All Forum Posts by: Aubrey Ford
Aubrey Ford has started 19 posts and replied 50 times.
Post: Purchasing community well
- Investor
- Atlanta
- Posts 50
- Votes 15
My rental property is served by a community well that sits on the adjacent lot. The owner has notified me that she does not want to be in the water business anymore. Her husband purchased and ran it but he passed a few years ago and she does not want to do it any longer. So I now have to either drill a new well on my property or she has offerred to sell the land and well system to me.
The estimates for new well likley would be $10-15K. She has said I can purchase the lot and all the well equipment for $20k. I can decide later if I want to use it just for my property alone or continue to sell water the neighborhood. It is way overkill for one property. The holding tank alone cost about $13k to give you an idea of size. There is also the potential of putting a small or manufactured home on the same lot and adding another door to my portfolio. (if the zoning gods allow it) . I do not have a lot of info as this time and was hoping for any sage advice out there on what to be wary of in this situation. I know I need someone to inspect the well, maybe an appraisal of the land.. but what might I be missing?
Post: Tenants moved in their parents without permission or discussion.
- Investor
- Atlanta
- Posts 50
- Votes 15
Quote from @Henry T.:
Sorry to say so after the fact, but you need to learn some landlording basics.
Never give the keys to anyone without a proper signed lease.
Download the landlord/tenant handbook and read it all.
https://dca.georgia.gov/housing-choice-voucher/landlords/geo...
Completely agree. what I failed to mention is The tenant is my daughter and her boyfriend... otherwise I would never do a month to month verbal lease. It's only after she started consistently being latre with her rent payments I decided to I need a written enforceable lease. Good news is since it is my daughter I was able to have a heart to heart and the issue has been resolved. though I am still waiting on them to sign the lease :(
Post: Tenants moved in their parents without permission or discussion.
- Investor
- Atlanta
- Posts 50
- Votes 15
Quote from @Brian Teeter:
Unfortunately, you may have a hard time enforcing anything about "guests" unless policy/procedures are outlined in your lease. Further, may be difficult to compel the tenant to comply with your wishes if you are currently in a MTM situation with them.
At this point, the best path forward to compel them to cooperate is to give them notice to vacate and simultaneously give them an option to renew, with a new lease agreement. The new lease agreement should outline terms for guest stays,etc.
Makes total sense to me. before this whole situation I had presented them with a written lease that clearly outlines the rules for visitors. i.e no more than 5 days in a row no more than 20 days per year... If we can not negotiate something this week. My plan is to give them a 60 day notice (GA requirements) of termination of their M2M lease agreement and they will need to renew with a written lease or vacate in 60 days...
Post: Tenants moved in their parents without permission or discussion.
- Investor
- Atlanta
- Posts 50
- Votes 15
I have a one bedroom apartment I rented out to a nice couple back in June. Last Monday they informed me that his parents are staying with them for a "few days" It has been a week and they have failed to offer any end date. Based on the story they told me it sounds like the parents are effectively homeless and I suspect they have simply moved them in without permission. I have expressed my discomfort with them staying more than a week. I'm not certain how to address this. Unfortunately the lease is a month to month verbal agreement. I did send them a written lease ofr signatures before the parents showed up, but they have not signed the lease yet. Can I have the parents trespassed? or do I have to go through an eviction process of my tenants... . anyone been through anythign like this?
Post: How much of the house can I consider as rental for Tax purposes?
- Investor
- Atlanta
- Posts 50
- Votes 15
Quote from @Ashish Acharya:
@Aubrey Ford Yes, you can include the rented room upstairs as part of the rental for tax purposes. The way to handle it is to allocate expenses based on the percentage of the home’s square footage used for rental purposes.
Here’s how it works:
- Calculate Rental Percentage: Add up the square footage of both the in-law suite and the rented room, then divide by the total square footage of the house.
- Apply This Percentage: Use this rental percentage to deduct a proportionate share of expenses like repairs, utilities, and mortgage interest.
This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.
Post: How much of the house can I consider as rental for Tax purposes?
- Investor
- Atlanta
- Posts 50
- Votes 15
I bought a SFR with a completely built out In-law suite in the basement. My tax person says I can deduct a % of the repairs I've done based on the SQ Footage of the basement unit. Seems clear enough. However I am also sort of house hacking the main house (upstairs). Can I consider the tenant of the one room also a "rental"... and include the SQ footage of that room as well in terms of deductions for repairs etc? How do House hackers handle these types of things when you are renting rooms.
Post: What to do? 1031? Sell? continue to rent?
- Investor
- Atlanta
- Posts 50
- Votes 15
Short story I have a SFH that I rented out and the tenant is essentially abandoning. They can no longer afford the rent due to a divorce. Now I am trying to decide to sell (take the long term cap gains hit) versus a 1031 exchange (never done one) or just relist it.
Current Mortgage: $75k, Appraised at $160k 4 months ago. Rents are at $1100/mo.
Sell option: I could use the cash to help fund a house hack I am in the middle of. It would let me finish that 12+ months sooner.
relist option: it makes about 6% CoC but I am leaving a lot equity that I feel I should tap into. (if I refi and pull out the equity it makes the CoC negative for the next 3-5 yrs)
1031 option: sounds good, but I am concerned about finding the right property in the timeframe and my inexperience with this creates risk.
Post: Landlord insurance for multiple properties
- Investor
- Atlanta
- Posts 50
- Votes 15
Quote from @Ana Vhan:
Quote from @Scott Bloom:
You can get a commercial grade policy from major carriers where they lump the risk across multiple properties into one policy, reducing your premiums. One challenge to manage is being able to clarify for lenders on those rentals (if you have them) which amount of the premium should be paid for each rental so that they do not include the entire premium into their escrow analysis, inflating your monthly payment on that rental.
Other than lowering premium, why would you put all the rentals in one policy? If you had to use insurance for one rental, that would push the premium up on the whole policy, wouldn't it?
Also, would I need an umbrella policy if I go with commercial grade policy?
I am in a similar place. I have 4 rentals and one of policies just went up 65%! I am now shopping to replace, but curious where I can learn more about the pros and cons regarding a policy like the one mentioned.
Post: Is this deal worth it or are the margins too tight?
- Investor
- Atlanta
- Posts 50
- Votes 15
*This link comes directly from our calculators, based on information input by the member who posted.
Post: 18 months into my REI journey
- Investor
- Atlanta
- Posts 50
- Votes 15
Quote from @Cody Lekberg:
That's a great strategy, Aubrey. Where is your primary residence? I'm here in Macon. Let me know if I can be of any help!