All Forum Posts by: Steve C.

Check your local landlord tenant laws, in my state they need to have a contact number in case of emergencies. In my case I used a yard sign that went to a google voice number with a VM describing the property for prospective tenants & once signing a lease, the tenant was given my personal cell. You could always use a second number or telephone for business, i'd say it's a personal preference & may depend on the personality of your tenants. just be sure everyone is treated the same to avoid potential discrimination issues if things get ugly.

It applies to all residential rental property, is my understanding. Mind you it does state "in case of emergency" so possibly you can work out a per-emergency payment with a local PM.. Not sure, I only self-manage. Google NRS 118 & you can get the full landlord tenant laws for our state. Well worth reading over at least once with a highlighter prior to diving into a market, and certainly prior to putting no together any leases.

Las Vegas does have fairly landlord friendly laws, Chicago proper, I've heard has quite the opposite. One thing to consider if you're investing at a distance. It's also true the NV has no state income tax. If you're looking to do vacation rental, the property must be in Las Vegas proper, as surrounding Clark County does not allow it. Another thing to consider, from a tax perspective.. SALT cap tax is going to whollop CA this April. If you have the ability to live 6 months & 1 day in NV and avoid that, your realized earnings & savings may be enormous if you have the ability to tele-commute with any day job. I am not a lawyer or tax professional, these are just things I've heard. Though I am a Realtor and self-managing landlord in LV. As far as the "60 miles responsible person" goes, this is true. See NRS 118A.260  Disclosure of names and addresses of managers and owners; emergency telephone number; service of process. 1.  The landlord, or any person authorized to enter into a rental agreement on his or her behalf, shall disclose to the tenant in writing at or before the commencement of the tenancy: (a) The name and address of: (1) The persons authorized to manage the premises; (2) A person within this State authorized to act for and on behalf of the landlord for the purpose of service of process and receiving notices and demands; and (3) The principal or corporate owner. (b) A telephone number at which a responsible person who resides in the county or within 60 miles of where the premises are located may be called in case of emergency. 2.  The information required to be furnished by this section must be kept current, and this section is enforceable against any successor landlord or manager of the premises. 3.  A party who enters into a rental agreement on behalf of the landlord and fails to comply with this section is an agent of the landlord for purposes of: (a) Service of process and receiving notices and demands; and (b) Performing the obligations of the landlord under law and under the rental agreement. 4.  In any action against a landlord which involves his or her rental property, service of process upon the manager of the property or a person described in paragraph (a) of subsection 1 shall be deemed to be service upon the landlord. The obligations of the landlord devolve upon the persons authorized to enter into a rental agreement on his or her behalf. Best of luck!

Good to know. I've been poking around this idea as well. From what I've found CU's don't like them because their risk of you walking on some non-owner occ debt is greater. Heard the same from a few big banks.

*No loan* as for after tax or tax deferred.. Would depend if your IRA is Roth or traditional. It can be a difficult assert to value, so may be better if IRA is Roth.

Reading a great and very detailed book on this matter right now. You can't get a loan for an IRA, nor can you manage the property or benefit from it (the IRA can). One option you can do is partner with another person or person's IRA so LO loan is needed. Read "The Checkbook IRA" by Adam Bergman. Long and very dry read for the most part, but very complete!

Thank you @Doig Phillips i was unaware of of that. Of course.. I wouldn't want to end up owning a rental way up near Reno or somewhere in between, as I'm still working FT job, pretty new to Landlording and for now want to keep my portfolio near by for self management as I learn what I would eventually want out of PM & how I'd like them to operate. I want to stick near my good Ol Clark county for now, but in the future that knowledge may come in very handy! Thank you!

Thanks Amy Herzing that makes me feel more comfortable I'm right decision! And thank you @Steve babiak I was pretty sure, but always worth confirming as I'm looking to put a tiny bit of capital to work. John Underwood I agree and would love to do that, but here we are a tax lien state, so the probability of me ending up with a property from a tax lien is around 1-4% from my research. I still plan on buying some, just not with this money to pay off the MIP, which is a definite savings over 12%. @Bruce Lynn. Yes I'm sure. We originated the note on 11/12. I really want to keep that 3.5% note! I hate paying down principle rather than investing, but in this case it looks like it will return better savings than I could get in gain with the same cash. Really appreciate you all chiming in with your experience & knowledge, thank you so much!!

Thank you Caleb Heimsoth I also hate it. Just wanted some feed back from others who know what they're doing prior to plopping down over 3k to get savings, ya know? 😊 When I look at the appreciation putting down all I had at the time for only 3.5% I know it was the right choice.. But I am VERY much looking to kill it now that we've been able to improve our situation.

Hello everyone smarter than I.  

Here's the situation; I've one rental SFR at the moment that cash flows fairly well. I'm saving 30% of my income from one job and all my income from a second to have more money to invest, whether it's in another property, tax liens, etc. The rental is our old primary with FHA MIP still on it, though we're about $3,346.07 away from paying down to 78% of the original purchase price when my loan servicing company will have to legally remove $123/mo MIP payment. I've have many discussions about trying to remove at 80%, or 78% of the initial appraised value and they're not having it, though I don't want to refinance as it's at 3.5% over 30 yrs. This MIP is $1,476.00 over the next year (when it falls off naturally in 8/2019) that is only benefiting my note holder. If i'm going to be in a 22% tax bracket, that payment that doesn't benefit me will cost $1,800.72 of pretax income over the next year I'll have to earn, pay that 22% on, then pay MIP with the remaining $1,476.00.

So if I look at the money I'll have to earn, over the amount I'll have to pay ($1,800.72/$3,346.07) I'm basically getting a 53% return by using that saved money to kill the MIP, correct? If I've been saving to re-invest and after paying down the principal still have enough to cover maintenance, vacancy, etc. over the next year, this strategy should allow me keep more money than using that chunk to buy tax-liens at 12% locally, then of course need to pay taxes on my gains. ($3,346.07x.12=401.52, 401.52x.78=313.19)

To dig a little deeper.. here is another question for you. My EA who's been doing a great job on my taxes for years told me MIP is not going to be tax deductible for 2018. Is principle pay-down going to be tax deductible? For example I've already made additional payments of about $2,500 again for $1,400 and now maybe for $3,346. I don't believe so, only the mortgage interest, depreciation, improvements & property taxes will be tax deductible (note generated in 2012), correct? Basically I'm using most of the profit/ cash flow from the property this year to pay down the note & kill MIP.

Any insight to my mis-steps in logic or experience you've had in a similar situation would be greatly appreciated.  We've just had our first son & I want to be sure I'm doing everything I can to bolster our financial situation & ramp up to be sure he's always taken care of.  

Thank you all for any feed back!

-Steve C.