All Forum Posts by: Mandy McAllister

More info here:  https://www.meetup.com/Lifetime-Cashflow-w-Multifa...

Would love to see you there!!

Hello BP Nation!!!!

We need your vote: would this logo deter you from doing a deal, lending or otherwise stop you from working with our company?

We have a B/C property in the western suburbs of Chicago that we are renting to a couple we know (cardinal sin). My husband agreed to hold no security deposit, a rent $300 under market (leases at $1200, should be $1500) and waived late rent payment fees consistently. Now that I've taken over management of this house, I have made the decision we should not renew their lease ending 4/30. In hopes to remain cordial with this couple and ensure (some) care of the property during their move out, I was thinking of promising a few hundred dollars if things check out upon move out inspection, and introduce them to a real estate agent to help them find a new place. I would present these things in a conversation 60 days prior to not renewing the lease. My question- how much would you offer the couple in this situation? $200? $300? Any other ideas of how you might end the business end of this relationship? Thanks for your two cents, BP Nation!!

Depends on where it is. Id only make tweaks if the neighborhood calls for it! What part of town is it in?

Without any repairs or upkeep and self managing, we break even. There's no wiggle room.  I could care less that it's underwater- only the cash flow issue concerns me. 

I left this out of the equation- My former residence is a rental too which cash flows about 600 per month, and I've got almost $100k equity, 4% loan. Would you refi or HELOC that now for cash to address the under water property now in addition to picking up something new with the cash?

Which would you choose to do with 40k?

My husband's former residence is now a rental property for us.  Property is worth 120k, we owe 133k.  Market rent is about 1300 per month.  Loan is a 20 year HARP at 5.25%.  PIMI, and taxes come to $1250 per month.

In order to refi, we'll need to pay down the loan to 75%, and bring 43k to the table (133k - 90k = 43k).  This would make the property cashflow about 400-500 per month.

-OR-

We could take our 40k and acquire another property that will cashflow the same 400-500 per month. 

Would you lock in something new and let the underwater property work itself out over time, or would you rather build a monthly buffer in?

Thanks for your advice!!

Anybody have a CPA they think highly of? My CPA/JD/LLM's team made a pretty egregious error on my return (that I will have to pay thousands to correct) and gave me advice to set up an LLC for an underwater rental property. I'm pretty clear I need a change. Any recommendations?

Thanks for the advice, all. I wasn't worried about recouping late fees, those are a sunk cost- I more needed "how to make this the business my other property is without alienating my husband" ideas. Lumi Ispas I hadn't thought of giving them till peak season next year- I think that's the route we'll go! Thanks again everyone!!

In Broadview, on the boarder of North Riverside.