All Forum Posts by: Jonathan R McLaughlin

I would say make sure you understand the tax situation---not a cpa but if you use it more than 14 days personally  its not classified as an investment property according to the IRS and your expenses, including mortgage interest if you have a loan, aren't deductible. I don't deal with the air b and b things much but I believe that status has tax implications too. 

I’ve definitely seen this, or rather one part of the bank saying it should be fine and the back office part having a different trip wire for return. Doesn’t mean the tenant didn’t cut it awfully close but I’d let it go as long as it was resolved immediately and the tenant paid any overdraft fee. Treat it as you would a processing error from a valued vendor and u are in a good spot. However, I’d be on a sharp lookout for any signs of a deteriorating situation.

@tyler kastleberg “Debt will increase in value as interest rates drop?” I’m having a hard time squaring that idea with the rising rate environment and fed steps. Today’s debt should be worth less as rates rise, yes?

I had an interesting conversation with the COO of a new marijuana company about rents, and he said they knew they needed to pay through the nose for property and those things were all baked in.........see what I did there? to their numbers because of the location restrictions and risk to landlords.

@Michaela G makes the point everyone forgets: the federal govt. is not prosecuting right now but reserves the right to. The Obama era "cole memo" which allowed state decriminalization to stay off the federal radar screen has been formally rescinded--and the new MA federal attorney has stated he has the right to prosecute all involved. Sessions in particular is very anti MJ.

I can easily see a situation where the feds crack down and civil forfeiture rules allow them to seize all the real estate involved. And (my own bias showing perhaps) I think thats far more likely to happen in blue states. Among other reasons, thats where the money and expensive real estate is.

Paranoid? Perhaps, but very plausible. There is so much mainstream money involved that it would definitely go to the courts and who knows how this would ultimately shake out. This court has been very uneven on commerce/state/federal conflicts and there are two new justices.

So...the risks do exist and "everyone was doing it" is ultimately not a very strong defense against a determined prosecutor. Tread carefully.

Bathrooms and kitchens are the biggest visuals...new vanity is only a few hundred bucks and will make it pop...shower curtain and rod on high end and it looks so much bettter. Metal shelf in there too... Agree with cabinets and new appliances, not necessarily granite will look good to renters and appraisers. My mom was a successful realtor and one thing she always did was make the sellers put in metal light switches (and new faucets )a Maybe 5 bucks a piece on the switch plates but one of those subliminal visuals that help people think higher end. Backsplashes and pot racks can look great and are relatively cheap. Pre-finished hardwood a bigger item but the bag for the buck can be huge. Crown molding and baseboards can work well and aren’t that expensive depending on what you use

I might find a reason to take a discreet look around. Some kind of inside grow a distinct possibility. Them buds need lots of water!

Not a doctor but boy this sounds like he is struggling with depression. It is a sneaky illness but it is one that can be treated. Sounds from your post as if he is self medicating now. If you want to help him, maybe get him to a depression screening either at a doctor or free service.

Why would u do that? All you will do is hand your competition an advantage. Buyers over 500 ain’t gonna want the cheap stuff.

Seriously though, the way you described it here (“hey you guys split the water costs and put your share in the rent”) will get you in a LOT of trouble. Check the statute on this before you do anything. If memory serves you can’t even convert mid tenancy.

Steven, in MA you can’t charge for water separately unless it’s directly metered to each unit (rare and expensive to do) in a multi. You can charge any rent you like of course so you can account for it that way.