All Forum Posts by: Mitch Messer

Why not go straight to DSCR? Duplex is already rented on both sides with long term tenants. Would you avoid conventional all together?

Purchased a rental property approximately 3 years ago out of nowhere with no experience what so ever. I did a cash out refi on my primary residence and paid all cash. Original purchase price was $135k and put $10k to bring it to date. Home is now valued at approximately $375k. Fast foward to today, I want to start investing more. I found a duplex for $359k that checks all the boxes for me. Just wondering what are some of the ways you would structure this next purchase. Also I have not formed an LLC, but not opposed to creating one either.

Hello,

I'm trying to determine the right monthly rate for an MTR that has 2 beds and 1.5 baths. I know it's location dependent, and also dependent on how much LTR and STR rates are.

But i have a potential insurance claim.  And they asked me how much i want to charge.  I don't want to over charge, but I also don't want to under charge.  Can i throw out a high number and then let the insurance company tell me that is too much $$?

Hi all! I'm actively seeking funding to acquire a cash-flowing dry cleaning drop-off business near Kennesaw State University in Georgia. The business is clean-no debt, no production, streamlined-and the seller is offering full training.

This is a purchase I'm making alongside my daughter, and we'll be overseeing operations with the help of a local hire. The plan is tight, the numbers are proven, and I have:

*A fully detailed business plan with projections and operational strategy

*2 years of verified monthly sales data

*All financial docs accessible through the seller

Looking to connect with lenders familiar with non-SBA deal structures. Please reach out if you fund straightforward service-based business acquisitions!

Thanks in advance,

--Stephanie

 I plan on being there.

Tenant is smoking weed in our townhome. It's legal in our state.  The lease clearly states that smoking is prohibited.  Neighbor who shares a wall is complaining to us and has asked the tenant not to smoke in the unit.  There is no carpet in the unit, so it probably won't hold onto the smell, plus weed smell doesn't linger like cigarette smoke does... do we let it go, or play hardball and enforce the lease and risk a lengthy and expensive eviction?

Scott Horne is the best, Are you in Beaumont, Tx ? So am I, lets connect 954 734 3330

I have an opportunity to purchase a portfolio of 28 homes in central Georgia.  There are several that I would divest from the start so my total portfolio would be around 22 fairly well maintained homes with maintenance records on the big systems.  It's generally a portfolio of "base hits" (rent is 1.3% of a $2M purchase price across the portfolio).  Assuming you have the ability to operate the portfolio, would you pursue this deal?  What concerns would you have?  

Note: Cash flow after 10% maintenance withold, 10% vacancy withold, mortgage (PITI), and 4% for a VA and electonic property management systems would be about $2000 /month for my business partner and me to reinvest or pay ourselves.

@Mitch Messer Yes, a husband and wife with separate checkbook-controlled Self-Directed IRAs (SDIRAs) can jointly lend on the same real estate deal, but it must be structured correctly to avoid prohibited transactions and adverse tax consequences.

• IRS Rules: As disqualified persons to each other, spouses must ensure neither gains personal benefit. The loan must strictly benefit their IRAs—not themselves individually—and funds must be sourced and repaid directly to each IRA.
• Structuring the Loan: The cleanest and most IRS-compliant method is to use a single promissory note and deed of trust that lists both IRAs as co-lenders, each contributing their 50% share. Payments are then split proportionally and deposited directly into each IRA.
• Tax Implications: Income earned (interest) is tax-deferred or tax-free depending on whether the SDIRA is traditional or Roth. If structured improperly (e.g., personal guarantees or commingling funds), the IRS could consider the loan a prohibited transaction, disqualify the IRA, and trigger full taxation plus penalties on the IRA's entire value.
• Entity Alternative: Another approach is forming an IRA-owned LLC—each spouse's IRA owns 50%. The LLC can then issue the loan. However, this adds complexity and must be set up by a professional to ensure tax and ERISA compliance.

This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.