All Forum Posts by: Sheba Shimoji

Hi,

We are closing on 14 unit property on next Tuesday! I am so excited! This will be our first time inheriting tenants but the previous owner did not do move-in inspections on any of them. How do you justify to use their deposit money for the later repairs? 

Ok, I really need a new CPA who is specialized in real estate. This might be a stupid question, but my current CPA is one of my family friends and he has been very nice to me. I am really sorry not to keep using him but he didn't even know how 1031ex works... How should I tell him (or not to tell him) that I am switching an accountant? 

This can also apply to my plumber...my husband's family member is a plumber and we've been kinda obligated to use him but he does horrible jobs and I am not comfortable using him any more. 

Did anyone experienced a similar situation? If so, how did you overcome the situation without damaging the relationship with them?

Thank you very much everyone for all the great advice.

Honestly, I don't really understand myself why I have S-corp. About a year ago, I was told that I will save tax money through S-corp, and it is good for the asset protection. So I set up an S-corp. All the expenses comes out from the corporation account, but all the rental properties are held under my name, not the corporation. It has been very confusing because my corporation doesn't have a source of income. I deposit my money into a corporation account first to be able to pay the rental expenses. 

A few days ago, I was also told that I need to have a signed contract between myself and my corporation on the property management aspect. That's why I am trying to figure out how much I should pay to my corporation for the property management fee...

My CPA seems inexperienced in real estate field.(I figured out that a few weeks ago when I asked him about 1031ex. He didn't know anything about it...)

Maybe, will it be the best if I close my corporation?

Hi, 

I have 17 unit rentals and I have set up a S-corporation acting as property management company. The average property management fee in my area is 10% of the rent collected. How much should I pay to my corporation for the best tax advantage? Is Lower rate better so that corporation doesn't earn much or is higher rate better so that I can deduct more on 1040?

Thanks,

Hi, everyone. Today, when I returned to one of my rental properties that I purchased two months ago, six unknown people were gathered around my property. They were taking pictures and measurements of the outside stairs to the 2nd floor unit. When I reached up to them and asked what's going on, they told me that they are lawyers and engineers, and there is a lawsuit against the previous landlord of this property. A tenant who lived in the upstairs unit was carrying her laundry basket going down the stairs and fell two years ago. She did not break a single bone but  scratches on her legs. She has a weak immune system so her scratches became infected. Now, two years after the accident, she is suing her landlord who used to own this property. 

It has nothing to do with me but made me think so much about a potential lawsuit against me as a landlord/property manager. 

The stairs look fine and I never thought that they needed any repairs. I am not sure who is going to win in this case. I will be following up. But it seams like it was the tenant fault not being careful enough and not using the railing.

Do anyone experienced similar lawsuit? How do you protect /prepare yourself from such a lawsuit besides insurance?

I'm about to put a house (flip took longer than a year) on a market. I signed a contract for different real estate unites (a group of 14 small houses for rentals) closing in September. Can I sill use 1031 exchange? If so what are the steps I need to take?

Wow, great advice! Thank you very much! So you can buy a loan through SDIRA? Does it mean that I can lend my money through SDIRA to another investor? Maybe it's better not to touch my IRA at all. I'm just not so happy with my current traditional IRA...

Hello, I recently came across at an article about self-directed IRA. I was wondering whether or not I can rollover my traditional IRA money to the self-directed IRA, so that I can use this money to invest in real estate without paying penalty, right? I am not familiar with this so I don't fully understand how it works. Do most bank offer this kind of IRA or do I need to search particular institute? Sorry it might sounds ridiculous to some but I'm a newbie and I have dumb questions. Any input will help. Thank you!

Hi,

Nice to meet you everyone! This is my first posting. First let me tell you my situation. I just got engaged last december and quit my job and moved to a new place for my fiance. My fiance and I started a flipping house business and I also started a freelance translating business to make some money while working on my first flipping house project. Since this project won't be done until June and the freelancing is a contract business, my income is not steady throughout the year. I figured that I need to submit 1040ES by April 15th, but how can I fill out the form 2210 for not getting the steady income? I really appreciate any input on this subject. I am a newbie on not just real estate but also having my own business. Thank you!!