All Forum Posts by: Marysue Connelly

I purchased a 22 unit apartment building summer of 2018.  The past owner did self management and was lax and inconsistent with any type of policy.  He has been visiting the property and seems to be advising tenants on how to deal with new management. It seems he had a  tenant who had previously gotten favored treatment. She dislikes the current property manager due to lack of preferential treatment and enforcement of policies and procedures, as well as personality I assume. The management company overseeing the property enforces leases and property rules in a fair consistent manor.  We are concerned about the past owner encouraging legal issues and generally stirring up conflict.  Soliciting ideas on how best to handle this situation. Can we legally ban the past owner from the property?  Is this even a good idea since there is not 24hr onsite management to enforce this.  Also the conversation could continue by phone.  This property is C class with vacant units.  We are trying to gradually convert to better quality tenants.

Excited to attend this event.  I have registered.  My husband would like to come as well.  May I get a second registration?

We have now closed on our multifamily.  We did have an inspector walk every unit.  If I had to do it again I might hire a contractor to walk through all units w/ me and an inspector to walk through a few and the roof and exterior.  The inspectors seem to find small things not to code but items you may not even need to fix.  A contractor would see those and can give pricing on what you might want to change / improve.  One thing we didn't do but definitely should have is a pest inspection.  I now know a company who would have done it for free and saved us $$ in pest removal now.  Definitely ask the tenants about bug issues.

thanks for the detailed response.  Makes total sense.  I appreciate it.

We just closed on our first apartment complex.  In the past we have done our own management.  This 24 unit apartment complex is out of state.  We have chosen a property management company we are comfortable with.  The property manager would like access to our banking accounts to deposit rent checks and also to pay any maintenance fees such as lawn care or general repairs needed.  I'm hesitant to allow access to our banking account even though I trust this person.  Can anyone tell me if this is common practice or are there other ways to provide access to funds for management activity?

It is our 1st multi family.  We have since dropped the 6 plex and the 8 plex after walking through every unit on inspection.  Great advice.  We close next month.  We are anxious but excited.  Beginning to finalize with property manager and price insurance. 

thanks Dave!!! I have heard the term disregarded entity before. Our 1031 specialist (same company as you) wanted us to do that. The atty said we can't set up a LLC without an EIN and that is when our 1031 specialist suggested with speak with our tax specialist. Who I have now heard from and he says we can't do it. Sounds like you disagree. If I'm reading this right. I can't believe this isn't done more often.

HI, We are trying to 1031 a single family rental currently in our own names (husband/wife) to a multiplex under a LLC with both our names on the LLC. We are getting conflicting advice from attorney and 1031 specialist. 1031 specialist says we must buy and sell under same tax ID. If we get a LLC we will have a new EIN number. Seems like we will have to buy the property under our own names then wait 2 yrs to transfer it to a LLC. Are there any CPAs out there who could give me their advice. Seems like this shouldn't be that hard?

thanks Jay.  You're right we are probably just parinoid from talking to atty.  

I am not a slumlord. Definitely take care of things. We do have multiple properties and we do have equity. Our concern is just a sue happy society and visibility to multiple ownership. We are finding many different options as far as LLC recommendations from atty. We do have an umbrella policy. We are planning on multiple LLC's due to the equity. Just looking to hear from someone who may have had the bad luck to have been sued and advice about what did or didn't work in their favor.