All Forum Posts by: Lana Lee

Hello all!

I am curious on what typical Flippers, Landlords, Contractors or Developers budget when it comes to Painting a property that needs rehab or tlc. I know it can vary depending on how much a quality job is needed. 

This question is specifically towards anyone local in the Philadelphia/Bucks County Market. However, anyone's feedback is appreciated.

thanks!

Hoping a RE CPA can help answer this question. I have my SFRs in an LLC. but not in a "company" as I don't qualify as a RE Pro. Currently, our rental income is counted as passive income and flows into our regular (w2)) income and(claimed on schedule E). In past, we used a HELOC to buy, rehab and maintain our SFRs. We could take the interest as a deduction.

From recent articles on the new tax laws, this interest would not be allowed in 2018 as it is not "tied" to the rental property. Is this still allowed if I show the HELOC funds were used on the rental property? What if I took out a HELOC Line of credit and then "loaned " it to the LLC (with appropriate paperwork) which would pay back the loan with interest. Would that be a Red Flag?

I can pull 150K in equity from my properties via a commercial loan but it has higher interest rates, $2000.00 in fees and 4-6 weeks processing time. I could use some interested to offset the income from the rentals, but I don't want to pay more interest than necessary as it effects the bottom line.

thanks for any comments or suggestions! 

Yes thanks Lana Lee, you got that right. I am excited and very hungry. I have a 3 plex and a single SFR under contract. I actually have 2 Heloc's one on my home another on another piece of property I have. They are 2 year terms @ 5.5% from my local bank. 6 month intro @ 1.99%. That is much better than a 15% hardmoney loan. Trying to refi now and get my money back out of the 2 rentals and continue the process.

 If I offended you, I'm sorry.  However, if you actually read what I said, and what Brent said, everything we said was giving him his answers...and then some.  There are many ways to communicate.  If a little sarcasm, that contains helpful statements, where the sarcasm is in fact a tool of that communication to make a point, "me thinks there are bigger problems afoot".

Oh, and one more thing.  Congratulations!!!  That was a great game yesterday.

 ...and, while you are in the dictionary, look up the word "Rationalization".

I do have a question, how did you calculate your COC Return?...and where did that "annualized ROR come from? (Have you found the definition of rationalization yet")?

To answer your initial question, I wouldn't call this a "stupid idea", but it isn't one I would do, or would have done,...ever....at least not on purpose.

I believe you mean *clears throat*  Go Patriots! 

Can't wait! 

;) 

That is what I thought, but they are telling me it is against the law to share credit info. My initial google searches seem to back their claim:

http://www.excalhomes.com/excalibur_home_management_blog/why_can-t_i_get_a_copy_of_my_tenant-s_credit_report

NO!

The property manager should NEVER release the credit report to an owner. READ THIS ARTICLE

The tenant is authorizing you to run a credit/criminal for the purpose of renting. Once they've been screened, that purpose is met. It does not authorize you to use their information for other reasons and you would open yourself up to a potential lawsuit. I don't even keep copies in the office. I don't keep printed copies of their social, date of birth, driver's license, etc. I have a responsibility to protect them from identity theft.

If you are a Property Manager, you should only share the minimum and keep it generic. For example, I won't share anything with the owner until the Applicant is approved. Why? Because I don't want to give the owner a chance to reject them in a manner that may violate Fair Housing.

Here's an example:

"Hey, John. We have a new tenant for 123 Maple Street. They move in February 15th with a one-year lease. Rent is $1,400 a month. Their security deposit is $1,400 and they paid a $300 non-refundable pet fee."

I'm a professional and take my job seriously. If someone hires me to manage their property, I make it clear that I will manage their property and do not need a baby-sitter. If they want to micro-manage their investments and be involved in every decision or know every detail, I'm not the right guy for them.

If your owners demand to know all the details, it demonstrates a lack of trust which means they are micro-managers or you haven't proven yourself yet.