All Forum Posts by: Paul M.

I'm learning about/shopping for financing for 5+ unit residential properties, after having only owned 2-3 unit buildings. I'm finding that the banks only care about the property itself supporting the loan, even though they are not non recourse loans. Having a high income or net worth ("global factors") doesn't seem to factor in (I imagine it would factor in if personal finances were negative though!). In the 2-3 unit world it was always the combined finances that fed into a debt to income ratio and that was the hurdle. The rent to market value ratio is weak on some properties in my area so it seems to meet the 1.2-1.25 DSCR I've usually been quoted I have to put down 40%. (I realize that I could go to another area with more favorable cap rates etc, but I don't wish to do that for various reasons beyond the scope of this post)

My question is if I keep shopping will I find a bank that will lend at a weak DSCR based on my global finances or are property finances always all that matters? I have been talking with local banks. I spoke with one national bank and that was a waste of time (they required 1.5 DSCR and 50% LTV)

So we are sure that depreciation taken in the past is taxed at 25%, not ordinary income tax rates?   Where does the ordinary income tax rumor, if it is that, come from?   Are there other types of assets where depreciation recapture is taxed that way?   It is definitely something I've seen in my life, somewhere...

 Which services involve me being able to delete people's accounts?   Obviously not Zelle or Venmo.  

I don't use one, it would be more work to supervise them, fix the mistakes caused by the fact that they just don't know all the facts as well as me or are too busy, inputted data wrong etc.   I also like that with turbotax I can prepare the return look at it, then make changes easily, all in one sitting.   Rental property tax law at my level is not that complicated.   It helps that I have an accounting degree and am an accountant myself, (but not a tax accountant), so I know what I know and what I don't know.    I have worked for other real estate professionals and as the financial accountant on staff have liasoned with the external tax accountant CPA and while I felt they were great for those businesses never felt like they would have added value for my own, smaller, simpler rental property business.    It is also a matter of meeting the right person (tax accountant) and someday if I do I may change!

My research so far has failed to uncover an electronic rent collection service where I have the ability to reject/stop unwanted payments.  EG to prevent tenant from extending an eviction process, extending a month to month agreement etc.   I would be willing to do some sort of quickbooks type thing where they can only pay for an open invoice, but they'd have to be able to pay by bank draft not credit card.  

Does anyone collect rent electronically and do you just live with the legal risk it entails if you get into a conflict situation?

Is there a way to avoid the tenant forcing a payment on you (eg to avoid an eviction)

Is there a way to avoid the tenant forcing a payment on you?   (eg in a legal scheme to avoid an eviction etc).  

Personally I wouldn't list until I had the final inspection completed.  I know you want to get as much revenue as possible as soon as possible, but construction is too risky and unpredictable and it will cost big bucks if you are contractually obligated and can't fulfill that obligation.

As far as I can tell, Whirlpool is the *ONLY* brand of coin operated laundry machine available from Home Depot, Lowes and it is terribly reviewed.  Sears also has a Kenmore brand, also terribly reviewed.  None available from Best Buy.   The lack of choices is atrocious!   

You can get a coin operated timer to work with any machine, but those seem to be over $1k and it is not clear to me that there is any particular trusted well reviewed brand.

Yup, that is the forum I'm posting in!   I'm just saying a separate *property management" meaning people who manage property they don't own for an owner client, might make sense.   Since there are forums for real estate agents, contractors and bankers, this might make sense too.   

I did find another post on this topic since posting, but it is mostly sidetracked by a discussion of whether one should get a real estate agent license.