is not the answer lol.  Stop proposing casinos CT! The casino monopoly is over!

@Filipe Pereira I have mostly thought about 3 family plus as I would like to do owner occupied at first and do an FHA loan with minimal down. The more units the more likely the mortgage will be paid by the tenants. But obviously I came across this and that opportunity is there I'm just not all that confident the price is right nor do I have a great sense of the student market.

Budget wise I got approved for I think 360k from quicken.  I'm not sure I would really want to use them but it at least gave me an idea.  If I can get minimal down I should be able to move on to a non owner occupied multi family pretty quick.

@Filipe Pereira Yes I know that's what I've been reading about the past few days.  There can be no more than 3 unrelated residents per dwelling and a parking plan must be submitted to the town along with an inspection every 2 years and a 150 dollar fee.  

@Craig Hansen yeah I agree I can see the electric being a very sticky situation.  Right now it is in his name and he divvies it up among the tenants.  I would definitely prefer to not do that at least eventually as I would not want to be that involved for sake of ease. 

And yes I am looking to get into the rental game.  I definitely was not really looking into doing students but this opportunity came along and I figured it would be worth at least looking into it. I'm pretty much open to anything though (perhaps this is part of my problem).