All Forum Posts by: Todd Groom

I have a friend who owns one rental property and rents out a few rooms in his home. He is allowed to rent at least one room in his home legally per county rules. When he tried to report the income to his accountant when filing his 2019 taxes the account refused to accept the income. He said because he did not deposit it monthly as it came in it looks like laundering. 

I've never heard of this has anyone else? If he is not allowed to report the income then he's breaking the law by avoiding taxable income. At the same time, the accountant is saying he's breaking the law if he does try to claim the income. Any CPA's on here have some input?

Hey Guifre, thanks for taking a look. Yes, the number I believe already has the rate with flood or an estimation. The good news is we were able to negotiate the property down to $53k! So our numbers just shot way up. Also on the rehab portion, I'm guessing with my skills at finding cheap material and appliances along with a builder that lives next door we can come way under rehab cost. I am guessing $10-$15k. All in all, I think it will work out well. I am going to up the cap % as you said and see where it puts us as well as add all the new offer amounts and reshare. Please come back and take a look when I send it up. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

This will be a cash deal then a cash-out refi a few months later. The property is in a flood zone and floods often per the neighbors. The report is based on the full offer but we may be able to get them down a little more since it needs about $20k in work. We manage our own properties with an in house employee this is why I set the % to 5. It is just to cover his cost.

The home needs some TLS so I calculated the rough cost then added $5-$8k on top of that for things that may pop up. The HVAC is working great but was installed 2006-2008 so I put a higher % for capital expenses. Not sure if it is high enough same with HWH it is 2008. The roof is brand new but the neighbor said it is a FEMA roof and took them a year to finish it. So while it looks good unsure of it lasting 15 years. The home is built up some but one neighbor who has lived there 15 years said not enough. block frame home with only 2 ways for water to get in. So easy to sandbag up.

 One other interesting thing about this deal is they have reduced the price by $10,000 in just 2 weeks. So it seems they want to sell quickly. I was told he had 4 people in here over the last 10 years and I believe each was a rent to own deal that fell through. The last one was an 8-year deal. Armed with that information would you try to lower the offer or seeing its already a wedge deal just grab it before anyone else? When done comps in the area sold for $110k-$139k but this will be a brrrr.... Thanks

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https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2020_code/select_Geography.odn?fbclid=IwAR3w_grwaU2TylU4zba9Yz-U4Czt-cRFX4N48DNY0simJP7gZbH039eehbw

@Jay Hinrichs

We have a total of 3 properties and 6 units combined.

The 5 apartments all paid. 2 are full rent and 3 are section 8.

The Daytona house is behind but for other reasons. Odd cause she’s always paid with in reason 13 years now. But I still offered to help even though just because she’s been there so long. If I can get help from government I told her I’ll pass it along to her. Worth being good to good tenants.

At a time like this I’m living section 8. Closing on another multi family property tomorrow. Will put me up to 3 properties, 7 units since March. And my friend has 2 properties, 2 units and partnering with me on the multi family tomorrow.

Bring on the foreclosures we are ready.

I wasn't sure how to even search for this question. Currently, we are using Stessa and Cozy for our units. We have at this time 2 properties with 5 units with the first owner. We are purchasing a third property that has an additional 2 units that will be shared between two owners. Then the second owner also has a few properties of their own. This is a multiple part question I guess. 

First, How do you track basic business costs between all of the properties? If it's a property-specific purchase its easy, you just add that cost under that property. But if it is a shared cost say you purchase a bulk item like a case of caulking or a tool that will be used on both or all properties, how are you all adding that into your cost? Are you just picking a property to put it under? Or are you using software that divides it along with all the properties? It bothers me because if I add it to the property I'm working on today it throws off that properties numbers. Or am I just overthinking this?

Second, managing a single multi-family property with two owners. This is another tough one for me at least. So I own 2 properties and son half of one and the other owner owns 2 properties and soon the other half of one. He has his in Stessa for tracking as do I. How do we manage that 3rd split ownership property? 

Any insight from people who do this now or management companies would be nice. I don't feel we are at the stage of needing any sort of a management company and this is my sole job right now so I've got the time to learn. Thanks for the help.

Remember a lot of ESA's are fake and you can verify them by confirming the person who signed them is licensed in your state. You can not call the specialist or doctor directly but their board information or business info will be registered with the state. I don't know how to post documents to my profile yet or if that's a thing but 

I just made a 4 page ASR package based off of another site. I'm happy to send it to anyone who wants it. The first page is the tenant's official request for accommodations. The second page is a page for the doctor or professional stating what the tenant is requesting and giving them a little info as to why we the landlord are asking for it. the 3rd page is the ASR with simple yes-no questions. the 4th page is the approval or denial with what information was considered as well as contact information if you want to allow the 2nd review if a larger company. 

 Also, keep in mind if it causes an undue burden on you or is too costly you can deny them. for example, if your insurance company says that dog breed is on the ban list then you need to find out how much it will cost to insure them. if the rates go up because of the dog then you can deny them based on the undue burden. 

Heres a link that helped me write the form.

https://www.rentecdirect.com/blog/service-animals/

@Woodly Tisme count yourself lucky at 4.1. We just got a call late last night from my guy. He was calling to warm us about these crazy inflated rates. 4.9!! I was blown away like wth? He said the same thing. The bank have such a high demand right now with so many loans they can’t keep up so they just raised the rates. It’s simple business really. When you have a product that’s in demand and you’re at full capacity raise your price until demand levels out

As far as a time frame on when these will go back down we have no idea. He said it could be tomorrow or it could be next month. Sucks for those like us in the middle of a deal. We are now street Hong this out trying to get a lower rate. But yes I too assumed we would be around a 3-4% rate.

@Jon Abadia also I forgot to add. One other thing we have done on several properties was just add a price to each repair and knock down the sale price by that amount. Then we have our guy go do the repairs this way we know it’s done. This we do mostly with larger items like say the roof need repair then we would ask them to knock off a few grand. Or HVAC etc.