All Forum Posts by: Daria B.

The lease is not being renewed and they have already been notified.

I think my biggest issue is the non payment of the plumbing bill, unpaid rent though it was paid by the state and the overall disregard for those things but yet I am supposed to just get this microwave fixed.

If a tenant has 2 months remaining on a lease, who has not paid rent since 9/2021 and has no plans on paying  (and is working) but has had state funds from COVID who finally paid the late rent, complain about a non working microwave, what would you do?

Tenant also owes for jamming up the plumbing and hasn’t paid that bill either.

Yes, the microwave was part of the rental ad and I feel compelled to get it replaced but it’s not an essential part of the house and I wanted to wait for this tenant to be gone.

The PM had the handyman over twice to no avail no solution other than dropping $$ to have another one installed. The unit was broken by a former tenant and the handyman tried some glue that didn’t work on the frame.

Would you just drop more money now and get it replaced? 

I should add this is not a countertop microwave it’s one that requires wiring into existing electrical and mounted under a cabinet over the stove. What if I provide an inexpensive countertop - it’s still something?

There’s no telling if this tenant will cause damages. There was no red flag when the application was submitted and credit and all other checks were done. COVID has made what would be good tenants turn bad.

UPDATE: The more I think on this the more I lean towards just replacing it. I was grappling with the feeling of being at the insistent of the tenant who isn’t paying. There’s more to the unpaid rent/state story and past communication on that but it’s not necessary to air here. 

 I have a former tenant that caused damages and have unpaid rent to about $8k. The PM sent this to collections and said some pay but most don’t. This one hasn’t paid anything. I looked into getting a lawyer but that cost is so much as well.

How were you able to get your money from the collection agency you used? Why did they do so different than other collection agencies?

In my case example though the borrower paid off the note, it wasn't a sale. I mention UPB just for the sake of info.

In your example the principal is paying down the cost basis ($60k). I would need to look at the principal amounts of those payments to reduce the $60k, I get that.

So say, I pay $60k, borrower makes some regular payments (p/i) for 2yr (arbitrary number) then decided along the way to just pay off the note.

Borrower gets savvy and makes additional principal only payments. This should reduce my cost basis, yes, thereby paying back my initial purchase money through the extra principal payments. 

How do you track that? 

I got this from the commission meeting held in September. Much like what the city just did so too will the county.

At their September 28 Regular Meeting, the Alachua County Commission discussed their draft Residential Rental Permit ordinance, which has a proposed effective date of March 1, 2022. It is similar to Gainesville’s Renters’ Rights Ordinance and will apply in the unincorporated county, while the smaller municipalities will be able to opt in but will not be required to participate. The permit application for landlords would include a completed self-inspection checklist certifying that the unit complies with the standards in the ordinance (including energy efficiency standards for attic insulation and attic access and efficient shower heads, faucet aerators, and toilets), documentation of maintenance of the HVAC system, and payment of a fee, which will start at around $70 per year. Units will be inspected once every four years, and complaints will trigger inspections in between. The ordinance will require the County to hire four codes officers and a licensing clerk for a recurring cost of about $345,000 per year.

As part of adopting the ordinance, the commission will also adopt a new Tenants’ Bill of Rights, which landlords will be required to provide to tenants. Commissioner Anna Prizzia said she was interested in adding “some of our human rights… maybe adding them to this Bill of Rights that is given to folks so they know both pieces of it, both the maintenance pieces and just the human rights pieces.” The commissioners decided that they had time to work on that and set it aside.

Gainesville FL is over built with big money skyscrapers now. They continue to build and aren't filled. Far too many apartment complex builds. It's hard to see any balance of SFR to that of multi-units with all these high-rises popping up.

Not complete but I think enough that I understand initial capital "may" come back when a note is sold for profit. In the case of one that is paid off by the borrower, there isn't any initial capital considering the pay down / pay off but the principal that is included in the payments (P/I) is capital payback. I had always been accustomed to getting my initial capital back but then again we were always in the mode of selling after a period of time to another investor where there was still UPB.

In my example, purchase was $60k (not UPB), they paid down the UPB ($120k) doing extra payments including any arrears until paid off. Nothing to sell so the $60k invested?

For tracking purposes, I'm not really sure how to do a payoff because it appears that it's a loss with the way I am currently doing tracking, which is very, very, very simple. 

 I get that some investors need that protection. When I got into note investing it was education, education, education and not everyone follows that they just jump in without understanding. So I get the trying to protect those investors but one size does not fit all.

I read through a few articles on this proposed law since posting this and just don’t see this as a benefit for those of us who finally got into this space and have begun building up our portfolios.

#1 - agreed but those who don’t invest in stock and have turned to RE now face an upset in their portfolio.

#2 - I hope every IRA investor reaches out and writes a letter to address this. likely not going to be thought out and still won't affect their target, which means those below or on the fringe will be cut out from investing.

Thoughts on this….

This article was sent to me from my CPA after I asked a question about my current note investing and investments I am seeking to get in on, which includes anything from individual purchases with a JV to accredited investing with a fund company.

https://www.cnbc.com/2021/09/1...

My SDIRA also sent me this email regarding the proposed tax law on using IRAs for these investments.

How does the proposed legislation affect me?

The proposed legislation would prohibit IRAs from holding privately-placed equity and debt securities and other investments that require the IRA owner to meet certain minimum financial, educational or licensing requirements. For example, the legislation would prohibit IRAs from holding unregistered investments that are offered to accredited investors, like equity or debt investments in small businesses or investments in private funds. You may very well hold investments in your IRA today that would be prohibited by the proposed legislation.

The bill would also prohibit IRA owners from investing in (1) non-publicly traded entities in which the IRA owner and related entities (including the IRA itself) own more than a 10% interest or (2) any entity in which the IRA owner is an officer or director, regardless of ownership percentage. By way of example, single-member limited liability companies or any investment in an entity in which an individual is a director or officer could no longer be held in an IRA.

IRAs holding any of the above investments would lose all of the tax advantages previously available to the IRA.