All Forum Posts by: Bill B.

@Eric Stiegel

@Dave Foster

Eric, usually you aren’t allowed to take cash out with paying tax on it. (Boot)

But we’ll need Dave’s answer because you’re adding more debt are you ok? Or do you need to put the entire $262k in to the deal and then take out a heloc or 2nd mortgage to avoid the taxes?

He’ll know the answer, I’d be guessing. 

I’m sure Thomas is kidding,.  Try not responding to repair requests (management) or jacking the rent 20% even if it’s still in the average rent range (price), and any of 100 items regarding quality, they will all get the tenant to move.

I'm only dealing with SFR so your mileage may vary but 4-10 years with a $800-$2500 turnover. (Did the carpet survive, are the appliances still acceptable move-in condition, misc wear and tear)

I start most tenant with a year lease and if they work out the new walls are 2-4 years usually at a time. We get mostly families with kids that don’t want to disrupt their lives with moves.

the Poster needs an umbrella policy anyway right? They are 100 x more likely to do something personally that gets them sued than have something happen at the property over their insurance limits, maybe 1000x with 11 kids. If they own the llc they’ll just be giving the llc to the person they hit In a car accident, or the family of the kid that drowns in their pool, or gets hurt at their private residence. 

I’m sure someone can say “no legally you can do this and totally screw the victim that deserves the money by putting in an llc owned by an llc owned by someone else” or some such thing. But maybe the umbrella is lower cost and better protection and the victim is made whole. 

They dot have to worry about separate  taxes, separate bank accounts, more expensive loans to llc versus personally, etc. 

@Ki Lee

Yes you need a third party, a “QI”. I believe the average cost is $1000-$1500 but talk to @Dave Foster, he is a QI and can give you answers in regards to costs.

As James mentioned. Could the tenants have required you to pay for a hotel until you provided a place to live? Could they have asked for a refund of rent paid for the part fo the month they couldn’t live there? Seems like you could have easily been on the hook for $1,000 or more. I think you can get rid of the cars for free or maybe a slight profit? Certainly less than $1,000. seems like you won this time. 

Do you have lost rent insurance? If not you may want to just sell the lot and move on?

Once you own them and have the right to get rid of them can you donate them to a scrap yard? Did the tenants have insurance on the cars? If so their insurance company may own them?

I’ve never had to deal with termites but should it bother you they don’t want to know? Supposedly if they already know they have to tell you. 

Do you know what the permitting department will do with the undermined addition? Will they require you just pay fines and permits? Or open the walls or prove it was done right and then rebuild it? Or will they require it’s torn down?

A realtor could chime in on if you can ask the seller for a list of known problems? (Should be on a disclosure form somewhere?) just in case after the purchase you discover a problem that they obviously should have known about, like the leaking pool equipment. 

We have the tenant replace filters that’s it. But that’s Vegas. Maybe you need more work on them in Texas? 

20 years and 13 properties (24 ac units) has amounted to maybe six - ten  $240 repairs? (Dual run caps seem to fail here.) and 2 old water cooled Freus units had to be replaced.  Don’t see how paying for 48 inspections times 20 years coulda saved me any money unless they’re free. 960 inspections or $1400 - $2400 in repairs which the inspections probably wouldn’t have prevented. ( I knew the water cooled units were on their last leg when I bought the property as freus had already gone out of business providing warranty work.)

What company doesn’t have a credit card?

How did they pay for travel before vrbo & Airbnb? They didn’t write checks to hotels. 

It must be a local company correct? Since the airlines aren’t taking a check  

A stolen company check will still cash andmight not be caught for 30 days after the next statement period ends?

@Brad Penley

Wow yeah$12k/year on $360k. Not to good, but not negative in SD, that’s saying something  

That’s most of the numbers. Except: What’s the profit? (What did you pay? To determine how much capital gains taxes would be due.) and how many years have you been depreciating that amount? (Depreciation recapture due) Just trying to make sure the 1031 part is worth it as opposed to just selling and then finding your next target.