All Forum Posts by: Michael Hooper

I have a property in Cincinnati OH that I owned in my name and got a residential loan for in my name. I've owned the property in my name for about a year and I just did a quit claim to transfer the property to my LLC that I created. My question is who pays the mortgage now? Do I pay it out of my LLC's bank account or continue paying out of my personal account. I understand the liability limiting aspect of an LLC is ruined if you "pierce the corporate veil", so I want to make sure to avoid that. The LLC is owned solely by me and is a disregarded entity.

Also, if I need to keep paying it out of my personal account, can I take money out of my LLC to pay it without being double taxed? I thought the disregarded entity portion did that for me, but just wanted to make sure.

@Craig H.  It is boiler heat

@Slocomb Reed

@Slocomb Reed How does RUBS work? Its just one boiler, how do know who used how much?

Does anyone have any numbers from what it cost to heat your buildings in Cincinnati. I've got 2 properties, a quadplex and 14 unit apartment. The quadplex only costs about $65/unit to heat in the winter, but the 14 unit cost about $100/unit to heat in the winter. Both have a heat common area that is proportional to the number of units in the building, so I wouldn't think that would cause a huge difference in cost per unit. If I can find a way to get the cost of my 14 unit down to the cost of the quad I can save about $4K a year, so I'm pretty open to whatever I need to do. I'm just not sure if there's anything that can really be done, or if thats just how much it cost to heat a larger building. Any one got any experience here. Some example billing numbers from your own buildings would be a huge help.

Thanks

All of the tenants are paying their own rent. All of the 11 - 2 bed / 1 bath are the same size and features. There are 3 - 3 bed / 1 bath, but I left those out just to compare apples to apples.

I purchased a 14 unit apartment complex back in December. With it I inherited 13 tenants. 11 of the units are 2 bed 1 bath, same square floor plan and amenities. The tenants I inherited pay any where from $460 to $620 per month ($460, $475, $500, $515, $545...) . I told my property manager that we need to raise the rent on the ones below $500 up to $500, the ones below $550 up to $550, and the ones below $600 up to $600. I wanted to do it straight away on tenants that were month to month and upon renewal for leased tenants. My property manager responded back with, "we have to raise the rent equally on everyone". I don't know if they meant percentage or straight dollar amount, but either way, that didn't feel right. If some is paying market rent, it doesn't seem like I should be forced to raise their rent just to get people below market up to what the market dictates. They said it had to do with Fair Housing Laws. Is anyone aware of any law requiring this? I'm fairly new to this and haven't be through a price increase yet. This will be my first one. Does anyone have citations of any laws proving or disproving this statement. Its in Cincinnati OH if that helps.

I'm closing on a 14 unit apartment in Cincinnati in a couple weeks. I'm still looking for a property manager. I've found one who's terms I like, but as I was reviewing the property I saw a "Special Power of Attorney" clause. I not sure if this is normal, but most of it looked pretty mundane except the last part. 

I don't mind them having the ability to hire people to make "authorized" repairs and what not, but if I'm reading correctly (and I may not be) it looks like they can request, hire, retain and direct an attorney on my behalf without my authorization. So my first question is, is this really necessary? And my second question is, what type of liability does this open me up to with regard to my PM forcing me to spend money?

I'm looking to close on a 14 unit apartment complex in Cincinnati. Currently the estimated close date is December 28. I'm curious, are there any reasons to move the close date back into the New Year. Or, conversely, should I make sure I close this for some reason. The only thing I could think of it would change which year I can deduct my closing costs. Other than that I'm not sure. Just checking to see if anyone else had an opinion. If it helps, I currently own 1 quadplex in my name. I will be spinning up my first LLC for this apartment.

@Tom Gimer @Christopher Phillips Here is the language in the contract. I don't know if this is what you guys are used to or not. 

I actually went through this in Murfreesboro about 4 months ago. The tenants were originally compliant, but then started being uncooperative as we moved closer to putting it on the market. The good news is, I had 2 full price offers before I even had a showing. The weekend we were going to show it, the renters said they'd scheduled a birthday party..... from Friday night to Sunday night.... I ended up paying them $200 to take their kids and their friends to chucky cheeses for 3 hours while we had an open house. I got an offer for 5k above the asking price and accepted it that weekend. So all in all it wasn't bad. I did advertise the house as being rented, but their lease had a clause where we could terminate with 45 days notice. We just offered to transfer the lease to whoever bought it and they could decide what to do.

I'm looking to purchase 10 townhomes in Cincinnati. The current owner paid around 275K for the property and is paying 11K/year in taxes. The numbers on the property were looking good until I was told that if I purchased the property for 495K, taxes would go up to about 21K/year. My realtor suggested doing an entity transfer. I'm not sure on all the details, but it involved me spinning up and LLC, the current owner joining the LLC, putting his property into that LLC, then the current owner signing his share of the LLC over to me. I was told if I did it that way, it wouldn't trigger a reassessment and the taxes would stay the same. Has anyone heard of this, is it legit? Do Incur any liability in the 5 minutes I'm partners with the current owner in an LLC?