All Forum Posts by: Greg W.

So my tenant wants to sublet the house she just rented three months ago. We are thinking of having the tenant find the sublessor and we will still use our criteria to vet the sublessor and approve them.

1. Should there be a separate sublease agreement for the new subletting tenant or should the subletter just sign onto the original lease as a sublessor? 

2. Should we, the landlord, get the security deposit from the sublessor or should the sublessor give the security deposit to the current tenant?

3. Should the sublessor pay the tenant and tenant is still responsible for paying us, the landlord, or should the sublessor pay us, the landlord, directly?

We are thinking of having the tenant find the sublessor, we will still use our criteria to vet the sublessor and approve them.

Anything else we should think about?

You can just file your own LLC documents.

http://www.sos.state.mn.us/index.aspx?page=177

Sample Articles of Organizationhttp://www.csb.uncw.edu/people/eversp/classes/BLA361/BusLawForms/Corporate%20Forms/LLC-Operating-Agreement.a%20law%20firm%20version.pdf

I'm not sure you need a company to be taken seriously but, it could help with first impressions. Once people get past your age and realize how knowledgeable you are, I would imagine that would be more important.

There are deals out there but you have to look hard to find them. You could buy a single family house or attached house and rent one or two of the rooms. Then when you move out, you could rent it to one person. You would just need to figure out what the going rate for rents are for a particular property and then make sure the mortgage plus expenses are less than that.

There are some houses out there that do have a mother-in-law suite in the basement. Not a lot of them but they do come up occassionally.

@Tom Henderson

How were you able to get the three duplexes and quad? Did you have 25% down for each or were you owner-occupying them?

Buying a duplex, living in one side and renting out the other, is a great way to start your investing. Try to find an area that is up and coming as it will be more affordable and get you some appreciation too. Maybe find a place that needs a little bit of work and fix it up over time, thereby forcing the equity. Good luck!

It should be taxed as a long-term gain; 0-20% tax rate. The client could do a 1031 exchange into another property. Purchase a retirement home, rent it for two years, and then move into it. 

I'm not certain about the depreciation though and how that would work. An accountant would know best. 

Check out this article from the Washington Post.

Downtown Madison is a tough market because there are a lot of new buildings that went up recently or are going up soon. Everyone wants to live in those, not the crappy old houses that you are probably looking at. All the students and Epic employees want to live in the newer places.

Then there's the City of Madison and their inane tenant laws. Madison is a very tenant-friendly city. The outer suburbs might be better with a more stable tenant and not as tenant-friendly laws.

I lived there two years ago so am familiar with the area, though I haven't invested there.

Bathroom and kitchen are original. Completely gut rehab both of them. Bathroom door will need to be moved a new feet to expand the bathroom. Sink, tub/shower, flooring, ceiling fan. 

 Kitchen will have a doorway closed off and window covered (brick exterior), new cabinets, sink, flooring. 

Bathroom we hope to have completed by the end of August. Kitchen may be a ways off depending on our finances. Do you have a website, Yelp, etc.?

Hello,

My wife and I purchased a house in Alexandria and close at the end of the month. I'm looking for recommendations for any of the following contractors:

• Electrician
• Wood floor sanding and finishing
• Asbestos tile removal on basement floor
• Minor concrete work, tuck pointing a fence, essentially
• Bathroom remodel
• Kitchen remodel

Thank you

@Douglas B. I'm not an expert on section 8 but in reading the document, it seems to indicate that unless the tenant is causing an issue stated as grounds for termination of the lease, you as the owner must renew them. A notice of non-renewal isn't an option just because you want to convert them to market rent.