All Forum Posts by: Reuben Dacher-Shapiro

BP community,

What steps do you take to verify tenants are current on rent? In light of COVID and the extension of the NY moratorium on rent I am concerned with closing on a property with tenants in place. And as a general matter, as NY has onerous eviction procedures.

I recently had a multi family under contract I was planning to house hack. Rental receipts and rent being current were a condition I requested precedent to closing, but seller was not happy to say the least. Part of their explanation was she did business “differently” and trusted her tenants. I cancelled the contract as one of the tenants was already late on rent and I found the sellers explanation for not providing rent verification wanting. They had the Venmo transactions but because they used Venmo frequently they could not show me each one.

Understanding there is no way to guarantee a tenant continue to pays rent, what strategies have people used to close houses with active leases? Beyond making vacancy a condition precedent to closing, which could cause other problems for seller as they don’t have a straightforward way to remove tenants right now.

Appreciate any insight the community may have. Relatedly, I am still looking to purchase a multifamily to house hack in the capital district. Feel free to reach out if you would like to connect.

Does anyone have insight into market practices for providing snow removal services for a 2-unit rental with one small driveway?

The property is in western New York so it will snow. We provide shovels and salt for the driveway but the lease says nothing about snow removal on the driveway. I’m wondering if it’s custom for the landlord to provide for driveway snow removal or it’s typically a tenants cost. In a larger multi-family with a bigger driveway I would assume the landlord pays for it.

I understand providing the service would be a value add but am curious if it’s expected and others experience or strategy. Would appreciate any insight either way.

Thank you,

Reuben

@Lance Lvovsky. Thanks Lance. I think that is exactly the type of system I envision. Manage my finances up to a certain point that is efficient and effective. But also ensure whatever system I use can be easily understood by the professionals.

Do you work with out of state clients?

@Basit Siddiqi. Thanks Basit. That penalty is from the state? I was under the impression you did not have to file federally if you did not have income in your first year. Notwithstanding other potential negative repercussions of not filing.

Also, had reached out on LinkedIn to try and set up an intake for tax prep and planning. DM me here or there if you would like to connect further.

@David M. Thanks David. That sounds like a great way to master your finances and improve your tax position. I am short and time and trying to maximize productivity by outsourcing the highest value parts of a real estate operation. Taxes seem to fall within that category, but it does not mean I can just pay someone else to do it and ignore it. I appreciate the insight.

Do you invest in NJ/NY I work in NYC! I have been looking in the broader metro area.

My team and I have an LLC that is the titleholder of our first investment property. We did not bring in any income last year. We want to write off start up expenses and start depreciating the property. We are seeking a CPA for tax preparation and longer term tax planning. I am interested in what people have done to manage their books while also working with a CPA. Excel sheets? Tax software? Outsource everything? Any recommendations or insight into the above would be appreciated.

I was hoping someone could clarify the law around security deposits in New York. As I understand it, the law requires landlords keep security deposits in interest bearing accounts, IF the building has 6 or more units.

I do not believe there is any accompanying legislation for residential landlords. As such, can you keep a security deposit in a non-interest bearing checking account? Further, do you have to keep security deposits for residential tenants in separate accounts?