All Forum Posts by: Kevin L.

I'm about to list a townhome within the city limits, HOA rental permits readily available (capped at 25%). Its a bit higher at $250k - rents are $1,800+. Upper West Side - 2232 Dunseath Ave. Great area. Lots of new retail investment within walking distance.

Got it.  Thank you.  I guess I'll know what is "too much" by getting rejected.  

Still curious if others in this forum have rented out through CSR or Temp Housing Directory.  What they charged above market annual rent.

I'm not sure about your market, but the housing authority sets the rent based on comps submitted here in Atlanta.  I only have one section 8 property and have had good luck on having all my suggested rent increases approved.  

I have a property that until recently was rented long-term.  When the tenant of 8 yrs vacated I freshened up the place and now plan to lease part of the year short-term and the other part I'm hoping to get a 5 to 7 mth lease.  The property is located in a college town where I hope to rent on football game weekends (and use for my family once in a while).  A company found my listing who places displaced homeowners whose home suffered an insured loss and who have a need for temp housing.  

My question, how much above normal (annual) rent should be charged for a short-term month-to-month lease?  The home would normally rent for $2,500 per month on a year lease.    I was thinking 50% above - $3,750?  I was also thinking of structuring a declining rent schedule.  $4,500 month 1, $4,000 month 2, $3,500 thereafter.  Anyone been in this situation and have advice?

No, they are not aware of the checking acct. I just purchased the property and can fund the total excess back to ET if need be.

I just don't know how I pay people or buy things. Not as if ET is going to cut a check for a run to Home Depot. If I pay with my own funds, I can't get reimbursed. Which I don't necessarily care about, but that is a disallowed contribution to my ROTH when I go to sell the property and 100% of the proceeds go back to my acct.

I did not own the first one 100%, the co-owner funded renovations, held a note for the total amount of the reno, and we paid that note at closing. The IRA owned ~75% of the deal.

If ET does not allow for the Single Member LLC funding, can you recommend companies that do. Thanks for your help here.

The last deal I did, I did have a partner who funded renovations. He was paid back upon sale of the property on the HUD.

This time around (only my second rodeo) I own the property 100%. I was going to submit my expenses with the HUD at closing to account for the missing dollars. It is well documented, but again, not sure if that is enough to protect my IRA.

Maybe it is time to step away from ET and go with someone that allows for a Single Member LLC. That seems to be exactly what I need to continue my current practice.

The money, minus reno costs, will be back with ET inside of 6 mths.

Its a personal checking account. You can label these accounts however you like. The name on this account is my name followed by "IRA". That is how the statement reads and how debit card reads. But again, I can put whatever I like there...no real official tie to my IRA.

As an example, lets say I have $50k in my ROTH with ET. I withdraw it 100% to buy a $40k property. ET allows me to fully withdraw because this is for an auction, price is TBD. I then put the remaining $10k in my Wells Acct and use those funds to renovate, pay contractors, buy bulbs with the debit card, etc.

I have used my ROTH, housed at Equity Trust, to invest in properties. These properties require extensive renovations. Getting to the funds and paying contractors timely is an issue with ET and assume this is an issue with other custodians as well? Its more than just paying large contractor bills... smaller transactions like trips to the hardware store for light bulbs for instance. I've tried to pay for them with my cash and have my IRA pay me back, but ET says that is a no-no.

At the advice of my accountant, I have set up a checking acct for my IRA at Wells Fargo. For an investment, I withdraw all of my ROTH funds above and beyond the purchase price of the property. I pay for the property and put the excess in the designated Wells Fargo acct to use for the rehab.

When the property sells, I put all of the sales proceeds and any remaining balance of the WF account back into my ET acct.

Am I putting my ROTH in jeopardy or is this OK? Everything is meticulously documented.