All Forum Posts by: Hitanshu Shah

Thanks All for the responses and some very good ideas! Trying to work this through with the PM

Hi All 

We Own a 4-plex in Riverside MO (Platte County). There are no seperate meters for Water and Sewer and hence these utilities are paid by the landlord. However, since the last 4 months the water usage has almost doubled and hence the water and sewer bills have also doubled causing a huge dent in my cash flow. I am working with my PM comany to investigate water leakages or tenant misuse but beyond that any suggestions on how to handle this situation? 

What would it take to have four seperate meters for Water? The Water Utility company is Missouri American Water and the Sewer company is KC Water. Would they help in investigating why the water usage is now double?

Looking forward to hearing from you. 

Thanks!

Thanks All. If I were to create a S-Corp to house the properties and use a schedule K for pass through losses would that help in my case?

Hi Michael 

Some of the strategies that we are told may help us apart from REP Status for my wife are the following. Would like to know why these will *NOT* work for us:

1. Cost Segregation/Accelerated depreciation.

2. Augusta Rule - Renting your house for a few days a year. 

3. Paying your child for work from your LLC.

4. Having your LLC pay for Vacation/Trips as a pass through expense.

Thanks

Hi Michael - All of the assumptions above are true except one - My wife has a part-time W2 Job where she works about 84 hours in 7 days a month but is off the remaining time. How will that change tax strategy?

Hi All 

We have two properties under seperate LLCs in MO. One is a 4-Plex under a 2 member LLC (My wife and myself) which we closed in Jul 2024. Other is SFR under a single member LLC (my wife) which we closed on 5 years ago. We also have W2 Incomes. We are looking for a CPA who is well versed with Real Estate Tax Laws and Strategy that can help offset our W2 Taxes with our investments and can also file our 2024 Taxes. Thanks

Hi All..Currently own a 4-plex in the KCMO Area and I am wondering if any investors have experience with Hemlane for properties in the KCMO Area. I know their SW Platform is good but how about the pool of Maintenance contractors/ability to solve tenant issues in a timely manner etc. I am looking for a PMC in KCMO and am evaluating Hemlane. 

Thanks

Hitanshu

Thanks All for your responses. We have notified the current PMC of termination, and the company has agreed to work with us to come to an amicable resolution on open issues. Let's see how it goes. We have also started the due diligence process of selecting the next PMC. Any PMC suggestions for this area would be great. The property is in Rivertown, MO. 

Own a 4-plex in the KCMO Area. The Property Management company has breached the contract in terms of allowable expenses without owner's approval. I am also having communication issues with this PM - no email responses for days. Other lapses include forgetting to include utility fees in a new lease which was previously discussed with the owner but the new lease got signed by an existing month to month tenant and was not shared with the owner before the tenant and the PM signed it! I am an out of state Investor. What are my options ? including legal options if I need to go that route to recoup my losses? 

If we go with a 30 year fixed traditional loan, how do we get legal protection? With 30 year fixed traditional loan we can only acquire it in our name and I hearing the deed trasfer after closing to a LLC does little to really protect the owners. Thanks