All Forum Posts by: Account Closed

Are you a corporation, LLC, individual? If you hire someone typically they are the ones providing this information, but if someone is paying you, then yes they need this information for tax purposes.

BTW - I would say your SS# has been hacked so many times and is on the black market already this is why we monitor ours through other parties or just lock it down at experian and other agencies if you are concerned about it.

Your new PM is correct and the old ones were wrong.

The property manager must have your social security or tax ID number on file. They will issue an IRS Form 1099 in January, reporting your total taxable income to you and the IRS. Tax law requires it. The IRS doesn't trust you to report accurate information, so the 1099 from the property manager is checked against your filing.

Any company that does more than $600 in business with you should issue a 1099.

Bryan,

This is one of the biggest challenges when investing in C/C+ areas, and it’s even more amplified in D-class neighborhoods. In my experience, success in D-class areas almost always requires being local, extremely hands-on, and self-managing. It’s probably not that you’re “small potatoes” to your PM, but more a reflection of the nature of the market itself—low rents, properties with higher maintenance needs, and tenant issues.

These factors make properties in these neighborhoods more difficult to manage and generally less profitable for property managers. As a result, this isn’t the kind of market that attracts top-tier PM talent.

Your best solution might be to either:

1. Take on self-management if possible (and if you’re willing to put in the time/effort).

2. Find an individual you can trust to handle these properties, set up very specific instructions and processes, micro-manage them initially to ensure standards are met, and compensate them well to make it worth their while.

This approach requires more oversight on your part but can yield better results in markets like this.

I just wrote about this on another thread.

Whenever I see properties that are being sold by an owner who did SROs(renting by the room) they are usually in rough shape. The better ones seem to have a dorm room structure of cleaning and caring for the units with chore assignments. It does seem like the owner is less of a landlord and more of a glorified RA.

If you can find the right tenants and live there as long as possible to make sure care is given to the space, I believe that will go along way. But this is really up to you doing the work. Realtors don't typically like to do rentals under the $2k price point due to how little money they will actually make on the sale. At least that me....In Chicago. 

This structure seems to work best for house hackers looking for roommates in their friend group to help cover the mortgage. We see this a lot in the collegiate markets of Chicago. There are specific facebook groups for these types of housing. I'm sure Austin would have something like that. There's even a group here for people wanting to rent from smaller landlords...verse lux buildings.  

Just be careful about the lease structure when you get ready to sell. Having leaving leases line up so that any future owner can easily move in or even get financing is ideal. It will help with your exit strategy...down the road. Definitely ask your realtor in your market about that. Please give advise on here based mostly on the thing they see in their market and experience.

I hope this helps. Best of luck! 

Someone should absolutely have a lease with the tenants and you should really have a contract with the realtor.

You need to know realtor commission, length of agreement, etc. Get everything in writing to prevent misunderstandings.