All Forum Posts by: Dennis Tierney

I didn't know about it but the property management company has a relationship with the police so they were able to get it.

Does anyone routinely get police reports on a multifamily property during due diligence? I wish I had on a recently purchased one in Des Moines. I knew it was going to need $ put into it and some weeding out of marginal characters but was surprised when I found out there were 391 police calls there last year and 112 thus far this year. It's going to take more than I expected to turn this place around. Lesson learned.

@John Warren It won't be lifted if Pelosi has her way. She wants a 12 MONTH moratorium on evictions in her latest stimulus bill. Look at page 962

https://docs.house.gov/billsth...

https://docs.house.gov/billsth...

Better write your members of the House. Their new bill has a 12 MONTH moratorium on evictions Page 962. The rental business as we know it will be ruined.

I am not a lawyer but I have had a SDIRA since 2006 I have used for real estate purchases and any loan has to be nonrecourse, which I doubt this is with a HML involved.

@Kia Skelton Sorry for your troubles but all isn't lost on the portion of the 1031 that falls out. In 2018 I had a partially failed 1031 but was able to avoid the capital gain when I was able to purchase another property outside of the 1031 and used a cost segregation study to 100% depreciate in that year the $ I invested in the new property. Just another option for you.

Nicholas: I am using cost segregation studies to depreciate new MF purchases under the current rules and getting anywhere from 25-28% of the purchase price to depreciate in the first year. Is that about average for what you're seeing others get for their cost seg. depreciation?

I spoke to one of the management companies today and they are finding a lot of resources to help the tenants pay. The are a fair # of churches and agencies (United Way is one) that are getting gov't $ to help tenants. The tenant still has to make a good faith effort to pay a portion but the majority of it is then paid to the PM company by the agency. This has helped April quite a bit but it remains to be seen how May will go.

My personal opinion: In the current economic uncertainty with most state governors putting a moratorium on evictions and skyrocketing unemployment cash is king and increasing your indebtedness is hazardous.

@Jill F. Is Ohio one of the states that the governor has suspended evictions? Nebraska and Iowa are and that's having significant impact since tenants know they can't get evicted so elect not to pay rent. We have some MF properties that are caught up but also one that's 14%, one that's 17%, one that's 20% and one that's 30% delinquent in April. Since the states aren't going to reopen much in May I expect it will get worse. I've already paid 3 mortgages "out of pocket" this month. I suspect we may have to sell off the single family portion of the portfolio to generate capital to pay down and restructure some of the MF loans so that we have enough cash flow to keep them afloat.