All Forum Posts by: Matt Gilroy

Hello BP,

I was at my rental house this morning making a repair.  The house smells so strongly of cigarettes that I still smell like an ash tray after spending less than 30 minutes inside.  The tenant is fully aware that there is NO smoking inside.  He has been there for about 6 years.  The house needs a fair amount of work because the lack of his cleanliness.  New carpets and paint is a 100% must, especially after the cigarettes.  

Am I allowed to keep all of his damage deposit specifically for smoking if I choose not to renew his lease that is up 3/31/19?  

@Raden Mantuano How is the first month going on this?  

You're in your own echo chamber and can't see/hear/think clearly about this... I think you should set this "deal" aside for 7-10 days, look for other opportunities and then revisit it with fresh perspective and less emotion.  If after 7-10 days of pondering, looking at other properties and figuring out if it's even worth the headache (if it all goes perfect), then re-engage the seller.  Surely that deal will still be there waiting for you.  

Looks like a pretty bad deal... but do update us on what you do.  I'd be interested to have updates in 3 and 6 months.  Too much wisdom in previous comments to just overlook and think it'll work out for you.  It very well could but I'd rely on the advice of those who have done many deals. If numbers don't pan out, on to the next one.  Also - the advice about counting commission eggs before they hatch is invaluable.  I was a Realtor when the market crashed, lost 6 figures of commissions that were "sure things" and that I had greatly anticipated being there.  

Thank you both.  Funny to hear that both don't have any formal agreements. I am not concerned that there will be any issues so maybe that is the way to go?  We just thought it might make more sense to be "formal" about it... 

Maybe the three most controversial conversations!  I'm looking for help with the last one.

I'm looking for input from folks who have partnered on deals with a formal arrangement. JV, LLCs, Partnerships (general/limited) etc. What are things to be wary of when forming a business partnership with family?

My situation:

My dad and I both are interested in partnering together. We understand this will be a business relationship and both want to be formal about it. We plan to purchase a house BRRRR style and ideally keep the momentum going with several purchases to follow. Knowing that we are looking at starting with 1 SFH, what are some best practices when laying out an agreement? Is a JV better than a partnership? Are there things to consider and write out that we might be overlooking?

We have discussed utilizing a HELOC (in his name) and eventually refinance into a 30 year mortgage (likely in my name).

I'm open for questions and comments!

Cheers,

Matt

@Hilary C.

I often come across a thread, article or comment that I'd like to "bookmark" for later reading.  Is there a way to add a "save" button on articles/threads/comments - even if it was for Pro members only.  There is a ton of great content that I have come across and then cant find later.

@Kevin Hunter Great post! I've done a lot of research regarding BAH in the area but I have not read the SCRA.  Where are your properties at?

@Shiloh Lundahl So many great points have been made, I'm glad to be able to revert back to this thread and take nuggets out.  There are good arguments on both sides.  I think for where I'm looking into (Fayetteville, NC area) I can buy and force some appreciation along with cash flow. One thing I don't want to do is buy with hopes of appreciation and not be able to get cash back out.  

Where are some areas with great rents that also has average appreciation?  I've looked around at many markets but haven't found many that have great purchase prices, great rents and 6%+ appreciation.  Am I overlooking something?