All Forum Posts by: Frank Adams

Send a written notice, although a month to month tenant she does have rights. I'd make a deal to have her stay there during the showing (might take a long time) with a "deal" of some kind on rent to keep is "show ready". I would do this in person, and in writing. Guarantee a 30 day window for moving.

Frank

Paint is one of the best investments you can make.

Why would you even consider refinancing in 6 months if you're going to sell in a year? I can't imagine a scenario wherein that makes any sense.

Frank

The first sites I go to when I log on are;

Salon dot com
Realclearpolitics dot com
Insideautomotive dot com (it's not just an automotive site, it has some of the best links to other news sites)

I get the printed edition of "The Economist" although I may drop it as my local library carries it. I always read "Rolling Stone", "The Nation", "National Review" and a few others that I read sporadically. I realize most of these are not "news" but more opinion.

Frank

Yes you did! One of the most inciteful REI books ever written. Author is a guy named R. Warren!

I recommend everyone buy a copy, or better still, enough copies to fill all of your Christmas stocking, NOW.

I've been sitting on the sidelines most of the last 18 months. I've watched prices soften, a lot, as inventories increased and I really don't think the "bottom" is absolutely here.

But, I'm now actively looking again. None of us know the true bottom, and just like selling at the absolute top, buying at the absolute bottom isn't necessary to make your money. It's more than enough just to be close.

BTW, for the last 2 months almost all of my spare time has been spent volunteering in my local campaign headquarters.

Back to work now.

Frank

It's been a long time since I filled out a CA form 520, but I'm pretty sure that it, and every other state form, just take the INCOME line from your Federal return and move it onto the state form.

If the AGI on your 1040 has nothing on it to reflect the income, your state form won't either.

You say the lot is "maybe" worth more. Find out for sure as it will cost you $500-$700 (probably) to set up and comply with the 1031 legal requirements. If your gain is small enough, and your tax burden correspondingly small it may not be worth the hassle and expense. Sometimes it's easier to just pay the 15% FED and (IIRC) 9.3% MAXIMUM state tax.

Frank

Doggone it; I miss a few days on BP and I miss a get together!

I couldn't have made it anyway, I have rehearsal for a play, I'll catch the next one.

Frank

I like your concept, but have to disagree with your pacing. Be careful that you don't go too fast, and get rid of your outside debt. One way that I found to do this is perhaps sell a higher proportion to retire debt.

Six in one year, from a standing start, can begin to tax your time and energy. I like the idea of lower price properties because (I know this will sound like it contradicts the first paragraph) you can own MORE props, thereby spreading your risk.

One question to ask yourself when evaluating properties/deals is this: What happens to ME if this unit, and every other one quit paying at the same time? Statistically it's rare, but ask people who owned multiple props in Flint MI when GM tanked up there, ask me what happened to me in Houston in the early '80s.

It's not likely that all of your tenants/buyers work for the same employer, but when a large employer or three goes bad, there is a huge ripple effect throughout the local economy.

Frank

I don't know if you've got really screwy insurance rules in MI, or what your net worth is, but reading your post you are WAY OVERINSURED. An umbrella means that your various loss exposures are all put under the same umbrella, not that you need a separate umbrella over each exposure.

Unless you also have an umbrella over each of your vehicles and boats, I'd say you're UNDERinsured.

Look at your net worth, assets minus liabilities, that how much liabilitiy insurance you need. I've found that most LLCs that I've looked at have been a revenue generator for an attorney rather than effective protection for the landlord.

I never had an LLC for any of my properties, 16 SFHs at one time. I've had a one million dollar umbrella since my net worth went over $500K and a two million policy for the last five years.

I sleep just fine.

Frank

I always charged both. However, check your state laws and or court rulings. There are often limits on how much you can charge.

It's often a moot point anyway. If they can't pay the rent they're probably not going to pay the late charges, if it comes down to eviction.

In the case of "slow payers" I found it was best to point out the dire consequences of late payment during the interview. Once they knew that I meant business the habitual late payers rented from someone else. If it was a reasonable amount they would sometimes just always pay it rather than figuring out a more rational solution. If it's too high they won't.

Frank