All Forum Posts by: Jim Robertson

 $990 for property tax seems really low? Most of the areas i have been looking at around central Texas are close to 2.2% Has the tax rate been adjusted for the new construction or is that the tax on the lot?

I am the manager of a small (4 unit) HOA. Do I need to file an AP-206 franchise tax exemption every year with the State of Texas comptroller, or do I just need to file the 1120-H with the IRS?

The previous property manager has not been filing the AP-206.

If I am the managing partner of an investment property, what info and forms do I need to give to my partners to show income, expenses, depreciation etc? Can I use a 1099 or K-1?

The neighborhood has a lot of vacant land/lots left to be developed. so consider the potential addition to supply against current or future demand. There are a lot of great things about the montopolis neighborhood and they should work out in your favor f you are looking at long time horizon. If you are going for a 3-5 year hold you will be selling your property built now in a market of even more new construction. 

I used them for a commercial loan. They were very easy to work with.  

@Luke Grieshop Most of the responses so far are great information questions and experience questions. I would add in few situational questions such as "How would you handle a dispute between neighboring tenants?" or "If a tenant offered services in exchange for rent how would you handle their request?" This will give you a feel for how your property manager will  react to problems  that come up over the course of real estate investing. Is your manager going by-the-book? Does he or she look at each situation individually? Make sure you like their approach to problems. 

I would recommend Raven Herron for Tax Planning, Prep and Filing.

https://www.ravenherroncpa.com/

I would recommend Joey Leak for business set up. He has helped me out with a few partnerships and Series LLC.

https://brltexaslaw.com/

I have two partners in the purchase of a duplex. One partner is getting the loan in their name and all of our names are on the deed. We are splitting the down payment 3 ways. If my portion of the the down payment came from LLC and is wired to my partner would this be considered income for him? He is curious if the money that is given to him could be considered income or taxable income?

@Patrick Philip I would think really hard about your minimum standards and qualifications. You may want to write down items that you will not compromise on and items that you would consider. I have a list of "hard no" items that I tell tenants before accepting an application. For me, it's must make three times rent in gross monthly income, no history of evictions, no violent offenses or felonies. This goes for anyone over 18 living in the unit. For other things that I consider a maybe, I let the tenant know I will look at the big picture. 

I offer an upgrade to the unit with a lease renewal. I have painted accent walls, put in new light fixtures, and a new vanity for a tenant. In January I am putting in new interior doors for some long term tenants. If your structure your gift this way, it would allow you to improve your unit, make the tenant happy, and reduce vacancy. 

I give the tenant 3 options of things to improve with the unit. That way they don't ask for something outrageous or expensive.