All Forum Posts by: Josiah Pisel

I ran my Property Management Co. as an S corp, and I was treated as a employee of the company and got a salary  (my CPA recommended this entity, it minimized my taxes). As a shareholder of the company I also got disbursements which are taxed at a lower rate than my salary...

My understanding is that doing flips and new construction it is best to be under an LLC (and I believe that you can be an LLC and elect to be taxed as an S Corp).

Sounds like its time for you to add a CPA to your team. Better to it in the beginning!

as @Paul Ewing said some agents/investors are just trying to save a little bit of commission and maybe they are in a hard spot a need to sell. Agents are held to a higher standard, but I would rely on the numbers.

Occasionally you will get people who are 1099, retired, trust funders... I would get previous tax returns, a couple of months bank statements, previous employment references what ever it would take for you to feel comfortable. 

In addition to doing income/employment verification also get previous rental history (this may not apply to this particular person), credit checks (can also help if income is hard to verify), personal reference, pet reference (if applicable), criminal background checks

You may also be able to charge first months rent, security deposit, and last months rent (for more security if your worried about there ability to pay)

I found that going through the whole application and talking with references, checking credit, criminal background you tend to get a "feel" for how the person would be as a renter. Some applicants are no brainers and others you end up wavering a bit. If the market was such that there wasn't many people looking I would charge a last months rent for that person I was wavering on. And then keep an eye on them, make sure rent is always on time, and do regular checks on the unit to make sure there is no damage. After a couple of months you'll become more comfortable (hopefully). 

Hans  - I certainly don't have experience with multifamily septic systems, but I have been apart of building a few single family septic systems.

Septic systems are sized based on the number of bedrooms. Leach fields are sized on how the soil perc tested and the size of the tank. A new septic tank or recently pumped tank will be empty and will first fill up primarily with liquid once the tank is full with liquid it slowly drains into the leach field as solids (mainly from the toilet) come into the tank they displace the liquid eventually all the liquids will be replaced with solids (full tank). If the tank is not pumped at or before capacity it eventually overflows into the leach field where it will plug up leach field...eventually. 

Just make sure the tank gets pumped at regular intervals 2-5 years (depending on size and usage, could be more or less frequent). If the system is under sized (to many bedrooms) the tank will need to get pumped more frequently.

The other thing to consider are roots from trees and bushes they have a way of getting into (clogging) septic lines.

I would try and find out when the last time the tank was pumped, and when they recommend pumping. I would also suggest getting a camera down in that septic line to see if there are any problems with the leach field and/or pipe (ground may have shifted, possibly resulting in a broken line, or if there are any roots impeding drainage)

@Abel Curiel 

Thanks for the suggestion on keyword alerts, I'll start using it! It doesn't seem that there are a lot of active users here in MT, hopefully that will change soon. 

Ive been lurking around the site over the past few months and really in awe of what an amazing resource this site is. Hopefully I can provide some value here!

I recently moved to MT from Alaska. I was managing a few hundred properties then I sold the company, bought some land subdivided it, built a couple custom homes and kept one as a rental. The following year did a flip in Portland, Maine and a remodel in Sedona, AZ. I then got my RE license here MT and am planning on getting into the development end of RE. I am looking to build some "cottage housing" and am also really interested in doing the "BRRRR strategy" on multifamily buildings.

I'd love to connect with people in and around Bozeman area!