All Forum Posts by: Paul Camuto

Hello,

I know there are many opinions, but I still want to hear them. I have so far not allowed cats in one of my properties (condo) but there is a seemingly good couple who has applied and has an indoor cat, so I'm debating what to do. I was even invited to see their current apartment and I met the cat. I sensed that the cat was scared or in some way problematic because they kept him in their arms and they warned me when I pet him. I am a cat lover and it was all good, but I sensed something was not quite right (the breed listed on the application is "Maine coon tabby mix"). I am not worried about cat pee because the cat is already 8 years old, but I am afraid of having the cat scratch the kitchen cabinets and the walls. Did you ever face that problem? Also, they currently live on the second floor, but this condo (with upstairs and downstairs) has a patio, so I wonder if the cat will really not go out...

In a SFH, I allowed a cat and aside from a small frayed area of the carpet, it was OK (my other property has only vinyl and tile, no carpet). The tenants were particularly good maintaining the house.

I've been reading a thread that suggests to require the following in order to allow a cat:

1. Resume/Biography for the cat (including vaccinations).

2. Declawed and Neutralized

3. Letter from previous Landlord that the cat never damaged anything in the house in 3 years.

It sounded reasonable other than "declawed," which sounds cruel to me. 

Other than that, the couple seems fine (and their financial situation is very good, but taking them means facing these risks and not taking them means waiting to have another application come in.

Thanks!

Hey, BP family I have a few properties in Milwaukee Wi that are cash flowing but with me recently moving out of town and the way the market is I'm thinking to sell at least one of them. The one I'm thinking has a new roof & in good condition but not in the best area of town and I don't want to hire management so I'm confused. What's your thoughts?

Hey all!

Looking to house hack, so I would like to live in a safe neighborhood of course! What resources do you guys use to see if a specific address is in a safe neighborhood? I would appreciate any feedback! I have been having trouble finding this out on my own!

Hi,

Via a trust, I was given a choice to retain or sell two commercial properties one in Vancouver WA (multi tenant retail + freestanding bank building) and the other in Hillsboro OR (multi-tenant flex industrial).

Given the valuation of the two commercial properties and the fact that I need to split the estate 50/50 with another family member, I can only retain one property should I decide to do so. 

The Vancouver property is valued at about $4 million (6.25 CAP rate) If I keep the Vancouver property it would make up roughly 85% of my net worth, which doesn't fit any typical asset allocation model I know of. NOI is about $220K a year. Fully leased. A sale will generate capital gains taxes and depreciation recapture, however that expense will be shared with the other beneficiary as would any other estate expenses. There is no way to 1031 unless I convey the property to myself and hold for a year - in other words own it.

The Hillsboro property currently uses gross leases (without options) running into 2023. Currently non reimbursable expenses eat up a large portion of income. NOI is about 80K a year. To change leases and/or to re tenant will be a challenge/opportunity moving forward. A sale now is free of capital gain. Brokers indicate a potential owner/user may pay $2 - 2.3 million based on comparable sales in area, a premium of 500K - $800K over an investor using an income valuation ($1.5 million), however this buyer maybe harder to come by.

The biggest question my mind at the moment - Sell both properties or keep one and if I keep one, which one. Brokers are telling me if I want to sell, I need to do it immediately due to interest rates. I still haven't been able to determine the impact of the depreciation recapture (anybody know a good CPA?)  on the Vancouver property and it makes me nauseous to see the capital gains taxes (about $450K ) plus selling commission and excise tax evaporate into thin air.