All Forum Posts by: William Morrison

Allan I use Sense Financial with Dmitriy Fomichenko here on BP. I have been very happy with the product. The maintenance I would not describe the same way as you might a Checkbook IRA. You are the Trustee as owner of the single employee company. I do pay an annual fee to keep up with changes in the Solo 401k laws and filings. I have also received prompt advice when I needed it.

You might also contact the original closing attorney.  They will have some incentive to fix it.

 Ah, Stephen you know of the country, I mean county of which I speak.  <Grin>
Seriously it hasn't been a problem.  I don't think any tenant sense 1999 have agreed to the 2 years.
Now the annual $105 landlord license per property and the new $30 state wide registration for pre 1978 properties with lead based paint and the associated inspection, that real fun here in the Republic.  If the numbers work, the numbers work.  

 Andy it's interesting getting multi state and county requirements on BP isn't it.
The county I live in, in Maryland will not allow me to offer less than 2 years on a lease.  But the tenant can counter with one year.  We get so many people in our area from out of state who at first look are surprised by two years when they see it.  Then we tell them we have to offer and they can counter.

 They still make for great tenants because they have to answer to their employer for everything in their private life.  <Grin>
So rental near military bases tend to be a good thing unless BRAC'd

 Ken, what is known as the sailors and solders act dictates the termination conditions.  You can put anything you want in lease it just wont be enforceable for American Military.
I'm involved in a 10 year commercial lease too.  Great deal.

 Luka, Your last sentence brought a smile to my face.  I don't mean to laugh at your expense but I found that hilarious.   And that because I have needed that presentation myself and maybe many others on this site as well.

When replacing window and not the siding you have to know how they are dealing with the flashing.  Some big names don't sell a window (this from about five years ago) that is replaced from the outside because of this.  Be sure the rep explains how they are dealing with the flashing.  Both Lowe's and Home Depot sell both.  I have had windows replaced and the trim inside and out at the same time to go to maintenance free from wood requiring painting.   Don't let them cut and caulk.  The caulk will dry, shrink and leak over time.
I have used window replacement companies with long track records and supplier warranties not the big box stores because the do it every day.  Most publish their call back rates, expect high 90's for no call back.

Renting to military members has a lot a really good features like the threat of the loss of clearance for failure to pay by the tenant.  The sailor and solder's act works for you and the tenant.  But I don't think it applies to foreign military even if attached to a US base but it may.
Military have to have the Commander's (its someone in his chain acting on his behalf) permission to live off base if they want to keep their housing allowance.  Pretty straight forward with the shortage of base housing at most locations.  Not that you'll be able to find out, but if this is swap with the Canadians (we send one they send one) we may be paying his housing and they pay the the American's housing at the other end.
Military make great tenants for the most part.

Great recap Adam. I noticed you're in North Carolina. It is where I set up my first out of state LLCs. I'm in Maryland. Their government site is pretty informative. They have also been very pleasant and responsive when I've called. The cost is reasonable to setup an LLC there and the foreign entity probably works better for a different type business (vs buy and hold rentals). In California not so much for me. LLCs are costly there, a simple partnership worked better for me there.
While researching this whole deal I found case after case that confirmed your last statement about fines, back taxes etc to be true.   And the examples were all Nevada, Wyoming etc LLCs doing business in another state with an asset in the other state.  Not just the inability to sue but when sued they started out as operating illegally (maybe the wrong term but close). 

Good point Dave.  It is also important to note that it's not what depreciation the owner took but what they were supposed to take.  It is not an option. You will be treated as if you took the depreciation even if you didn't.  I think every investor should read the couple of IRS pubs that apply to Schedule E at least once.  It would help with what's a repair, safe harbor etc and every day rental life <Grin>. 

Side note: If you take or took the Bonus Depreciation (the stimulus bonus) you may de-couple your state return.  Maryland is that way and I had to file 1040X's or have file two 1040's every year for 27.5 years, the second without the Bonus Deprecation and attach it.  Those 1040Xs were for the first two years it existed when tax software did not correct for it.  At the time I filed the 1040X one article said 30 states had pasted laws de-coupling the state from the Fed if the Bonus Depreciation was used.  Now you have to submit a statement with the Federal return stating you realize you are not taking the Bonus Depreciation.