All Forum Posts by: Jon Magnusson

 Was it a selling point when they rented?  It's not like heat or a stove.  It's a luxury item.  I just signed a lease with a tenant that stated that "all appliances are provided as a convenience and any repairs will be done at the tenants expense."  

I wouldn't offer them a discount, but offer to remove it if they don't want to maintain it.  You could always hire a pool guy at their expense as well (raise the rent $50 or whatever the pool guy costs) so that they can still use it and you have assurance that it is being well taken care of.

With that little amount of equity, I would rent it out.  Plus, it looks like you would cash flow nicely.  You could accelerate the payoff with that extra cash and could have the house paid off a lot quicker.  Then when you own it free and clear you can do it again and again and again.  Don't forget to put some $ away for repairs and expenses.  

good luck

Also, thank you for your service.  Does the military offer some sort of property management?  Maybe there is a management company that handles base housing (Pendleton uses a private company I believe) that can help and would possibly give you a discount and advice given your situation.  Since you were talking about buy and hold at each duty station, that same company might service other bases.  Just food for thought.

 I agree with Melissa and if you do furnish it nicely (for professionals) you could definitely charge a premium.  Sounds like you two should talk! 

There should be a clause in your lease that states that if another adult is to move into the property (or her kids turn 18) then you must approve the tenancy.  Check your lease and enforce it. 

 Think of it this way, if you receive $1000 in rents and you pay $900 in expenses then your net income is $100.  That's what you pay taxes on.  That's the short answer.  

Here's a link to IRS Publication 527 that will give you the long answer.  It get pretty complicated if you're not too familiar with taxes and tax code. 

Personally, if I were you, I would hire a tax professional and let him/her deal with it for you.  A decent CPA isn't too expensive especially considering how much money they can save you.  If you really want to learn and do your taxes yourself, H&R Block has classes they teach for about $400-$500 every fall.  It's for on boarding new tax pros during tax season, but anyone can take the class and it covers a lot of the basics.  Just food for thought!

Good luck!  

-Jon

 I would run, don't walk away from this!  He could've easily found 6 properties that positive cash flow.  Plus being in a declining neighborhood.  He's setting himself up for failure!

If you're using him on vacant property then there is little chance for him to repeat the offense.  However, once a felon always a felon.  Trust but verify... I would be really careful about giving him credit cards to purchase supplies.  You might have to deal with him on a different level, especially at first.  You might want to talk to his PO if he has one; there may be a program that gets you a tax break.  Tread lightly, especially since he lied on his application. 

Good luck  

If they are renting on a lease I would assume that they are subject to the agreement on said lease whether the original lease term is up or not.  There should be verbiage in the lease that puts them month to month once the initial period has "expired" protecting you as a landlord. 

I would post warnings in writing to correct the undesirable actions.  If they don't correct, proceed with evictions.  I know that some people (from listening to the podcast) find it cheaper to "buy their tenant" out; meaning pay them to move.  It could be cheaper than an eviction and be less confrontational, helping insure that you get the property back in the best condition possible.  

Good luck! 

 @Dawn, do you have a link to the article?  I'd like to read more.  Also, is there a list of safest hoods?