All Forum Posts by: Jason Krawitz

He lives next door and wants to own the home so he can move his in-laws into it vs. having no control who his neighbor is. The house is in a very hot zip code which is to his benefit.

My reasons *to* sell would be the offer amount, the fact that the house has issues and if I were to ever sell it, nobody else would buy it "as-is" for this price today other than this person. There would be no realtors involved in this and closing would only cost me about 1k. So... this is kind of like a 230k offer from someone random if I were to sell it with an agent involved.

Here is how I'm trying to look at this. If I had 215k in my pocket and were looking to buy a rental property (or properties perhaps) with that money, would this be where and how I'd want to spend that money? If so, I will keep it. If not, well... I suppose selling it would be logical. I'm struggling to figure out how to evaluate the answer to that question.

As far as capital gains go, do the gains have to be re-invested in another home for them to be tax sheltered or can I just walk away with the gains tax free? When I moved out of this house 2 years ago, I bought another home. Can the "reinvestment" be retroactively recognized if required to be reinvested?

Thanks ya'll!

 My understanding is that they will not. This was my personal residence for more than 2 of the last 5 years. Am I correct that the capital gains wouldn't apply? 

Here are the #'s

I paid 128k for the home 11 years ago. It's paid for. 

Offer of 215k 

Estimated value 190k

Annual Rental Revenue 19140

I received an attractive cash offer to buy my one and only paid for rental property. I'm relatively new to the real-estate investing world and am struggling to mentally calculate and quantify the offer in comparison to the expected future cash-flow + increase in value of the property. Are there any calculators out there that can help me analyze this objectively? 

To put it in different terms let me ask this. If someone offered you, for example, 115% of your home's value to buy one of your units, what factors would you consider in regards to holding the property or selling it for the offer? 

Thank you Jeff and Russ! I hope you both voted today. You live in important states!

Good afternoon! I showed my rental to a family today that I'd like to have move into my property but they can't afford the approximately $3500 needed to move into the home (1st months rent + deposit + pet fee) plus December's rent in 2-3 weeks making the total cost about $5k. They'd be moving in mid-month. Would you ever consider accepting a pro-rated 1st month's rent as an incentive to attract a tenant you like after showing the property to them? They asked while I was showing the property if the rent amount was negotiable and I said no.

On one hand, I don't want to start off a relationship with exceptions being made on the $$$ side of things. On the other, I recognize that $3500 is a lot of cheddar for someone to cough up all at once with another $1600 due 2 weeks later for December's rent. That's asking them to pay $5k in a 2 week period to take possession of the property.

Thoughts? Suggestions? Am I being too soft and emotional about this!? lol

Thank you for taking the time to reply Meghan! I did do a move in walk through/condition form and will meet them at the property Saturday morning to do the move out portion. This will be before the home has been cleaned but they are moving out of state so it will have to do. I've been in the property a few times recently to show it to new tenants and I don't expect there to be much. They've kept it in pretty good shape.

As far as the new company, they are called Global Education Concepts which is a Division of the Southwest Company. They partner with local businesses to put Foreign nationals on a J-1 Visa program into 12 month internships. They provide the housing and the Foreign nationals are hopeful of landing a full-time job out of the deal and becoming citizens. 2 per room. Most likely for 12 months at a time but they may be overlapping move in/out dates so it could be multiple different students. Their company website outlines how they are vetted. I've asked for references from prior landlords they've worked with to get an idea of what I'd be getting into before I agree to it. I'm overly cautious about the screening process and have already turned down applicants. I'm trying to figure out, if I accept this company, whether it is customary to charge a premium given they aren't a typical tenant.

Great information. Thank you. This prompts a follow up. What do you consider "damage" vs. "normal wear and tear"? I know that's a loaded question but any examples would be appreciated.

My first tenants are leaving after a great 20 months being my customer. My first question is what do you normally do on move-out day? Do you meet them at the property to collect keys? Do you walk through the property to document the condition before they leave? Are there any final documents you get signed or do they just quietly ride off into the sunset leaving the keys on the kitchen counter?

My second question is about a prospective new tenant that is a company. They will be using the home to house foreign interns. Would/do you all charge a premium for leasing to a company since they are the ones that will have control over who lives in the house?

Thanks in advance!

Thank you for the Reply Chris.

I am a big Dave Ramsey fan and have heard him talk about the Southwestern company for years. I also have a personal financial advisor through one of their other companies called The Southwestern Investment Group.

And... by you asking me this question, you just prompted me to find out more about this by calling my advisor to see what he can tell me about the situation. Thanks for tickling by brain!

Good afternoon - Anybody have experience leasing to a company? I was contacted by a company called Global Education Concepts. They house interns that are in the U.S. on a J-1 Visa for 12 months at a time. The parent company is The Southwestern Company whom I'm familiar with and comfortable with.

Any thoughts or ideas? Thanks!