All Forum Posts by: Filipe Pereira

No problem bud. Happy to help. BTW, Cozy does not syndicate to zillow ( I haven't found anyone that does, besides the MLS). Now that Zillow has transitioned to a pay-per-use platform, they are trying to avoid having to syndicate from other sources. Currently, you can syndicate rental listings from the MLS, however they just sent out an email saying (in the connecticut market) that is going to be coming to an end in a few months. They figured out that agents were just listing it on the MLS to bypass paying the Zillow fees (myself included).

Moving forward we are going to give clients the option to opt in or out of Zillow listings, because at the prices that Zillow is charging we can't absorb the cost.

That's an owner finance deal of a lifetime... wow! He is CHEAP!

I appreciate what you are trying to do here @Rob Krach, but you should definitely look into your state and local laws. In Connecticut it's illegal to only offer rent payment electronically. The tenant must be presented with the option to mail in / drop off a physical payment.

The rest of it seems pretty boiler plate and shouldn't be an issue. 

There's probably a few things going on here (keeping in mind the market we are in right now):
1. It's over priced.

2. The photos may be representing it in a way that is nicer than it actually is - sometimes those photos make a small room look massive, and when someone sees it in person, they just aren't interested. 

3. Something could be functionally off with the property. I know of a flip in West Hartford CT that has sat on the market for a long time now, even though it is cosmetically beautiful. It has an awfully laid out kitchen that is way too small for a house that size. It has an equally bad driveway / approach from the street. These things should be accounted for in the price, otherwise the property will just sit on the market. 

Everything will sell...for the right price. 

Hey @Raul R., thanks for the heads up on these. You can probably report it to your state's attorney general or the Department of Consumer Protection (DCP) for your state

What would be the best way to account for the $500/month? 

Schedule E is how rental income is reported for tax purposes. Check with your CPA to confirm if this works for your scenario.  

Would that be considered rental income and taxed at your regular income tax?

Yes, it's rental income. Yes, should be taxed at your regular income tax rate.

Would you need to have an actual lease agreement in place?

No, but your lender will probably ask for one.

Should you put that rent money into a new/separate bank account?

Yes, that would help, but not necessary. 

Would a lender even care about or consider that $500/month as income to better your chance of a loan?

Yes, they should

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And as @Theresa Harris mentioned, this opens the door to now being able to take writes offs on the property. Look into tax write offs for owner occupied multi family properties. I imagine it will be pretty similar, but I am not a CPA.

Did I mention I am not a CPA? 

@Greg Dickerson nailed it. If these are separate deeds then they will be assessed on each deed, not as one property. Have you already considered a blanket loan to cover all of the properties in one loan product @Kent Lyons? I am with  you, I like the idea of having 6 properties in close proximity - the thought that you could spin one off if you ever need more cash is really attractive. 

 I'm with @John Erlanger on this too, I'd want "volume pricing" if I was buying all 6. Think of it as a Costco real estate purchase, LOL. 

Hey @Frank Mwaisaka, as @John Erlanger mentioned, quiet enjoyment does not need to be in your lease. Most states cover it as a part of their General statutes. Try typing into Google “quiet enjoyment (Your state here)” and see what pops up.

In these scenarios we always provide the same notices to all tenants in the building so that no one can claim we are unfairly treating one party versus the other. We're in a tough time right now regarding evictions throughout the country, so you may just need to bear with it until you have more leverage on your side.

@Suman Choudhury that's exciting! What are you looking for recommendations for? If you click on our website in my signature below, we have a list of contractors we use in CT / MA under the "Resources" tab. It's free and you don't have to give us your email address, lol. Check it out and let me know if you have any questions, happy to help anyway I can. 

Thanks @Timothy Olaore! 
We use cozy for background checks. They've been reliable for the most part, and their credit reports read pretty easily. The utilities part is totally up to you and depends on what your local market calls for. Some places it works to have tenants cover the cost and in other markets it doesn't. Most of the time owners provide only water, sewer and trash in connecticut, but again, your market may be different.  

Caution about what Andrew was saying - some states have requirements that you accept the first qualified tenant and "holding out" is not an option. And yes, verify income by asking for last two paystubs. 

By the way, you can "upvote" posts on the forum by hitting the green arrows near people's names, in case you didn't know! :D