All Forum Posts by: Chrystian Tapia
Chrystian Tapia has started 7 posts and replied 21 times.
Post: Real Estate Tax Question
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
I was thinking the same. I'll know for sure next week when I meet with an accountant.
Thank you Ashish
Post: Real Estate Tax Question
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
Hello BP Community,
I purchased my first rental property in 2019, paid cash at auction. Then using the BRRRR strategy did a cash out refinance. But, I actually had my Sister complete the refinance, so the mortgage is in her name. I sold the property 6 months ago, and had a net profit of $95,000. Can I list the profit as income on my Tax return, even though title and mortgage was in her name? Any feedback would be greatly appreciated. Thank you!
Post: Cash Out Refinance Terms for BRRRR strategy, Which do I choose?
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
Thanks Jaysen, I decided to go with the 30 year mortgage. The property is a SFH that I purchased in a judicial auction last year. Like you said, I can always pay it down sooner. With the 30 yr I'm also comfortable with the payment, if I have to make the payments myself. Thanks again Jaysen, I really appreciate your feedback.
Post: Cash Out Refinance Terms for BRRRR strategy, Which do I choose?
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
Hello Everyone,
I'm working on my first BRRRR transaction, and I'm curious what your thoughts are regarding refinancing terms. Would you recommend a 15, 20, or 30 year mortgage? Here is my current situation:
15 year, I would cash flow $100/month
20 year, I would cash flow $300/month
30 year, I would cash flow $500/month.
I have $150,000 into the property, and I'm planning to cash out $175,000. The bank actually told me, I can go as high as $205,000. So, I'm also wondering if I should pull out more? Any info would be greatly appreciated.
Thank you!
Post: What to do when tenant breaks Cash for Keys agreememt?
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
Originally posted by @Anne Jenkins:
Not sure if this is legal in all states...but it works in mine...Pennsylvania.... I
have a Notice to Quit Wavier in my lease where the tenant waives the
right to notice. This way I don't have to post or wait 10 days to
file. It has been tested in court and the judge approved it. Matter of fact asked it I had this clause in my lease. Have been to court 3 times with this lease and never posted notice. Here's the wording....
NOTICE TO QUIT WAIVER
THE TENANT HEREBY SPECIFICALLY WAIVERS HIS (HER) (THEIR) RIGHT TO RECEIVE
30 DAY NOTICE ON ANY “NOTICE TO QUIT” THE LANDLORD TENANT ACT. THE TENANT FURTHER UNDERSTANDS THAT THE LANDLORD SHALL HAVE THE ABSOLUTE RIGHT TO DEMAND THE IMMEDIATE VACATION OF THE PREMISES BY THE TENANT AND THAT THE LANDLORD MAY EXERCISE THEIR RIGHT AT ANY TIME THAT THE LANDLORD FEELS THAT ANY TERMS OF THE LEASE MAY HAVE BEEN VIOLATED.
Put in a clause recently having to do with abandonment of property. Some of my locations require a landlord to STORE contents of a unit that was an evicted tenant for 30 days. LIKE NO!!!!! So I added an abandonment clause. Not court tested yet....but it should work.
My lease is now 10 pages long in an attempt to cover it all. All from lessons learned.
Hello Anne, I'll have to run it by an attorney here, but it's an excellent addition to your lease.
Thanks for the information!
Post: What to do when tenant breaks Cash for Keys agreememt?
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
Originally posted by @Aaron Rowzee:
@Chrystian Tapia
What are your thoughts on professional property management? I’ve used it from the beginning on rental #1 and every one since. I allow someone who is good at that one thing, to be good at it with my properties. Therefore, I am free to go out and do what I’m good at: finding deals.
I'm looking forward to using a property management company at some point. I just want to be hands on in the beginning, and acquire a few more properties before I hand over the reins.
Post: What to do when tenant breaks Cash for Keys agreememt?
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
Thanks for all the replies, advice and constructive criticism. I really do appreciate it. I do have a mentor with 40+ years experience guiding me. He has just under 100 doors here in Chicago. This one slipped by the both of us. Again thanks for your feedback.
Post: What to do when tenant breaks Cash for Keys agreememt?
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
Originally posted by @Karen F.:
Oh, we've definitely learned some things the hard way. But to be so trusting as to PAY a non-paying squatter to leave, BEFORE they leave? I'm just telling the man the truth. He's not cut out for this business.
God bless you Karen :)
I won't be walking away from this business anytime soon. I have 5 other paying tenants in this property, so i think i'll survive. I don't take anything personal even when tenants try to screw you over. You live and you learn, key is not to make the same mistake twice. Stay positive, it feels better.
Post: What to do when tenant breaks Cash for Keys agreememt?
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
Charles,
Haha, I actually have thought about some of your suggestions. Thanks :)
Post: What to do when tenant breaks Cash for Keys agreememt?
- Real Estate Broker
- Franklin Park, IL
- Posts 22
- Votes 16
Bjorn and Kyle,
Thanks for your input. This was not an inherited tenant. I actually got scammed from the beginning. The applicant for the unit never moved in, he handed the keys over to his girlfriend who apparently did not want to go thru the application process herself. I collected the first months rent and move in fee. Since then nothing, now she's 2 months behind in rent. Followed by a costly mistake in my part, but lesson learned, i'll never give the money up front. Thanks again guys