All Forum Posts by: Kadia Lawrence

Hi All,

I would appreciate thoughts/ considerations/ cautions for analyzing a mixed use property that has a duplex with a regular apartment next to a small storefront that's soon to be vacant?  How does one anlayze the store front part? I keep wondering about insurance, vacancy rates, if tenant selection is a bigger/ different factor, terms of the tenancy and differences in opex and capex?  About to go down the Youtube rabbit hole...  TIA.

 Ah okay, thank you. (Yes, the delay can be a bit frustrating.) Thanks Nathan.

 Thanks very much!!  The issue I have is that the section 8 office takes a few weeks after leases are signed to issue the contract and declare the tenant's vs th PHA share.  I guess the proxy might be what the person is paying now provided this isn't their first.  Otherwise, there doesn't seem to be a basis.  My other thought is to use the utility allowance we deduct from the fair market rent for the utilities they will pay for as a value they need to be able to pay. Then 3x that.  However, technically it is not the rent.  The other challenge is for those who pay nothing.  Technically their 3X would be zero.  However, I'd like to see some income showing that they can pay for utilities, and regular living expenses.  (I think that's in line with the idea that rent should be no more than 1/3 of their gross income to afford other expenses.)

If you have a minumum multiplier to qualify people on income, e.g., income must be 3X rent, how do you make the calculation for a tenant using a section 8 voucher?

Also, if you are using one standard set of criteria to review all tenants, both section 8 and non-section 8, do you require a minimum credit score? If so what level do you use?  (I am debating where and whether to reset a credit score miminum.  I would rather focus on the details of the credit report (such as collections and delinquencies and nature of those issues).)

 thank you!  I just saw in the fine print of the HAP contract that they prorate the first month

Hi all - for those renting to section 8, where the term of the lease could start on a random date when you pass their inspection (say April 9), how do you set up terms of payment with the tenant once their portion is determined? Specifically, do you stipulate rent is due on the typical 1st of the month? If due on the 1st, do you pro-rate the tenant's portion of the rent for the remainder of the month when the lease starts and also prorate their portion for the days in the last month up until the lease expires? (The example would be to prorate from Apr 9 to Apr 30, and then pro-rate Apr 1 to 8 of the following year when the lease ends.)  Any suggestions on the simplest way to go about this?

Are there important considerations for having a manager managed LLC (as the only manager) vs a single member LLC specific to 1) real estate buying and holding, 2) for tax filing (E.g., as a disregarded entity) or 3) for how you represent your LLC (e.g., what title you can use to sign off) if you have a manager managed LLC as the only manager vs having a single member LLC?

 Awesome, thanks very much Tony!

 Thanks very much Kim!  I will see how it works

Hi All,

Section 8 (and other entities) understandably require a W9. I was wondering how you have filled your W9 if you have a single member LLC (which is considered a disregarded entity) and ensure payments go to your LLC and not your personal name? Specifically, what name and identification number do you input? I have been that 1) the payments should go to the "Name of entity" listed in Line 1, regardless of business/ LLC name you put in line 2 and that 2) since a single member LLC is a disregarded entity, use your personal name with your SSN. However, I'd want payments made out to my LLC and not to me, so am wondering if I can put my LLC name in line 1 instead with it's EIN instead?