All Forum Posts by: Michael McDevitt

I probably would feel the same way as you do @Russell Brazil, with any other property I rent out, except this one.  This one will be our primary residence in 2-3 years.  So, I don't want any smoking there.  

Yes, @Brad L. - that was my question.  

In Colorado medical marijuana is a joke and anyone can get a medical marijuana card.  BUT, it is "medical" so if I say "no", am I open to a discrimination action?  Sorry if I wasn't clearer in my first post.

This is just my opinion, but I would say a positive impact on rental properties.  Casinos hire many low to moderate wage positions.  Many of those workers will not be in the market to buy a home, but they will be renters!

I couldn't say how the casino would impact the value of your home.

I went to college in the 1980s.  I went to Rutgers University in New Brunswick, NJ, which is an urban area.  The school only had enough student housing for about 50% of the students who wanted housing.  So, a lot of us were forced to rent apartments in the city.  Let's just say the apartments weren't very nice and they were expensive.

Flash to 2014 when my son went to college here in Colorado.  The school had adequate housing for most students and there was a brand new apartment complex, with suites, catering to students at the school.

My point is - before you buy something, check the area and find out if there is too much or too little housing for students.  AND, make sure you increase your repairs allowance - because, you will need it for the reasons @Account Closed cited.

I read a very good book on the subject, called Deals on Wheels by Lonnie Scruggs.  I didn't pursue mobile home investing at the time, because I lived in the northeast and the market there just wasn't profitable enough there. 

I live in Colorado, where both medical & recreational marijuana is legal.  

Today, I just listed my best rental home on Zillow.  It is in an exclusive neighborhood, and is a very nice large home.  In fact, it will be the home my wife and I move to after our youngest finishes H.S. in our current neighborhood.

I got an email from a prospective tenant, asking if I allowed medical marijuana at my property.  It is the first time I have ever been asked that question.  I don't allow smoking in this property, so I simply responded with that answer.  But, it got me to thinking - can a landlord "discriminate" if marijuana is legal?  Has anyone had to deal with this question?

@Tucker Scozzafava, if I remember my business laws classes from long ago in college, If you are under 18, you can't legally sign a contract (or your parents may be able to rescind a contract you sign - I can't recall exactly).  So, I doubt anyone would agree to do a deal with you, unless your parent(s) were the one(s) signing.  Sorry to be the guy telling you that, but you are certainly way ahead of most of us at 16 years old - good luck!

Google that to make sure I recall it correctly.

It sounds like the current owner is either very unorganized or is a liar.  I would assume the latter.  The property still may be worth buying, but I have to agree with @Corey W. & @Kevin Rogers.  Don't believe ANYTHING the seller tells you about the property - verify everything.  And, I would make sure you inspect that property with a GOOD inspector.  I am sure the seller would lie to you about the condition too!  Good luck and be careful!

@Taylor Tindal, I am a CPA and I have to say that @Thomas Franklin's answer was pretty spot on. If you plan to hold the property as a rental, an LLC is the preferred entity. An S-corporation may be the right entity, if you are a flipper.

I would be happy to answer any question you might have, if you want to send me a message.

Michael

I am a CPA in Colorado Springs.  

Is your father in law going to be your partner or is he just loaning you money to do the deal? If you are the sole owner of the LLC, just set up the LLC online yourself and save a ton of money. Setting up an LLC in Colorado is very simple. If you will have more than one owner, spend the money and have an attorney make sure your LLC agreement spells out the deal properly. That is the real reason to use an attorney, not to set the LLC up with Sec. of State, but to draft a good legal agreement between the owners.