All Forum Posts by: Joe Splitrock

My only problem with guns is that too many owners are irresponsible. This is why my lease has a no firearms clause. If someone wants firearms, I write a lease addendum that clearly spells out their responsibilities. Gun ownership is a privilege and with it comes responsibility. 

I would contact the police and request a copy of the report. They need to talk to 301 and this needs to be fully documented. Try to locate the bullet and have the police take it. They need to verify serial number on the gun and verify legal ownership. If the tenant in 301 doesn't cooperate or fails to produce the gun, I would file for eviction to get them out ASAP. 

As far as 201, let them know what actions you are taking. If they are still uncomfortable and want to leave, LET THEM LEAVE. You never want to force a tenant to stay in a situation where they feel unsafe. If you did that and something else happened, you would be held liable. The first time a gun was fired accidentally, you can claim ignorance to the threat. The second time the tenant does something, you don't have that defense. 

Nothing will make tenants move faster than bullets flying through their walls. 

 Setting to 70 degrees is way too low. Ideal temperature is 78 degrees. You could probably push down to 74 safely if it wasn't too hot outside. This is to maintain sufficient temperature delta between return air and cooled air. That delta is around 20 degrees. Also be aware that an AC is sized to maintain 20 degrees difference between inside and outside. That means if you set it to 70 degrees, it will struggle over 90 degrees outside. It may cool, but it will be working overtime to do so. It becomes less efficient and wears the compressor out faster.

You are probably getting half the life expectancy out of your HVAC because you are not running it properly. I have never had to replace an AC unit before the 20 year mark and I have had them go as long as 40 years. I educate my tenants on proper operation to increase longevity.

Hey @Peter Morgan I would educate your tenant, but also look into other options to keep them from operating it. See if your AC unit has a cold weather shut off or you can pull the fuse block. That is what I do at my short term rental. With the fuse block removed, they can turn on the AC, the air will circulate but it will not cool. Odds are good they will think it is cooling anyways because air is moving. 

Hey @Anthony Dooley having money for repairs doesn't mean tenants can misuse appliances. You can freeze up the coils and burn out a compressor when you run in cold weather. Even though I have money, I would rather not spend it if the damage can be avoided. 

Not from Denver, but adding a link to details for those who are not familiar. It looks like an inspection program. Typically the slumlords don't even register their properties so this just burdens the responsible landlords. Interesting to note that this doesn't apply to STR which seems to be a bit of a loophole.

https://www.denvergov.org/file...

@Preston Gealy there is a better comparison to 1990 and 2001, both of which were wars in oil producing nations that lead to recessions. When you hurt oil supply and drive up prices, it affects everything. Anything that is manufactured or transported has oil costs built into it. We also use oil for transportation in a car, bus, train or plane. That affects a persons monthly budget and harms the vacation industry. Oil is used to pave roads, make plastics, produce solvents and other chemicals. Odds are good we see inflation continue to be an issue and we will eventually move into a recession. I can't say when, but I 100% guarantee a recession is in our future, because the economy cycles. Any great expansion period always sees a recession at some point. Recessions have an effect on housing, but rarely does it result in a crash. It could mean prices go up 5% or 10% instead of 15% year over year. 

I will say the factors that lead to the 2008 crash are not in motion right now, so that event is highly unlikely to repeat in the near future. Totally different catalyst and different factors were in play in the years leading up to that crash. The big difference is housing inventory. In 2005 we reached the lowest inventory level and it kept rising from there into 2008 and then peaked again in 2010. Today our inventory level is well below 2005. Assuming "history repeating" that would mean a crash is 3-5 years away. That assumes inventory starts building, which it hasn't.

You answered your own question. This is a remodel, which by definition is an improvement. For example, a repair would be fixing a broken furnace. An improvement is replacing it. Whether something is a repair or improvement is not for you to pick. It is determined by nature of the work.

That being said, there may be ways to accelerate a portion of the depreciation. Certain items allow for faster depreciation schedule or may qualify for bonus deprecation. This is different than categorizing them as repairs, but may have a similar effect of moving expenses into the current year. It is different though, so make sure you are doing this correctly. 

I can guarantee that categorizing all $25K as repairs is not correct. When you are replacing flooring, cabinets, appliances, HVAC, roof, etc. These are all improvements by IRS definition. It is strange your CPA is asking you if they are repairs, instead of categorizing them based on IRS rules.

@Aryan Strauss read what the lease says about smoking. When you applied, did he ask if you were a smoker and if so, what did you answer? If the wording is such that you can't smoke at all, he could argue you signed the lease and agreed to the terms. Then it would be up to the judge to rule if the lease clause was legal or not. Landlords falsely believe they can just put whatever they want in the lease. It seems that a judge would find smoking off the property on the public right away is not something your landlord can control. I would personally challenge the landlord on this. Respond in writing via certified mail stating you have never smoked on or inside the property. State clearly that you dispute his grounds for eviction and you respectfully ask him to reconsider. I would further state that if he purses this in court, you will seek damages and attorneys fees.

The problem now is your landlord tenant relationship is soured. I would plan on moving when your lease expires, because this landlord is likely to issue you non-renewal or raise your rent. They could also retaliate by taking unfair deductions from your security deposit. When you eventually do move out, take photos of everything and have a couple witnesses smell the property, so they can attest that there is no smoke odor. 

My biggest gripe with appraisers is that they like to use purchase price to determine value. The entire purpose of an appraisal is to derive value using comparable, not just appraise it for what you paid plus improvements. I think you made the right call not sharing the information, although it is usually a matter of public record, as are building permits showing rehab costs.

 Call their emergency numbers from their application. Tell their emergency contact that they are missing and you are concerned. Call their employer and ask to speak to them at work. Email them, text them, call them. Google their name to see if they were arrested or died. 

There are clauses in most leases that deal with abandonment, but if all their belongings are there, this is not abandonment. I would post notice to pay or quit on the door and proceed with eviction after trying other methods to contact them.

What is your screening criteria? You mention new construction renting at $1900 per month, but that is not your competition. They are renting A class properties to A class tenants. You are most likely renting a C class property, even if you did a B class rehab. It is not the same tenant class.

The photos you are showing seem fine, but there must be more. Can you provide a link to the Zillow listing so we can see the entire listing?

You say that you believe your property manager advertises on Zillow and Facebook. If you are concerned about getting it rented, you should know where it is being advertised and look at the listings. On Zillow you can see how many people have viewed the listing, inquired and applied. Ask your PM where they are advertising and what needs to be done to get them rented. They should be giving you ideas because they are experts in the market and paid to help you.

I doubt the lender will have any visibility to foreign owned property, unless you disclose it. If you plan to use proceeds from the sale as a down payment, you will need to disclose source of those funds, unless they have been in your bank account for a period of time, at least two month. As far as transferring back to her mother, it is probably more a question of taxes in the country where the property is located. I have a coworker who sold a property in France after living/working in the US for 20 years. His tax burden was substantial in France. Every country is different. If your mother in law gave you money for a down payment, that would be gifted funds. Non citizen resident is fine if you are working here and have social security number for credit verification. I would sit down with a mortgage broker and have them prequalify you and your wife. It sounds like you will be fine.