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All Forum Posts by: Joe Splitrock

Joe Splitrock has started 73 posts and replied 9759 times.

Post: Why cash on cash return for hotels are so high?

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565

@Leon Lee it is more active and there is more volatility/risk since a motel/hotel is used only for travelers. A motel/hotel is an active business with employees. I would not compare it to SFH or MFH. The good news is you should be able to review operating statements that are far more accurate than a SFH or small MFH information.

Be aware you have many more expenses like payroll, cleaning, common areas, parking lot, advertising, pool, breakfast area, etc. Motels/hotels have taken a hit through COVID with people choosing short term rentals. Hotels have struggled to reopen to full capacity, as finding employees and getting customers back has been difficult. 

Post: Tenant tube drains slow

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565
Quote from @David P.:

I have a first-floor tenant who had their washroom completely gutted out everything new and fixed previously leak and about 7 months ago that leak did minor damage to the basement ceiling washroom. Not once did the 1st-floor tenant tell me that the tube drains slow he decided to take upon himself and fix it he used draino what sure what else he did but water leak to the basement ceiling and walls washroom and made it worse suggestions and how to handle this situation

The water leak is not his fault. You need to fix the damage and move on. Maybe the draino made it worse, but does your lease specifically say that a tenant can't use draino? Many landlords will charge tenants to fix drain clogs, but then get mad when they try to fix it themselves. Can't have it both ways.

Post: charge tenants late fee if they pay CAM recon late?

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565

@Courtney Duong can you just meet with them and tell them and explain you need their cooperation paying on time? It is retail business, so they should understand that you need to get paid so you can pay your bills. Get their word and if they have not paid by the due date, call them and remind them that "they gave you their word this would not be an issue". It is amazing how just leveling with people can yield amazing results. I tell tenants straight up, "I don't want late fees, I just want rent paid on time". 

Post: Renter offering year's worth up front for a discount

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565

@David Siegel what is the benefit to you? You can't spend the money prior to the month you would have received it and a qualified tenant will pay rent on time every month without any discount. If you run into problems with the tenant and you evict, the remainder of the rent needs to be returned. In other words the money benefits you in no way at all. Only benefit would be if you have a high risk tenant, but I would not discount in that case. 

If you do accept advance rent, do these two things:

1. Only accept in the form of a cashiers check or cash. A standard check can be cancelled, up to even months later.

2. Follow all your standard screening methods.

I have taken advance rent before with proper screening and it worked out fine. No discounts though.

Post: What’s the best way to tap equity without selling?

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565

Keep in mind that interest deductibility follows use. In this case, Bob is taking out a personal loan for personal living expenses. That means the interest on the loan is not a business deduction. Bob would be better off using that loan to buy another investment(s) to increase his cash flow. In that case the interest is claimed as an expense against the new investment, not the original property. 

Post: Seller hides phony eviction during contract

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565

@Ryan Cleary as someone who has sold multifamily and placed tenants while under contract, I can share the thought process. Deals falls through or buyers delay closing (as you did). As a seller, you don't want to lose that income while you wait and you assume the new buyer will be happy the property is fully leased. I would never place a tenant without screening, but if the agreement didn't specifically prohibit me from leasing a unit, I would lease up any vacant units. 

The question for you is why you never had a walk through inspection on the day of closing. You never want to close on a property without walking it right before you sign paperwork. Too much risk. Not only due to surprise tenants, but it is not uncommon to have property damage show up after you go under contract. The seller may not even know. It is far better to negotiate before closing than after closing.

I would proceed with the eviction (no cash for keys) and ask that the seller cover the cost. Ask them for the full amount and they may agree to split it. Most contracts have provisions for arbitration prior to court. Most sellers will agree to something just to make it go away. I have had to do this two times after closing, where defects were covered up during the walk through.

Post: The Forums have a new look coming Monday, February 7th!

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565
Quote from @Taylor L.:
Quote from @Joe Splitrock:
Quote from @Taylor L.:
Quote from @Joe Splitrock:
Quote from @Bruce Woodruff:

Admins - Note that the only people who like the new forum look are people with very few posts. They've never really used/seen the old forums. Just sayin'.....


 I will take a few daggers for saying this, but I like the new forum look and I have more than a few posts;) 

To be fair, I have used the new forums for three months now. I was on the beta testing team. It took me some time to get used to it, so I encourage you to hang in there. Nobody wants to lose you or any other top contributors. You will get used to it and forget what the old forums even looked like. The BP team is very open to making tweaks and addressing concerns, so your feedback is being heard. That is why this thread is open for comments.

The biggest, biggest problem I see is the arrangement of each post's window. The arrangement should draw the eye to the post's content (blue box). Quoted content (yellow box) should be collapsed by default, with the ability to expand for context. 

Green box items should be on the left, separated from the post's content but still identifying the person who made the post.

This poor arrangement of posts makes the forums far more mentally taxing and confusing to read. Ultimately this will just send people off the site, because the extra mental effort is tiring and confusing at a subconscious level.

The exact number of posts and points is just unnecessary information. The previous method of rounding was great.

If I could change one thing, I would put green box items on the left. That is where that information should be. Its current placement makes using the forums far more difficult than it needs to be.



 This comes down to how people use the forums and how they interpret information. Of course we are all different. The grey box behind the text visually tells me what people are responding to. My eyes move to the response immediately and I just scroll past the grey box, unless I need to read it for context. In that way I find the grey box very helpful compared to before.

The text you boxed in green is basically a header bar separating posts. I think it helps to break up responses and it keeps the side bar from being too wide. If you put too much text in the side bar, it makes the center text more narrow, meaning more scrolling to read. It also creates a problem for the mobile web version, because a phone is not wide enough to have that much text on the side. You could have two different formatting methods for phone and desktop, but maybe that is harder to manage. I wouldn't be opposed to any of the changes you proposed, but I don't find either option mentally taxing. 


Your logic counters itself in this response. At first, scroll length doesn't matter, you'll just keep scrolling. Then later on it does (examples bolded and underlined above). I am certain that this particular post I'm about to make will be enormously long, and the forum software fails to compensate for that.


 It is two different types of scrolling. One is jumping between responses. You scroll past the grey and stop. The other is scrolling as you read. Think of it like skipping commercials. If you had to fast forward through 5 minutes of commercials every 30 minutes, it is easier than skipping 10 seconds of commercials every minute. 

The grey boxes are normally pretty small, but in cases where people have long responses, they do get big. I agree in that case, having it collapse would be useful. 

I would say collapsing the grey box makes more sense than moving the two line text "green" header. Just my opinion. Maybe on your screen size/resolution it is worse than on mine. I also have the benefit of using the new interface for several months, so I am adjusted to it. 

It is good feedback you provided. I am not a decision maker in any of this;) Let the BP overlords discuss and do as they wish.

Post: Eligibility for Capital Gains Tax Exemption

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565
Quote from @Ryan Tell:

I'm under contract for a new home purchase which will ultimately be my primary residence after selling my current home. I'm trying to figure out the best way to finance and avoid capital gains tax. I would like to use a VA loan for this purchase but I would be over the maximum entitlement since my current home loan is also a VA. My initial solution is to re-finance my current home into a conventional second home/investment property and to maintain primary residence there until I hit the two year mark of occupancy to mitigate capital gains tax. Concurrently, I would finance the new home with a VA loan and not officially move there until my current home is sold. Does anyone know if converting to this type of mortgage (second home or investment property) on my current home would make me ineligible for the IRS exemption on the capital gains tax?


The issue here is occupancy. If you have not occupied your current home for two years, you cannot sell without taxable gain. Regardless of how you refinance, if you don't move into the new property, you can't get VA on the new property. It sounds to me like the second home is actually your new home, so no VA loan. Although IRS doesn't specifically tie to mortgage types, occupancy does.

Why did you put a new primary under contract knowing you couldn't your old house and move into it? Think these things through before you sign contracts.

Post: The Forums have a new look coming Monday, February 7th!

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565
Quote from @Taylor L.:
Quote from @Joe Splitrock:
Quote from @Bruce Woodruff:

Admins - Note that the only people who like the new forum look are people with very few posts. They've never really used/seen the old forums. Just sayin'.....


 I will take a few daggers for saying this, but I like the new forum look and I have more than a few posts;) 

To be fair, I have used the new forums for three months now. I was on the beta testing team. It took me some time to get used to it, so I encourage you to hang in there. Nobody wants to lose you or any other top contributors. You will get used to it and forget what the old forums even looked like. The BP team is very open to making tweaks and addressing concerns, so your feedback is being heard. That is why this thread is open for comments.

The biggest, biggest problem I see is the arrangement of each post's window. The arrangement should draw the eye to the post's content (blue box). Quoted content (yellow box) should be collapsed by default, with the ability to expand for context. 

Green box items should be on the left, separated from the post's content but still identifying the person who made the post.

This poor arrangement of posts makes the forums far more mentally taxing and confusing to read. Ultimately this will just send people off the site, because the extra mental effort is tiring and confusing at a subconscious level.

The exact number of posts and points is just unnecessary information. The previous method of rounding was great.

If I could change one thing, I would put green box items on the left. That is where that information should be. Its current placement makes using the forums far more difficult than it needs to be.



 This comes down to how people use the forums and how they interpret information. Of course we are all different. The grey box behind the text visually tells me what people are responding to. My eyes move to the response immediately and I just scroll past the grey box, unless I need to read it for context. In that way I find the grey box very helpful compared to before.

The text you boxed in green is basically a header bar separating posts. I think it helps to break up responses and it keeps the side bar from being too wide. If you put too much text in the side bar, it makes the center text more narrow, meaning more scrolling to read. It also creates a problem for the mobile web version, because a phone is not wide enough to have that much text on the side. You could have two different formatting methods for phone and desktop, but maybe that is harder to manage. I wouldn't be opposed to any of the changes you proposed, but I don't find either option mentally taxing. 

Post: Removing Old Vinyl from Maple Floor

Joe Splitrock
ModeratorPosted
  • Rental Property Investor
  • Sioux Falls, SD
  • Posts 9,999
  • Votes 18,565

@Collin Maas I have a couple different floor scrapers. The one that seems to work best has a replaceable blade. I actually file the blade so it is even sharper. It can essentially cut through the glue. 

One serious caution. There is a good chance that 1940's flooring has asbestos in it and what you are doing will release dangerous particles. I would test the flooring before proceeding. You need a full respirator mask (not just N95) and you should even wear body gear and shower immediately after working on this. It is very common for people who installed flooring as a profession to get lung cancer later in life from exposure to asbestos. Any exposure level is dangerous, so stop immediately, until you determine risk. I know people who died from this and saving a few bucks on a floor is not worth it.

https://www.asbestos.com/produ...