All Forum Posts by: Pat Daniels

Thank you Dave.  Based on your response using funds this close to selling could trigger an audit which I would prefer to avoid.  

Late to the post. I have five properties that I plan to sell and 1031 into DST investments. I have un-tapped HLOCS on two the properties and was planning to pull funds from them to replace carpet and appliances, complete some repairs and have the units painted. Can I use the funds available in the HLOC to cover these cost accross all five properties?

Thank you for all the helpful suggestions.  I finally was able to get them to sign an addendum to add the new tenant to the lease with the increase in rent.  It was painful to say the least.  Next time I will start with the five day letter and then go straight to a new lease.

Thank you Corina! We are using and addendum and having the existing as well as the new tenant sign.  I also plan to review the full lease with the new tenant as well.  The existing tenant does not believe we have the right to raise the rent so she is supposedly having her attorney review.  Not sure how long I should give her for this before sending out a five day remedy letter.  Any thoughts?

Thanks Adam the lease is based on the Wisconsin Realtors which states the Following:

During the lease term, as a condition of Tenant's continuing right to use and occupy the Premises, Tenant agrees and promises, unless Landlord otherwise provides in writing, as follows:

10. To NOT permit any guest or invites to reside in the Premises without prior written consent of Landlord.

I think this is pretty clear that by allowing another person to move in they have breached the lease.

I did tell her that as I see it she has the option to have the new person move out and continue as with the original lease rate.  I did not offer a new lease but an addendum to add the new person to the lease with an increase in rent.  Maybe under the circumstances I should just go with a month to month lease to see how things work out.

We are in Wisconsin.  I have a tenant who allowed a friend to move in with out notifying us prior to the move.  Upon discovery we required that they complete and application and be added to the lease.  We also told them that the rent would increase by $50.  The current tenant if fighting the increase stating that she has a lease.  We had an attorney review and they see no rules in Wisconsin prohibiting an increasing rent considering we are issuing an addendum to the original lease with the increase.  Any insights on this would be appreciated as they have taken it to their attorney for review.

Thank you for your response Brian.  It is very useful information. 

I recently left my job and am subcontracting with my previous employer. I am assuming the income would qualify to open a solo self directed 401k and that I could rollover IRA funds into the account. My goal is to buy rental properties with this account and start drawing the income from the investments when I'm eligible in about a year. So my question is can keep the account open once I no longer have the subcontacting income to contribute.