All Forum Posts by: Federico L.

Add to my prior post: I've been using te standard Florida Realtor's contract. I guess using a customized contract with more contingencies would give you more outs...

Brian Garrett thanks for posting this question, seems basic and your RE agent should be able to answer it but it is interesting to see other folks' take on it. I've been thinking the same, actually I'm closing now on a REO house in which in retrospect I should have done things a bit different. I work full time, so the 15 days to do the inspection and pull out with the earnest money go fast. I still don't have a trained eye to accurately calculate repairs or what amount of repairs/improvements are needed to rent the house (I.e. Do not overspent). I had the inspector on day 7. Report on day 8. Was able to negotiate price down a bit, but I still don't have a solid number of (cosmetic)rehab cost. This means that now on day +20 I have no out. Would getting your electrician, painter, handyman, etc there with you within 10 days have helped? Absolutely. Many books say to build your team first. It was posted in this thread too. Do I have a team now to do it? Not yet, cause I'm starting. It seems that one puts together a team with a project on hand, and hopefully you then call them up for the next. You all know how difficult is to find a contractor. Is there a difference with these jobs versus cosmetic home remodels? (E.g., they specialize in one thing, or they charge more premium rates?). Would love to have one to come for a walk around. If you can recommend one in Orlando do PM me!

Thanks Dan Bryskin I re-read the post and realized the complexity. I thought some folks may have had some of the same questions and would comment on their experience. So you say the LLC carries out the land-lording business with 2 owned bank accounts. Do the LLC owns the properties on the deed, or is you as an individual? Thanks!

Dear BP family,

When I bought my first rental, I paid from a personal savings account. I had another idle savings account where I started depositing rents. Months later, I opened a personal checking account where I transferred the rents and payments go to and from.

I'm now closing on my second property. I guess I will be using the same checking account. But I will have many payments to go to make it rent-ready, and I anticipate those will come from my other personal checking/savings. (I can easily track expenses in Quicken, which I've used forever.)

I had created an LLC but the property(ies) have not been transferred to it yet, so I do not know if the LLC can 'operate the business' of collecting rents and paying servicemen, in which case, the LLC will need a checking account of its own.

My questions:

1. Do I stick with the existing checking account? Over time, $$ will build up (cap ex, maintenance, etc) making it difficult to understand what is what. Plus, in one of the podcast I heard the investor moving money out of the account out of fear for people accessing it and depleting it.
2. Should the LLC operate these rentals through an independent bank account, despite not owning them? I wonder what others have done
3. Second property will go with PM. Do you recommend I upgrade to Quicken Rental Property Management, and use it to track what is what there?

Thanks

I'm closing on my second property and it all comes back again... Mike Flavin is wright about the commercial loans, no problems there, but it's hard to beat a 30y residential loan with low interest. Rick S. that was a good point with the insurance. Does anybody know if when you quit claim it you lose your title insurance? Do you have to pay to amend it?

Agree with Todd Magin , much easier to "see" and play with numbers/scenarios in a spreadsheet. However the printout from the calculators, especially went you paste the photo and everything, looks very elegant.

Originally posted by @Jason Cobb:

All this to say that while you can just go to your county property clerk and do a quit claim deed to your LLC. its possible that your mortgage company may come after you and demand payment for the balance of the note.

Keep in mind that you will be incurring in Doc Stamps costs. In Florida, it's 70 cents per each 100 dollars encumbered in a mortgage. For example, if you owe $100K to the bank, and you quit claim it for let's say 10 bucks, you will receive a letter from the Florida Department of Revenue asking for $700.

all great suggestions thanks a lot!

@Rocky V. Filters were good. That was his assessment, somehow it froze, and after that it worked fine

@Samantha Klein I guess the idea is to prevent unnecessary calls, I saw that in many contracts and is in the standard FL Realtors contract. But I see your point. Another reason to have a PM that will review each issue on a case by case...

This is about what I consider a rookie mistake. I have a nice rental which is about 35-40 min from my home. I was working few Sundays ago and my tenant called stating that the A/C was not cooling. The unit has about 13y so I know it may give up any time.  I do not have it under property management (long story). The tenant has had late payments but has nevertheless paid the corresponding late fees. I have not had issues otherwise and a routine mid lease inspection was unremarkable.

That Sunday I was working. My wife sent an A/C repairman. He checked everything, and it turned out that the thermostat was set at 67 F, which froze the line and therefore could not cool. He educated the tenant and asked them to hold off few hours. Problem solved, unit refilled, diagnosed with a terminally ill motor (about 3-5y left). Service call+Sunday+repair= $120.  Tenant responsible for repairs under $100, so the check came from my bigger pocket.

What would you have done? (besides asking what temp is set to)

- Have a A/C company that would charge you $99? classic Home warranty scheme

- A/C stuff is serious and would always require a quick trip to take a look

- Wait an extra day. I guess it would still be timely. It was February in sunny FL

I welcome your comments and suggestions!