All Forum Posts by: Jeff D.

Supposedly an added layer of liability protection.     And in my state,  a little more privacy.   But not much.     I learned of it just from researching around online.      I guess it's not as common as i thought.          

I have rental property held in an LLC (#1). The sole member of that LLC is another LLC (#2) of which I'm the sole member. So since single member LLC's are disregarded, then LLC #1 is disregarded and it all passes to LLC #2, which is also disregarded, then on to my personal Schedule E right? As if LLC #2 didn't really exist? Have I got that right? thanks!

So the company that rents the box truck to tenants to move their stuff is ethically to blame.   And the company that rents the crane to the construction company that built the apartment building they're moving into is ethically to blame.   And the bank that loaned the tenants the money (and basically owns) a portion of the car they drive is ethically to blame.   And the parking lot owner that rents that parking space to them downtown each day they work is ethically to blame.   And the cellular provider that rents them space on their network is ethically to blame.    And so on and so on and so on........          If you don't like renting someone else's stuff,  then save up enough money to buy your own stuff.  Until then stop faulting the person who own's the stuff you're renting when you don't pay your rent,  or mis-use their stuff.      

i've been wanting to pursue a Freddie Mac refi on an apartment building.   But I have heard it takes forever.........like 6 months or so.    Is that right?

Um......what ethical dilema??

I have been a landlord for 30 years.  And a renter for years before that.    I've seen it all and i know both sides.  

This moral dilemma mentality is a dangerous slippery slope that leads to extremely biased and unfair regulations like we now have in Portland,  where if I need to have a tenant leave my person property so I can do an extensive remodel of the unit, (or because I have just had it with a bad tenant),   I have to give them 90 days notice and pay them $3500 "moving assistance".    

Because you rent your private property to a complete stranger does not make it there's indefinitely after they move in.    You still own it.    Never lose sight of this basic fact.  And you should not have to jump through hoops and pay the person lots of money to get your property back either.    IT has nothing to do with religion, ethics, or how good a person you are,   or even how "business-like" you are.  If you rent a car,  is it yours to rent indefinitely?  

Beside that basic fundamental fact,   also consider that the majority of tenants out there know that as long as you "rent" and don't own,  you can be uprooted at any time for no reason.  That is the inherent risk built into renting someone else's property,  it's common sense,   and everyone knows it.     If tenants are shocked when they find they have to move out for whatever reason,   they are living with their heads in the sand.       

I'm in the same boat. Lots of equity in N.O.O rentals. Currently shopping for a HELOC myself as well. So the private money route sounds enticing. (and the 9 month bridge loan). Where would a person go to shop for private money with those rates? How did you find yours?

I have rentals and flips.   I would avoid a rental situation that had 3 bedroom units.   Yes,  you narrow your market down to families, and it will take longer to rent.   Or roommates...where roommates are going to revolving.  And my feeling is if you have a 2 bed right next door to a 3 bed in the same 'hood, the 2 bed will rent for more psf.   Not more overall obviously,  but more psf.   The 3 bd is going to stay rented for longer periods than a 2 bd though.  That's good and bad IMO.     

 In terms of value, however, its the opposite.      I am currently starting a flip that I am converting from  2/1 to 3/2 solely because the numbers work out way better.  Roughly $10k to convert,  $30k additional price.  Not scientific, just based on current comps.   

I live in Portland,  and have designed, built, converted, and still own several plex's.   I would disagree with the more expensive to build theory.   The building can be done for less than new  IMO.    Your problem is the land.   Anything zoned for 4 units in a decent rental  area, (even a mediocre rental area)  is likely already gone or way too expensive.   

What about, for example, a laundromat - purchased w/o any existing debt. Just a bunch of 20+ year old washer and dryers. And repairs are occasional at $150 here and there.

If FMV is established, Can the 20 yr old eqpt still be depreciated? Or is it done? Can that whole FMV the "basis" of tangible assets and the whole lump sum be depreciable just like a "used" 20+ year old rental house can be?

can you elaborate on this? how are they avoiding the penalties? If a person doesn't draw any money out for themselves all year, can they avoid the penalties?