All Forum Posts by: John Woodrich

@Justin Woodford I think you should connect with @Tim Swierczek's team to see if there are any options for you. 

@Brad Schaeppi is the best in the area.  I personally use him and many of my clients do as well.  Here is his website, you can directly schedule a consultation there: https://minnesotalandlordlaw.c...

Thanks for the recommendations @Matt Higgins and @Daniel Anshus!

Caleb I replied to your message.

Thanks,

John

@Isaac Bliek I am still practicing as a CPA - just working for my own company now.

@Brad Schaeppi can help you out at https://minnesotalandlordlaw.c... but it wouldn't make sense to reach out if are simply looking for a contract you can copy and use.  An online contract will likely be missing key language pertaining to your situation and you may not have enough protection.

JV can be setup many different ways - a good operating agreement will protect your rights so I wouldn't go cheap on this.

Thanks for the recommendations.  CPAs need to be licensed in the state that we practice but we can practice in any state if that makes (any) sense.  For example I can prepare tax returns in all states however their is no license needed to prepare tax returns.

On the attest side - some states require CPAs to be registered in the state for them to provide attestation services.  The firm I recently left had audit/review clients in other states, some of those states required us to be licensed in their state.  Either way - on the the tax side @Michael Plaks is correct - you do not need someone local.  You are better off working with someone who knows real estate.

Deal #1 - Doesn't sound like it would qualify for an FHA loan... Also - do you think 15 girls would want to live in a sorority with 1 guy in it? Guessing the parents who may be cosigning the leases will have an issue with this...

Deal #2 - Numbers provided look too good to be true especially if it was built in 2001...  If this is in an area you are comfortable living you may have to act fast.

Sounds like you have done quite a bit of research, the first deal is a little more "complicated" from a management standpoint and renting rooms would also provide more complications.  If this is your first investment I would recommend starting out with something a little more basic, you don't have to hit a home run.  And it is OK to "pay rent" while you live there in a house hack.  If your endgame is to leave just make sure all the numbers work with your exit plan.

Thanks for the recommendations.  

@Andrew Clark I responded to your email this evening.

@Ignacio Rosenberg you don't want to be "that person" who is talked about on social media by everyone for increasing rent on people who may even be out of work. It also puts you and your tenants on the wrong footing with a bad first impression.

Take care of your sweat equity tasks to make the place look a bit nicer.  Hopefully we get out of this soon, the tenants will like that you are putting a little money in vs the last owner and it will likely facilitate an increase in rent if one is justified.  

As to your idea of giving them a free month of rent then boosting it - does this make financial sense?  If you dropped a month of rent you are losing $XXXX, if you increase it $150 you are ahead by only $1800 - $XXXX on the year.  Is that worth it to you?

I personally would let this ride out first, only fix what is needed then get to sweat equity followed by a "not aggressive" increase.  Vacancy is a real cost and in many cases it takes a few years to break even on an apartment remodel.

@Brad Schaeppi can help you out.  I would recommending going to his website and scheduling a consultation.