Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Alex M.

Alex M. has started 22 posts and replied 127 times.

Post: Update on Denver's STR/Airbnb ordinance

Alex M.Posted
  • New York, NY
  • Posts 144
  • Votes 75

@Valerie Rogers

Now let me ask you:

-What about the hotel lobby which is paying politicians hundreds of thousands of dollars in campaign contributions to protect their interests?  Is this not unethical?  

-What about the KBG tactics employed by law enforcement to infringe on privacy and harass people at their homes?

-Is the world not better with AirBNB allowing people to travel and have a better experience with their families? Is it not better with Uber?  Uber went through the same issue.  It takes disruptors and vicious battles to break the entrenched interests and status quo.  

If they want to restrict my rights as a property owner, they will do so, but I will always find a way to exercise my rights and go to court fighting it.  I feel that strongly about it.

Post: Update on Denver's STR/Airbnb ordinance

Alex M.Posted
  • New York, NY
  • Posts 144
  • Votes 75

I operate in NYC and we have very strict rules so I've had to be pretty savvy about getting around the rules and always looking for the loopholes:

New requirements for new and renewing licenses

  • Unlike before, you now have to prove your primary residence by providing at least two of the following documents: vehicle registration, driver's license, voter registration, tax documents or utility bill

** Whats the problem here? Your utility bill will have your name on it anyway? What's to say that it has to be the place where you spend most your time? And then buy a vehicle, register it, send in the papers and then sell it.  Or if it's easier, get a license in CO, and then after registering switch it to whatever state you actually live in.  Takes a little maneuvering but if you're making 10's of K's of $'s per year per place, who cares? **

Future options the committee is considering

** Note: any changes to the ordinance would have to go through the Denver city council process and therefore is months if not a year off. The below ideas are just being floated right now. Nothing is actually moving forward yet.

  • Limit the number of days per month or year that you can rent your entire residence
    • They did this in Boston.  Would love to hear how people are getting around it.  We dont have this in NYC (because its strictly illegal to do anything <30 days), but I have to create a new account for each property.  I am going to start getting burner phones so each account has its own phone number.  Fake names, addresses, and separate emails.  What's to stop people from just creating a new account once the first account hits its maximum?  You can use a photo editor to change the pics slightly (I do this too) and not be detected by any image recognition algo AirBNB may use.
  • Require that a license holder reside in the primary residence XX number of days. (Currently, there is no minimum number of days you have to live there for it to be considered your primary residence.)
    • How is this enforced?  Are they going to do a Residency Audit?  That gets expensive.  So you open up a new bank account in CO, and give someone you know in Colorodo ATM authorization to use your debit card and put a prepaid amount on there for them to buy groceries each month as a tip for doing you the service.  Now you have a paper trail that you're "living" there.
  • Require evidence of neighbor support or at least proof of notification of neighbors. (Yikes!)
    • OK so you pay your neighbor off.  I pay off Supers in my buildings all the time.  It's just a little greasing of the palms and as long as there's no harm and no disturbance, everything is smooth.  It's good old American business!

The way I see it, unless they start tracing your IP address to your computer's location and triangulating that way, OR AirBNB starts forcing you to provide a unique identifier like a SS# to open a new account and then somehow verifying it (You can still have friends and family have accounts this way) and using a blend of strategies to make sure you aren't gaming the system, it will be very hard for them to enforce this for those who are motivated to get around it... My 2 cents.

Yes and when people say 15-25% they are talking about the top line... so in reality you're giving up like 33-50% of your net income.

Post: Entity formation: worth doing it myself?

Alex M.Posted
  • New York, NY
  • Posts 144
  • Votes 75

I was told a Series LLC in TN and S-Corp for the NYC rentals is what I need. This is in line with what I've been reading-- The Series because I plan to keep investing in TN, and the S Corp to avoid SE tax

Leaning towards going with Cheri Hill from Sage International for $1790 for the Series, and $995 for the S Corp. Thanks all.

@Mike S.  Interesting strategy and seems to be what the Andersen Advisors suggest -- the WY holding company, with a C-Corp management entity, that enters into long-term leases with the LLCs.  is that who you used?

Post: Experienced Investor Looking To Partner With Newer Investors

Alex M.Posted
  • New York, NY
  • Posts 144
  • Votes 75

hi Tom--

I am interested.  Would you be available for a chat?

Best,

Noah

Post: Entity formation: worth doing it myself?

Alex M.Posted
  • New York, NY
  • Posts 144
  • Votes 75

hey Michele, this article may help explain.  The S Corp is a 'pass through' entity where the owners report share of profit and loss on individual tax return


https://www.incorporate.com/s_corporation.html

Post: RE attorney with Contract/Landlord/Tenant Experience in NYC

Alex M.Posted
  • New York, NY
  • Posts 144
  • Votes 75

Looking for a real estate attorney with good backing in landlord/tenant law. Running a number of NYC AirBNBs and want to run it through an LLC.

Also need entity set up for TN based investment properties, and an S Corp Property Management Company

Hey-- I have spent a lot of time in Miami growing up and have also done a fair of amount of scouting for AirBNBs in the area.

I feel Miami can be a good market, but you'll face a couple of issues:

1) HOAs will usually not allow this in any building

2) To do it legally, at least on the beach, you will likely need to buy in a Condo Hotel.  They charge a lot more $/sq ft for this privilege, and personally I dont find the return to justify it.

So maybe check out Little Havana, Design District, or another tourist area that's not on the beach itself.  Or you can risk it, but I hear they are giving out $20k fines altho not sure if these are actually being enforced. 

Post: Entity formation: worth doing it myself?

Alex M.Posted
  • New York, NY
  • Posts 144
  • Votes 75

@Michele B.  I would use the S-Corp to avoid paying SE taxes.  Since my business is short-term rentals, we rely more on the cash flows for our return.  I dont believe the S- Corp taxes you double.  If Im not mistaken that is the C-Corp which does that. 

@Caleb Heimsoth  Thanks for this - thoughts on triggering Due on Sale?