All Forum Posts by: Tamas Z.

Oooo, the insurance thing makes sense. I'll have a look at it.

Thanks for the replies!

Hi all,

I've been having issues with a homeless guy who turned the back of one of my properties into a makeshift home, and has caused property damage. I have a commercial property where one (unused) entrance is to the back alley, and that entrance is nicely hidden and covered by a little roof. Prime real-estate for a transient, as it turns out.

I first heard about it when the tenant complained that the guy put a mattress on some vent, and it broke a cooling fan, resulting in a few hundred dollars to get it fixed. The guy also has a candle, and I'm terrified he'll accidentally burn the place down one night. Long story short: I want him out of there ASAP.

I've had relatively little luck with the police. Basically, if he's not around, they can't arrest him, and he knows when to disappear. I've even moved all hist stuff out of the area, and barricaded that unused entry way (plywood and nails), and posted no trespassing signs, only to have him tear it all down and move back in before the next morning.

My biz partner gave the police an earful, and they said they'd patrol the area more frequently (stop by whenever they're around), but I'm not too confident that anything will be done.

So, I'm brainstorming for some options. What can I do, and what am I allowed to do? I'm pretty sure I can't put itching powder or anything like that haha.

How much does it cost to hire a security company to do one daily and one nightly patrol of the alley? And if I do pay for such a company, is there anything they can actually do? I mean, if all they do is call the cops and wait 3 hours for them to show up, and hope the guy doesn't disappear, that's not that useful...

How about other surveillance options? If we get camera surveillance in the area, what will *ACTUALLY* happen if they detect trespassing?

Are there contractors that specialize in this kind of thing? Like maybe I could hire a contractor to go and fence off the area properly, but it would have to be a contractor who won't just leave if the guy is there, but who will call the police, wait for them to show up, throw out his stuff, and then finish the job. Is that kind of option commonly available?

Thanks!

Hello,

I own a commercial property, and am wondering if there is a line in the sand as to when I am required to get a contractor with a commercial real estate license. For instance, if I'm doing anything mission-critical, like getting a new roof, of course I need a commercial contractor.

But what if it's a 'little' job, like installing a fence with a gate around some small area I want to protect? Is there such a line in the sand, or am I basically stuck with having to go commercial (i.e. more expensive for the same-ish quality), no matter how menial the job?

Thanks!

Thanks, everyone! I've been meaning to find a CPA to look over my tax situation. I've been delaying it because I haven't really had a tax situation so complicated that TurboTax didn't easily handle it. Even here, if I know the right cost basis (and it would only differ by a handful of thousands), I can figure out depreciation trivially. Hopefully, paying $800 or so for next year's tax season instead of $80 will be worth my while. Once isn't the end of the world though. :)

Thanks!

One quick follow-up: Does this include personal legal fees prior to starting the official process? For example, there are some administrative legal fees I paid early on (notably: Having a lawyer draft up the PSA, and setting up my LLC which holds the title).

If I ever get audited, what will the be looking for?

Hello,

I have a newly-purchased residential rental property, and I'm just now setting up my financial tracking for it.

What's the correct number to use as the original cost basis, for depreciation purposes? I'll be splitting the building/land using the public record county tax ratios, but I'm not sure about the initial total to use.

Possible options are:

• Property value shown in the public record (same place that has land/building split visible)
• Amount shown on the appraisal that my lender ordered
• Amount of money I put into it all (effectively sale price plus all the fees I ended up paying)
• Amount shown at the bottom line of my settlement statement

Which of those is correct? My purchase price was lower than the property value shown in the public records (deal between close family friends), and so was the appraisal. Frankly, the appraiser seemed super-lazy, and I bet he just put some number a bit higher than the purchase price so the sale goes through and he could go home without doing any actual work. :-/

Ideally, I'd love to use the county public record as the initial basis, as that would be the highest number, resulting in the highest depreciation deduction.

What's the correct thing to do here? :)

Thanks!

Thanks! I've actually got a pretty good relationship with the bank I used for a commercial property a couple years back, and they're looking at options. :)

@Tim Milazzo 1mil, and I can probably put down ~25-30%.

Hey @Andrew Postell, thanks for digging that up, I really appreciate it. I guess that second part is the clause that says "you can't just accept a new tenant that would start running a business", addressing my "it's no different" thing from my OP (point 2). :)

I do have one prospective lender who mentioned this would be a portfolio loan. That must be what they were talking about.

Thanks again! Hopefully I can get something reasonable.

@Chris Mason I thought the commercial/residential thing has everything to do with the zoning. The place is in a residential neighborhood.