Yes I am planning on raising the rents.It is an A location with older buildings.The previous landlord just became burned out and let things go with tenants paying full amounts and not fixing deferred maintenance.Some of the tenants complaints have been repair issues.I told them rent issues and repair issues are completely separate.They are expected to pay rent or will be evicted.Most of the lease are coming due in September.I am not going to give them 1 year long term leases at a reduced rate.So they have to invest in the process.New roofs are going on in the next 1 to 2 weeks along with other improvements.Currently many of the tenants do not have security deposits.They did originally but the old landlord gave them a credit off of back rent owed and they used up most of their deposits so resigned at zero deposit.Some have quoted they want new carpet.I will look into it but want a security deposit from them to do it.So a lot of this is them trying to see what they can get away with which will be nothing.We went out and posted that we are the new owners etc. then a few days later went out again and gave a note and had them sign an acknowledgement form along with the copy of the lease they signed before stating the payment they owed.Slated to go out and pick up payment on the first.When kind of repairs did you promise to make??

The $45 kitchen faucet replacement would be expensed, whereas a new $300 ceiling fan would be depreciated over five years.Many landlords choose to just depreciate the bigger ticket replacement items such as water heater, kitchen and laundry appliances, HVAC, or new flooring.

You could probably get away with putting the security deposits for that LLC's property/properties in the same account as the LLC's rent/expenses account, but if you ever had a tenant dispute go to court the tenant might push the issue that you didn't follow state law.

Now I could get away with it because I do not know any better, I am just a contractor :) - (I know there are rules about putting up a payment so be careful when/where you do this) - but it was amazing.People have no idea how cheap it is to buy right now.

It can be something small, like a fancy dinner or if the transaction went really well then it can be a weekend getaway.

Unless someone overlooks the fact that you didn't sign the document (unlikely with the major banks), you're not going to get away with this.If I were you, I'd just decide upfront if you want to sign the document or not, and if not, approach the offer as an investment, not an OO.You especially don't want to get a reputation as someone who is trying to game the system, either with listing agents or asset managers...

I took a contracts and liabilities class (the only legal training I have aside from fighting and winning a traffic ticket for running a red light on a bicycle) as part of the cirriculum for my civil engineering undergraduate degree.

I truly don't know if I was able to get away without it but it was implied that without belonging to a local association, I was unable to be labeled 'Realtor' and get access to the MLS.

Sorry Jonathan, I was so busy trying to get the picture in my post that I forgot the numbers.Purchase price $62900Closing cost on purchase $3100Total = $66,000Rehab= $45000- I just rounded up to the nearest $1kHolding costs- We bought cash so holding costs like light and utilites were under $100Realtor fees +5% closing cost help $19,700Sales price $197,000Expected profit $66,300

I would also agree about bigger ticket items like furniture or electronics.