All Forum Posts by: Account Closed

@Erwin F. @Account Closed

Thanks all.  Your responses are what I was thinking so thanks for confirming!  The owner lost his property manager/handyman, so I image he will be ok with not trying to fill the vacancies.  He's been very hands off I think.

Hello all.  I have my first multi-family under contract in Evansville, IN.  Two of the four units are currently vacant.

My question is regarding filling the two vacant units before closing.  Should I ask the seller to stop trying to fill the vacant units, or should I ask the seller to allow me to be involved with the tenant screening?

Thanks!

@Lara N. Yes, sorry, I got off on a tangent.  We don't rent to smokers period.  Someone might consider standing at an open door blowing the smoke outside as "smoking outside".

@Lara N. The first property we bought was owned by a couple that smoked in the house for 60 years.  I thought we'd be able to clean everything up (1200 sf) in less than a week.  It took the two of us at least 3 weeks to scrub the walls and ceilings clean with Trisodium Phosphate.  As @Shaun Palmer mentioned, the buckets of water/cleaner turned brown quickly.  We then primed all the walls and ceiling with Kilz complete to seal any remaining stains.  The Kilz complete smell was almost worse than the nicotine.  The chemical saturated our clothing and any fabric tool bags we took to the property to do work.

We will never allow smoking in our properties after that experience.

@Kelly Wiggs @Marc Hoeppner I was with Harding, Shymanski & Company for eight years here in Evansville.  I'd be happy to send you the contact information of someone in the tax department there you can talk to.  Send me a PM if interested.

Chandler Ludwick The only drawback I’ve found to using an LLC is that Fannie Mae (FNMA) will not back a mortgage to an LLC. Meaning your LLC cannot get a conventional 30 year mortgage through a bank. You most likely will be limited to commercial loans from local banks that are normally 15 or 20 year amortization.

@Molly Morlino Congrats!  I think your properties look great and I love the whole idea of multiple small detached homes.  I know you mentioned no permit issues, but was the property already zoned for this?  Is this all on one plot of land? Also, how do the mailing addresses work in a situation like that?

As far as your HELOC goes, I would guess that an appraiser will have a rough time with comps. I don't know that for certain, but I would guess it's going to be difficult!

@Rob Terpilowski PM me and I'll give you Chris Austin's number.  He's investor friendly.

@Ivan Barratt Congrats to you and your team!

@Dan Rosenberg I don't think ethics has anything to do with this scenario.  As a CPA, I have to abide by ethical standards set by a specific code.  Most other professions have a Code of Ethics that provide bright line tests for its professionals to follow and for the governing body that is responsible for the Code to censure/penalize those that cross those lines.

As far as your question about "whether it's OK?".  Sure, why not!  If someone has found a legal, competitive advantage, then they should utilize it.  That sounds American to me!