All Forum Posts by: Mike O.

We are looking to get opinions/ thoughts on how much you would do for your tenant. 

Here is what is currently going on... Tenant called Thursday letting us know water was spraying from water softener and it flooded kitchen and bathroom. Plumber went to the townhouse and confirmed broken pipe, stopped the leak with a temp fix and tenant cleaned up the standing water. Later in the evening we went over with fans and took photos of the visual damage. Insurance was called the following morning and we had a remediation company there this morning to start work. Starting Monday they will start the demo and additional drying out process. Besides fan noise and needing to move pantry items as of right now they will still be able to have access to the kitchen. It sounds like the floor in the laundry/maintenance room, kitchen, bathroom and closet with be removed, for sure drywall on 2 walls in maintenance room, most likely 1 wall of cabinets and possibly the other half of kitchen cabinets (lower) and then some carpet will need to be pulled up to help dry out. Remediation company said that the tenant will still be able to use kitchen appliances but they might need to move them into the garage. Washer and dryer will need to move to garage as well. Tenant is overwhelmed which is understandable but also seems like she is willing to work with us. I have offered to bring over some empty totes to store kitchen items in her living room but she has declined. She is really worried about her water bill going up because of the amount of water (It was spraying out for about 3 hours) she is also worried about her electric bill going up because of the fans and dehumidifier that was installed today. 

This is all new to us. I don't believe our insurance is going to end up covering all the repairs so this will be a large out of pocket bill for us. At what point does the tenant not stay at the house? Do we have to foot that bill? Do we pay her water and electric bills? this is clearly a stressful time and causes inconvenience for them. Im just not sure how much we should be doing additional for them on top of what we already have. 

Thanks for the responses, so it turns out my wife and I are both on the LLC. Will this make the process easier?

My wife and I own a rental in Minnesota that we are wanting to sell and do a 1031 exchange into a STR in Florida. The problem is the Townhome is in both of our names and the LLC is only in my name. Will we need to jump through hoops for this work? What is the best way to handle this situation? We currently have a STR in Pigeon Forge. Thanks

Thanks for the replies. What is the PF area? 

I currently own 4 LTR in my home town and I am looking to venture into a STR. I have roughly $550k in available cash but probably would only feel comfortable spending $400k of it. At this point the most important thing to me is location which unfortunately is going to cost me $$$$. I should be getting my taxes back this week and at that point will contact my bank to see what kind of loan I will be able to get. It looks like a decent place in Holmes Beach will cost me around 1.2 million which I'm not even sure I will be able to afford, Gatlinburg on the other hand looks to be more affordable. Either way I will be managing long distance and hope to get hooked up with a great cleaning company/handyman. There is also the option to potentially get a smaller property in each area. Im not stuck on either of these locations but my grandparents have a place near Holmes Beach so that area would be ideal and Anna Maria island looks to be out of my price range. Ive also heard great things about Gatlinburg. Any advice would be greatly appreciated. Thanks

How about a real estate CPA in the twin cities?

Thank you both for the recommendations 

Not to get off topic but I have another question. I had 4 rentals in my LLC and refinanced 2 of them in July 2020 but didn't realize I was doing a residential refinance not a commercial refinance so in the end the properties were moved out of my LLC and into mine and my wife's name. Should I get them back into my LLC? pros and cons of just leaving them in my wife's and my name. Thanks

Can someone recommend a real estate lawyer located in the twin cities?  Thanks

Earlier this year I did a cash out refinance on 2 townhomes(both did not have mortgages) and now I have a $500 and a $1000 a month payment. Both townhomes are rentals in my LLC. Are these payments write offs against the money I make on the properties?