All Forum Posts by: Robi Hawley

Hi! My husband and I are medically retired and are in the process of setting up our two houses as rental houses for our children to manage and inherit in time. I'm trying to keep it simple but I keep seeing a tax strategy that would work for our particular situation. Seems too good to be true so I think I'm misunderstanding the tax laws. Can I run it by you?

Hi Tyler! Welcome to Bigger Pockets!

@frank 

@Frank Lienert Hi I'm a new investor in the Bellingham market ( closing Wed. on our first deal ) but I'll share what I've noticed in the trends here. It's definitely a sellers market, houses are selling at max value and most are engaged in a bidding war. Established, experienced investors are finding good deals but for those without connections yet it is tough. You really have to be creative in your vision to create a great deal out of a regular purchase. Being new to re investing, I'm sticking more to what I know and plan on a major remodel to an historic home to create an upscale sfh with an ADU bonus, essentially buying what I want to live in myself. I've always seen a nice profit when selling my homes in the past so all I'm doing is shortening the timeline (instead of remodeling over 3 to 5 years I'm doing it all in 4 months). By timing my remodels, helocs and rentals on the new house and my current house I'm hoping to create enough profit in a year to invest in a small development.

Finding a house under 300K is difficult. And when you do it needs a ton of work to make it a profitable investment. If you know how to buy at auction or you know how to get homes before they go on the market, then you can probably do very well. I don't have that capability yet so I'm trying something different, and hoping I get it right! Reach out to Patrick Britton here on Bigger Pockets, he comes highly recommended and looks like he can help you with traditional investing deals.  

Foundation alone won't do it, it has to be stick built on site but I wonder if you stick built on site the outer shell? Then the interior would be off site manufactured only. By the time you get done trying to work around the system though it might be cheaper to build! Lol

Hi Sue! Missed this, sorry! I checked and Fast Eddies has moved on but downtown is still a lot of fun! Bellingham has a ton of great areas to hang out depending on what mood you are in at that moment! If you make it up this way let me know and I can show you some of the new spots!

Sorry, should have clarified, I'm not looking for investors or financing, this is my own personal plan. Too many people don't realize how important a plan can be to achieving long term goals. They write them because they have to for others not because they intend to actually use it to help guide their strategy. With a personal plan you strip all of the excess language away and focus on your own needs and goals. A simple tool to refer to and keep from getting sidetracked.

Hi! I'm writing up my business plan and need guidance on conflict resolution. Specifically, at what price point do you say "principle and righteousness aren't  worth it?" I know it seems a weird question as well as personal but I think it will help me to focus on the bigger picture when dealing with bad tenants. As an accountant I've often had to advise clients when to drop an issue because the returns don't justify the expense (sunk costs) but recovering stolen property (rent, damages etc.) feels different than evaluating a product line or expansion. I was hoping to explore the idea up-front to prevent a future "no holds barred, destroy the bum, I don't care what it takes, buy the attorney a new pool" attitude! Words of wisdom?

Congratulations to both of you!

Ahh Cali girl, this time of year I think you are crazy for leaving Bellingham, come November I am green with jealousy that you live in California and I'm here! Lol 

I took everyone's advice and rented it out yesterday. They saw it first, they made the decision and put money down. I felt like I would have been doing them a disservice choosing the other group based on my personal feelings. If the other group does call me today or tomorrow I have located an alternative property for them to consider that is very comparable to my place. When I mentioned that property to my new tenants they said it was the house that kept them undecided about mine, they were going back and forth on which one they wanted so hopefully the other group will like it too.

In the packet of documents that I was given to use I was told I could not take a "security deposit" until the day of property transfer when I could do the walk-through with the renter. Instead I was to use a "Holding fee Agreement" and then apply those funds to the first months rent. My advisor (CPA and experienced landlord) included a clause in the Holding Fee Agreement that it would be refunded if the tenants failed to pass a screening or credit check. On move in day the tenants will have to supply me with a cashiers check for the security deposit, pet deposit and last months rent. These funds have to then be held in a separate account (I cannot use them!) until the lease is terminated. 

The others are right, you have signed legal documents with definitive obligations on both parties so check the wording of the document carefully and compare it to the rules listed in the NW Justice Project. Morally, it sounds like you have a case but perhaps not legally? Owner should do the right thing and give money back tomorrow, but legally they may have 14 days to return it. You need it now to get another rental and attorneys are expensive.

Your situation really struck me yesterday due to my own personal experience at the time. I'm not advocating that you NOT hold these people accountable but I am saying you need to be practical about it.