All Forum Posts by: Kristen Schaefer

@Brandon Hall

Thank you for all you contribute! I'm new to the community and I recently downloaded and read your REPS guide. I also had a meeting with Lew Grant and considering coming on board as a client.

I am stumped on one part of REPS that you mentioned in your guide. You said you need to own 5% of the business you are materially participating in.

If outside of managing my rentals I work as an unofficial "property manager" (I'm not licensed in CT) for my in-laws managing 2 of their long-term rental properties. Can I count those hours? I am paid directly by a check in my name, there is no official business, and I do not receive a 1099 form from them at the end of the year. They pay me $6K annually.

Your guide mentions you need to own at least 5% of the business if you are an employee, but since I am working as a sole proprietor would these hours count? Does the IRS care if by CT laws for official property management?

bhall005

@Brandon Hall

Thank you for all you contribute! I'm new to the community and I recently downloaded and read your REPS guide. I also had a meeting with Lew Grant and considering coming on board as a client. 

I am stumped on one part of REPS that you mentioned in your guide. You said you need to own 5% of the business you are materially participating in. 

If outside of managing my rentals I work as an unofficial "property manager" (I'm not licensed in CT) for my in-laws managing 2 of their long-term rental properties. Can I count those hours? I am paid directly by a check in my name, there is no official business, and I do not receive a 1099 form from them at the end of the year. They pay me $6K annually. 

Your guide mentions you need to own at least 5% of the business if you are an employee, but since I am working as a sole proprietor would these hours count? Does the IRS care if by CT laws for official property management? 

bhall005

Hi BP Community, 

I've spent hours on blogs and I'm still stuck. 

I know for certain from my details logs I have about 600 hours spent on rental properties that I 100% own and materially participate in. I want to confirm my real estate professional status, and there are about another 200-300 hours I spend as a property manager. 

Does the scenario count toward the hours needed for REPS qualification?

I spend hours working as a property manager for 2 long-term rental properties owned by my family. I get paid 10% of the rent collected.

1. I do not work for a property management company, I get paid directly by my in-laws for the 2 properties I manage.
1. Does that mean I am 100% “owner” of the property management “business”? I would be acting as a sole proprietor and not an employee.
2. I earn $6,000 over the course of the year and they do not send me a 1099 at the end of the year. The checks are written to me directly and not a business name. 
3. I do not have an EIN or an official property management license.
4. I do not own any percentage of the 2 rental properties I manage.

I look forward to what the community has to say. 

Thank you!

Hi All!

New to investing, I bought a triplex last year in Boston (Jamaica Plain).

I’m scared that I bought a property that’s going to be a financial mess. Bathrooms need to be renovated, but I’m hesitant to move forward.

I have outlined my concerns below, any help from the community would be amazing!

- I want to renovate the bathrooms, but I’m concerned there are existing code violations. No windows that open (only frosted blocks for light) and the only heat source is from the ceiling light/vent/heat combo. I’m unsure if the heat/ventilation are enough to meet code. Tenants are happy and no complaints.

If I take out permits to have the bathroom renovated will the entire bathroom need to be brought up to code? If I get a permit to replace the tile and the bathtub will the inspector also inspect ventilation and heat? I’m also nervous that while they are at the property they will insist on looking around the building and might spot additional code violations?

- Possible code violations:
- The basement is attached to first floor apartment and has a staircase that might not meet code requirements. The 2 bedrooms down there have windows that are smaller than code requires, the bedrooms do not meet code. Would I be forced to end their lease or pay for new their housing if 2 of the 4 bedrooms are not to code and legal bedrooms?


I want to update this property, but I’m scared there are violations I might not yet be aware of and if an inspector comes in I’m going to be forced to make a lot of updates that I’m not financially prepared for so soon.

Overall it’s a nice property, tenants are happy.

Any advice would be a big help!

Hi All! 

New to investing, I bought a triplex last year in Boston (Jamaica Plain).

I’m scared that I bought a property that’s going to be a financial mess. Bathrooms need to be renovated, but I’m hesitant to move forward.

I have outlined my concerns below, any help from the community would be amazing! 

- I want to renovate the bathrooms, but I’m concerned there are existing code violations. No windows that open (only frosted blocks for light) and the only heat source is from the ceiling light/vent/heat combo. I’m unsure if the heat/ventilation are enough to meet code. Tenants are happy and no complaints. 

If I take out permits to have the bathroom renovated will the entire bathroom need to be brought up to code? If I get a permit to replace the tile and the bathtub will the inspector also inspect ventilation and heat? I’m also nervous that while they are at the property they will insist on looking around the building and might spot additional code violations? 

- Possible code violations: 
-  The basement is attached to first floor apartment and has a staircase that might not meet code requirements. The 2 bedrooms down there have windows that are smaller than code requires, the bedrooms do not meet code. Would I be forced to end their lease or pay for new their housing if 2 of the 4 bedrooms are not to code and legal bedrooms? 


I want to update this property, but I’m scared there are violations I might not yet be aware of and if an inspector comes in I’m going to be forced to make a lot of updates that I’m not financially prepared for so soon. 

Overall it’s a nice property, tenants are happy. 

Any advice would be a big help! 

-