All Forum Posts by: Ceril S.

I ran across this little blip on zillow:

Most expensive rentals in LA

So I looked closer to home:

Most expensive rentals in Philadelphia

I know that there are huge mansions in NJ that I guess get rented to? CEO's or movie stars?

I know you'd have to have deep pockets to head down this road but I was curious if anyone here does this. Is it even profitable?

Regardless, it's fun to look at. 

The deal is that it's a group of students. The way the lease reads is There is a "base" rent for a "base"number of students and for each additional person up the the max allowed - the rent goes up.  It looks like once (2-3 years ago) where the max number of people lived there and that was the rent $ advertised. (So theoretically, you could get that rent). My theory is that it was a fluke and that level of rent is actually unsustainable.  The lease also gives the option for the current tenants to renew the lease which this group did. 

Incidentally, we did see them and as far as they know they think they have a lease (since they signed it) and they fully expect to live there next year.   Really nice group of kids. (See? Too attached?)

So, now the seller is asking whether we want to negotiate for 2015-2016 ourselves or if he should execute the lease. To me it sounds like a trap. If we decide either way, he will say it was our choice and whatever he stipulated previously is now a moot point.... (Therefore relieving him of our request for a concession on this point)

I understand the thought of walking away - he is unethical. 

The problem for me is here - and I know the pitfalls even as I'm saying it - but I'm posting it here to be able to see it hopefully more clearly: is a bird in the hand better than 2 in the bush?  ie. Is the lower lease locked in better than a hypothetical future lease or am I getting too attached to this property?  The numbers go from pretty good to just ok, but there is the hope that rents could be higher next year? (Yes I see this....looking for outside confirmation)

@David P. Did you run the section 8 tenants through your normal screening process? Do you have them pay an application fee, etc? This may be a stupid question but can you deny them using the same criteria you normally use (minus income)?

@bradley I have several phone calls to follow up on, then I will take you up on the offer!

@Bradley Bogdan thanks for the info. Definitely something that I will look into given the areas that I've been looking into.  Sounds like I have some research to do...,

Does FMR equal the amount that section 8 would pay? I've never thought much about section 8 but it's very comparable to non-section 8 maybe even better if so.

@Steve Wilcox @Bill Gulley relistening to that podcast!

There has been plenty plenty talk here about forming an LLC or not. We decided to go ahead and create an LLC, but were told by our lawyer that after closing on the the property we wouldn't be able to move it over to the LLC until the title is filed and that takes time. So, that creates a gap in time. We want to keep the finances clean and run everything through the LLC but not sure how to receive $ under the LLC. I thought that I had read in another thread (that I can't find now) that I can lease the property from me personally to the LLC and then the LLC can therefore lease the property out and manage it.

My question is - 1) is this legal - for me to lease the property to the LLC and have the LLC lease it out? 2) Have I now started a property management company illegally since the LLC will be taking care of property that it doesn't own?

My question is also asking for advice about how to structure things. Eventually the LLC will have title on the property - then am I considered the owner when I work on the property?

Thanks for any advice!

 The owner says that yes he signed the lease but he never gave the signed copy to the tenants and claims that it's not valid therefore. Our lawyer says that technically it's correct that if both parties don't have signed contracts.... But we have a copy of the signed contract!

@Abdul R. I agree with @Scott Weaner - I've been using the 1% rule as the "sniff test". Then plugging it into the calculator - high property taxes can definitely kill it. Beginning to wonder about investing out of state - the cheaper taxes would pay for a property manager....