All Forum Posts by: Clay Smith

Ask your local credit union Business Loan department for a "Line of Credit" instead of the word HELOC. The same people who make loans on rental property locally generally can give you a line of credit as well.

One method is to offer more money. Let's say it has a bad roof. Get a quote for a very expensive roof. Offer a purchase price = [costs to replace the roof] + [purchase price] and then ask for a seller to give cash at closing for roof replacement. Since it is cash that goes to you on the HUD it will offset how much you bring to the closing table. The bank won't care if you are paying 20% or not and it reduces the amount you bring to closing. Try to git as much as you can up to the appraised value and DSCR still covers. You don't have to replace the roof today. Push it down the road farther and budget off the NOI.

Another option is to use your HELOC. Then later, bring in a partner after the sale. Have them pay the 20% cash requirement and give them an equity position up to XX%. Pay them interest only X% of the amount they put down out of the NOI to service the loan. After 5 or 7 Years refinance their money out and equity position out. National average appreciation Y-o-Y is 3-5% annual and time will solve all problems. Getting their cash today allows you to keep operating.

We use Rawn Law Firm, LLC to handle this for us.

Hello Courtney. I have a crosswalk of several different PM Companies I can share. This link will not work forever. We are moving the website soon. It is under development right now and this is our development site. It is best viewed on desktop. Let me know if any of the info is incorrect.

https://smithclay20.wixsite.co...

It is very common for people at showings to say they are interested and that they will apply. Then they do not. It is a crazy high percentage of people that do this.

if it is in Rangeland I can see this going stale. That area is totally different. We have to adjust our marketing plan in this one area.

if you are stuck or need validation reach out to me.

We manage in Louisville and our average fill time is 10 days or less (2-15 max days). 

We have free rental analysis reports on our websites to help you set your price right.

Multifamily homes have a slightly longer fill time but overall we have not experienced a lull in placements during this crisis.

Have you asked for feedback? Is there anything off-putting or mislabeled in the listing (small bedroom, pass through bedroom)? Are you trying to rent as a multiple roomate living situation? Are you trying to rent without appliances? Is you deposit more than one month's rent? Are you allowing pets?

I have a claim in right now for a fire. We shall see

I have got to debunk this thread.

1. I cannot find anywhere in that the IRS says "if you keep all or a part of a security deposit because the tenant caused damage that is considered rental income." This is accurate information, and if so please cite your reference. 

2. Pub 957, 1099-MISC Instructions, and Topic 144 all fail to address these specific questions and most likely will be interpreted with bias depending on who is reading them. There are several different ways you could interpret the meaning incorrectly but let's step back and look at Box 1 "Rents" and Box 3 "Other Income". Did you collect rent or income that was not rent?

3. I even read a cross-post from Hijorst Fjoords referencing utility payment issues which are separate from this scenario. The CPA said it "...was an act of Tenancy..." and this also is not language that exists anywhere within the IRS publications.

4. Furthermore, The instructions on the back of 1099 tell the recipient to report the income in box 3 on Sch C. only if, "...it is trade or business income, report this amount on Schedule C or F (Form 1040)." Since it is not trade or business income, they report on Sch E and don't "kick out".

In Summary, was it a Rent payment? or was it not Rent (i.e. Other Income)? 

pet restrictions are all about managing damage to the property and lawsuits from the harm they do to others (visitors and neighbors). 

Carpet, Paint, scratching, urine all reasons to charge fees ensuring compensation is equivelant.

Limited breeds or types of animals can reduce the risk of a lawsuits.

Decide what level of risk you are comfortable with.

Can you get the info for NC civil fines (evictions) here? 

https://www.nccourts.gov/servi...