All Forum Posts by: Greg Martin

Hey everyone,

This is probably a basic question, but I couldn't find an answer on here.  I came across a seller who wants to sell her property, but she thinks that she can't sell for some reason.  She said that a CPA a few years back did something for 27 yrs, that is preventing her from selling, even though she would like to.  

This sounds like depreciation to me, so I imagine that they are telling her she'd have to pay tax for the depreciation recapture.  Is there anyway to avoid or limit this depreciation recapture?  Would buying it on owner financing and spreading the pymt out over a number of years impact when the depreciation recapture would be owed or how much would actually be owed?

I don't know if any of this is helpful or impacts the situation.  She does not have a mortgage.  I think she inherited the house, and she has been living there off and on for a period of time, but she says it was only the last 8 months that she's lived there.

Would the use of any entities - land trust, LLC, etc help? For example, if the current owner transfers the property to a land trust, and then I buy the beneficial interest of the land trust, instead of the actual home.

I feel like there should be a way to help this lady get out of the property, but she was told that she CAN'T sell the house by her current CPA.  Thanks in advance!

Thank you to everyone for your response.  Hopefully they get the utilities restored quickly and we are only talking about a couple days anyways.  I have reported with insurance, and just waiting to hear back from them.  I will try to update this as things progress, too.  Thanks again!

Thanks, Antoine.  It could be worse.  It could have fallen on the house, as the tenant stayed during the storm.  

I don't think the tenants have renter's coverage, though it is recommended in the lease.  I have fair rental value coverage in my insurance policy, but I don't know if it will apply since the tree didn't fall on a covered structure.  I wasn't going to make an insurance claim, because I don't think the other damage will go over the deductible, but I changed my mind on that, so we will see what insurance has to say about the whole thing.  I'm just curious if anyone else has had a similar situation and I want to make sure I follow the correct process.

Hey everyone,

I have 3 units right in the middle of where Irma went through.  Most things were fine, except a giant oak tree fell over.  When it fell, it took out the power lines and broke the water line below it.  The utility company said that they will take care of tree removal and fixing utilities, but they don't know when.  Currently 2/3 of FL is without power from what I last heard, so they are saying it could be days or weeks.

Tenants are currently staying with family.  What is my responsibility, if any, in this, or how should I proceed.  So far tenants are pretty understanding, but I know as time goes on, that could potentially change.

Thanks in advance.  I know none of us want to deal with natural disasters, but I'm sure it's a topic that comes up as property owners.

Hi everyone,

So I have a tenant and boyfriend that separated and she wants to be removed from the lease.  I read this post:

https://www.biggerpockets.com/forums/52/topics/222...

and I think it answered most of my questions. This is an inherited tenant from when we bought the property, so not everything was done the way I would have in placing them in the Unit.  The one main issue that I want to make sure of is:  On the lease, only she signed.  Both her and the boyfriend are listed, but the boyfriend never signed the lease.  She wants to break the lease now.

Basically I assume that he would have to be willing to break lease too, and pay early termination. Otherwise, they would stay until the end of lease or until eviction, whichever comes first.  Right?  Does it change anything that she is the only one to sign the actual lease?

Thanks!

Hey everyone,

Does anyone have a suggestion for an economical rail for a sunken living room.  Our unit has about a 10 ft span with a 12" ledge before you get to the step.  We need to install a rail to prevent any falls, but it seems these rails are primarily special order or online only for my local stores.  It is a lower end rental, but I want to make sure that the railing is sturdy enough.  This is my first rehab on a unit, so any feedback would be appreciated if you know of a good, cost effective rail.  Thanks!

Thanks everyone!  

@Michael Wentzel I totally understand that feeling.  I did get discouraged about the whole thing a few times, and then other times, I felt like I should just buy something and make it work. Ultimately, I'm glad that I was patient, but it was hard. 

I'm sure with more experience, I'll look back and realize that a few of the deals I got outbid on would still have been good deals even at a higher price, but I'd rather be a bit conservative starting out.

I look forward to hearing about the success stories of others on here.  Thanks to BP for all of the help so far!

After a long search, several strategy changes, and a lot of work, we found 3 units that we closed on the end of last week. It is a 2/1 SFR and a duplex on separate, adjacent parcels. 2 units are already occupied, with the 3rd unit needing minor repairs. We purchased the properties for $98.5k, plus 3k towards closing, and the properties appraised for $119k. Once the 3rd unit is rented, we should cash flow approximately $420/month after allowing for vacancy, repairs, and property management with the current rents, which are slightly below market.

Thanks to @Brandon Turner & @Joshua Dorkin for the BP podcast, which proved to be a valuable resource.  Also, Michael Quarles for all of the info that he shares freely with investors.  Last but not least, a big thanks to all of my local RE investor friends- Steve Scott, Ken Dojka, @Jay Kiehn, @Doug Merriott, and Jason Gaston.  I appreciate all of your help through this process, and I look forward to working together with you in the future!

If you have been looking for a property for a while, but haven't found the right deal yet- be patient, don't get discouraged, and just keep working on it.  You will find it, and it will be a great deal once you do!

Greg

Congrats @Jon Huber, those are great tips, and it sounds like you ended up with a great deal!

So my best option seemed to be the 20-year amortization with repricing every 5 years.  That is with a local bank, and I'm moving forward with that.  If I come across something better, I may refi down the road, but for now, I'm happy with this.  Just wanted to let everyone know where it ended up, in case someone else is looking later.  (I hate reading threads that never show the end result)  Thanks for the responses!

Greg

Lakeland Real Estate - KRL Group FL