All Forum Posts by: Michael LaMorte

I am a part time real estate investor (own a triplex I rent) with a W-2 job. I basically hate everything about my W-2 job except Mentoring employees.

I’d like to go into real estate full time in some capacity and wondering if there is a way I could leverage mentoring/coaching to pivot my career full time into real estate? Thoughts?

Hi John,

I am getting a Ring Camera installed (lesson learned there).  Also I will be changing the door code this week.  The renter was through AirBNB, did about a month, then extended another, and extended another (3 month stay in total).  The person is out and the cleaners went in after the stay was over and found all the things mentioned.

Hi Everyone

Following up on my last entry. My cleaners found proof of Arbitrage (2 IDs left), smoking (marijuana found) and my dish washer is broken.  I am submitting a claim against the individual but should I be worried about retaliation? This person knows where my rental is…

What are your thoughts? 

Thank you all. Thinking along the same lines. She did sign a rental agreement via AirBNB and my property manager. I think I have to ride it out. I am absolutely not going to allow an extension and watch for long rentals in the same vein. Luckily vacation market is picking back up for summer rentals (in NJ) so there isn’t an opportunity to book for a full month. I do plan on documenting any and all damage or expected damage and claiming upon cleaners getting in there.

Appreciate all the feedback. Definitely a lessons learned to increase rate or not allow extensions if arbitrage is expected.

Hi Everyone, 

This is new to me. I have a vacation rental which it’s the off season and I accept rents at a lower rate. I’ve had a tenant through Airbnb which has extended her stay twice (each a month) and has been giving feedback as to how great it’s been.

I come to find out (via a lead paint inspection and going down to check on the property) that she is 100% doing rental arbitrage which was not approved by me. I have seen 4 different sets of people and maintenance team said they saw others to.

My question is now what? I do not have a Ring camera (buying one now) and when I reported it to Airbnb they basically said if I can’t prove it there is nothing they can do.

Any suggestions?

Mike

Hi, 

I have a STR property which is doing well. I used a HELOC for the downpayment and the income right now is covering the HELOC monthly payback and mortgage which is a win/win. I want to continue my journey and start expanding my portfolio but having trouble wrapping my head around how people get the cash for downpayments on the next property. Since my HELOC is not available and cash in the bank is to support my living expenses, etc...unsure the technical everyone uses when expanding their portfolios (quickly) for downpayments and closing costs.

Any recommended resources on mindset or how to convince mortgage companies to accept the "rental math" to cover a deal?

Thanks!

Hello BP community!  I am looking for a real estate lawyer in the South New Jersey area (or can practice in the area) who is familiar with condo conversions, creating master deeds, etc.  I have been struggling finding a lawyer to process what needs to be done so I can convert my Triplex in Brigantine NJ to 3 separate condos.   Your help is welcome!

Thank you all.  I appreciate the feedback.  Looks like I am getting to the stage of obtaining a CPA!

Hi Everyone,

Is there a way to avoid the significant impact of Capital Gains Tax on a quick flip and sell project?  I purchased a Triplex which I will be converting into Condos and selling each unit individually.  I looked into the costs and state (NJ) rules, etc for the condo conversion and am good to go.  I potentially could have a quick 40-50% gain in executing this strategy.  I want to take the windfall and invest it quickly into another investment property in an effort to avoid Capital Gains Tax.  However the only way I know to do this from a tax strategy is a 1031 Exchange.  Since I would only have this property for about 4-6 months I don't think I will qualify for the 1031.

I been looking but am unsure if there is anything else I could do to avoid the gain tax.  Thoughts? 

Thank you in advance!

Hi Everyone, 

I bought a triplex in Brigantine, NJ (Island town right after Atlantic City) with the purpose to STR all three units. My realtor just put in my ear that another option I have is to condo convert all three units then sell them individually for a significant profit. Her projection was a 35-45% of total triplex purchase price. She also made it seem that the triplex was close to being fully "condo converted" (separate utilities and utility accounts).

I have zero experience in this field of condo converting, in researching it doesn't seem too difficult but can't determine the timeline.  If I did move forward with this option, I'd like to do it quickly before setting up STRs and having those systems in place.

Does anyone have experience in this manner or has completed a condo conversion in the past? How long did it take to get all drawings and permits in place / to complete the project?  Let me know!