All Forum Posts by: Glenna Wood

Yes you can convert your traditional to a Roth IRA because it's a conversion not a new contribution.

When have had Property Managers for my vacation rentals, I hire the PM as my Agent so they execute and sign each rental agreement. As the owner I don't sign them. If the PM did not sign on the bottom line as being accountable for the leases and how they rent my house, I wouldn't hire them as a PM. Sounds like you are trying to "wholesale" the rental agreement in that you want to broker the process of renting to guests but not act as an agent. 

Since rental agreements are state/city driven, as said above, if you want a template, visit a PM web site as a potential guest and ask to review a sample contract in that locale.

Maybe I'm not understanding your question.

You simply can't do a legal 1031 on your own because you cannot personally touch the money. You must use a QI and their location with respect to the properties involved doesn't matter. 

Upholstered arms are a headache. Easy to stain, hard to keep clean. I bought a not cheap Sunbrella set which is marketed as "durable" and was very disappointed. Stained within a season. Had a house with an old Bassett set (a la Michael Baum above) and these held up really well but sadly were in a really old fashioned icky gold swirl print. Again the arms were more worn. Over the years I  switched over to wooden frame furniture with exposed wooden arms and slip covered loose cushions. Nautical style print throw pillows with zip off overs add color. On the extra two fully upholstered chairs I had slip covers made from slipcovershop.com with extra arm covers.  They take beating in a beach house with sand, sun tan oil, drippy frozen pops, and spilled drinks (plus I allow dogs). It's so easy to zip off and clean each spring.  If I had a not-at-the-beach house, I would look hard at leather but can't give you any specifics. 

Are you planning to mix STR and LTR in the same motel complex? Look really hard at that and make sure you can meet the needs of both clients. Vacationers who want to drink beer and play music at midnight doesn't mix well with people who need to get up and go to work. Consider parking, potential noise, access to amenities, etc. If I was using ABnB to rent and find out it's just a room in a motel, not sure how happy I would be over that. Just get all expectations including yours on the table so everybody stays happy.

New lease or not I would get a written agreement from the seller and renters on the security deposits.

I've been using Madison Trust. Their documentation on their web page describing all of the processes is excellent. I have notes and used their partner firm, Broad Financial, to set up my checkbook LLC. I have purchased building lots on a beach area and am holding these long term. The LLC allows me to pay the annual taxes and HOA fees. I keep it simple and purposely avoid carrying debt or doing any investments that would trigger UBIT. I would do it all again in a heartbeat. Best wishes.

Eight years ago it was about $1400 for set up and 4 weeks to roll the funds.

Madison Trust works for me. But you need to evaluate the fees based on your specific assets in your SDIRA, ie, processing transactions vs dollar value of assets held to get your best fit.

What an opportunity! This could be a win win for all.  Is the current mortgage assumable? If the terms are better than piling debt on credit cards, work those numbers as an option. In defining terms for a seller financed note, consider each relatives age and circumstances and their potential heirs of their piece of this pie. You may want to structure balloon options tailored to each situation. You don't need professional servicing if you are willing to track payments and do the interest reporting to the IRS yourself.  If they are not financially savvy, be prepared explain the seller financed capital gains advantages for each of their situations. Also look very hard at your own cash flow situation and the worst cases on collecting income from the property to be 99.99% sure you can repay your relatives as promised. Stuff happens and a potential foreclosure on a family member is heart breaking. Best wishes!