All Forum Posts by: Danae Meurer

I am going to try to make this as clear as possible.

My husband and I own 6 properties all in our own names.

Just this last year we got our LLC setup with bank accounts and business cards and we have been doing business with this name. However, none of the properties are actually owned by the LLC. Can we choose whether or not to file all our business income through the LLC or simply on our Schedule E? I would prefer to do it on a 1065 as a partnership, to start building tax history for the LLC, but didn't know if this is allowed.

We will be using a cpa to do our taxes but haven't gotten everything in order. I was planning on filing an extension, but didn't know if I should file one only for us personally, or to file an extension for the LLC as well.

Hoping this makes sense enough for someone to understand.

Thanks for your help!

Matt, which company are you working with?

How does one account for seller concessions from the HUD-1? Is that amount subtracted from the basis, or is that money allocated proportionally to each item in the closing costs it covered?

Also, if there is a Lender Tolerance Cure listed, does that follow the same treatment?

Steer clear of Denver Realty Group.  We used them for a couple of years and have had more problems than we can count.  We have recently started to transfer over to Tenant's Choice and have been only impressed so far.  Those are the only two we have had any experience with.

This is my RSVP.

A couple of years ago, prior to Amendment 64, we rented one of our houses to two professionals who had their medical cards.  At the time, the rental market was tough and we hadn't had much interest in the property. We also weren't sure of the implications as landlords denying someone with a medical condition.  The rest of their application looked great.  We decided to have a very open conversation with them.  Yes, they were planning on growing, no they were not growing large numbers of plants.  We added an addendum to our lease stating they were not allowed to make any changes to the electrical system and that they would be responsible for any repairs relating to the system if it were overloaded.  Also, just because we were allowing the plants did not mean we were okay with them smoking in the house.  

These guys ended up being some of our best tenants.  The only issues we ran into were when we were trying to show the property to the next set of tenants.  The house smelled quite strongly of pot and we got a few raised eyebrows.  By the time they moved out and it was professionally cleaned, you couldn't even tell they had been growing in the house.  We did have one small area of drywall along the floor that we replaced at the end of their lease.  It had some water staining, so I am sure there was a spill at one time or another.  Since this is Colorado, we have the benefit of it being so dry.  Anywhere else I am sure that could have turned into a mold problem, but we didn't have that issue.

Some thoughts. 

- We didn't think about charging an extra deposit.  I would do that with anyone else even though we didn't need it with the other guys.  

- I would make them show proof of renter's insurance with a good liability provision.

- Do I think telling them no smoking made a difference?  Who knows.  I am sure they did on occasion, but there was no noticeable evidence after they left.  

- As a side note, we would rather have a bunch of potheads living in our houses than a bunch of drunks.  We have had much more damage to the houses by people who had frequent alcohol parties.  Holes in the walls, broken shelves, broken mirrors, etc.  The potheads tend to be much more mellow.

Obviously this is simply anecdotal evidence, but I thought I would chime in since we have had experience with this one.

Our contractor has been running his own business for the last two years. The business side has totally burned him out and he has decided he just wants to swing a hammer again. He has been offered a position in Phoenix, but I would selfishly like to keep him here.  I thought I would post here to find out if anyone in Denver is looking to hire some high skilled labor onto their building crew. He is honest, reliable and a hard worker. He has done the entire remodel on 3 of our houses and has done substantial work on the other 3. If you don't have any leads right now, but have other contacts who might be interested I would appreciate if you could pass them on to me.

Hi Kayla,

I would run the numbers for all the units being occupied.  If the numbers look okay then I would have no trouble buying it and counting the rent you are saving as cash flow.  Being able to use owner financing and finding a multiplex for sale right now are benefits that don't fit into a formula.  

My husband and I started out buying single family homes that we wanted to live in.  Fixed them up while we lived there and then moved on turning them into rentals.  So because they had to fit our family they didn't all fit the numbers perfectly.  They all cash flow and have appreciated greatly in the past few years, but none of them are 1%.  The renters are also paying down a huge chunk of our equity.  Now that we have more ability to be choosy I am more concerned about the numbers.  

Cash flow is not my only consideration when deciding on a purchase.  For instance, we like to buy properties in nicer areas.  Some times the best cash flow numbers are in the cheaper properties, but they tend to have more headaches as a landlord.  So we choose to have less cash flow, and less headaches.  However, our properties have much higher appreciation possibilities because they are all in nicer neighborhoods.

I am an investor here in Denver and would be happy to talk to you more.  I try to get to the biggerpocket meetups and you can always message me. 

Don't let a less than perfect market keep you from moving forward with your goals.

We are between projects right now and I have a great contractor I would love to keep busy. Please send me a private message and I would be happy to give you his name.

It was great to meet you all tonight. I am glad I took the time to come out.