All Forum Posts by: Mary Cronin

It could be they're on a fixed payment. I receive Social Security on the 2nd Wednesday - so anywhere from the 8th to 15th. I don't know if SSA does a different group every week but there's also disability, different types of pensions etc- all of which could be different pay times. Local teachers get paid their salaries on the last business day of the month. 

"No leak here but slab is collapsing. Bid to build pillars (?) and jack up the slab was $32k. 1984 house. FWIW"

Not my house. My roommate passed away in July and her father has to deal with it. I haven't heard what he's going to do - but realtor said he should. 

No leak here but slab is collapsing. Bid to build pillars (?) and jack up the slab was $32k. 1984 house. FWIW

Find an accountant & attorney(preferably real estate ones). There are differences between the 2 in self-employment taxes, types of income, expense write-offs, health insurance & I don't remember what else. 

I go on basic rule off LLCs to buy and hold and Inc for ordinary income issues (tax liens, overages, etc.) but talk to an attorney when it comes up. 

Installment sales are authorized by the IRS at ... 

Find out the laws re squatters in the location of the property. In some places, squatters gain rights (Costa Rica?). In CA, a squatter can obtain title via adverse possession (if they follow the rules) if they are in a property for 5 years. Other states are longer (20 years on the East coast?). 

Maybe call the local police and ask them what they'll do. 

Assuming the squatters don't have rights to the property, and you get a discount from the owner for taking care of the problem, I'd probably buy if it was something I was interested in. 

Here in CA you call the cops who tell you to secure the property. They'll arrest the squatters if you insist but usually just send them on their way (at least the 1st time). Mine came back and dismantled the house (fireplace mantle, all the built-in cabinetry etc lined up in the living room like they were going to hold an auction of architectural parts).

True enough re gifting. Not particularly a RE issue, but often used in estate planning when family wants to keep property in family.

Same thing here in Stockton, CA. Unless you live here and work in the Bay Area, income doesn't support the increasing prices. BUT very little inventory on the market, so demand is there. But cashflow? Not a chance. 

The Fed has printed trillions of dollars and it's somewhere. (Hm, doesn't trickle down to me.) 

Maybe banks are buying the houses (though with a possible correction in the future makes this looks risky). 

Other than total rehabs, I don't see a lot of investors buying anything. I was looking at 2 MHPs in a different county. One expired without selling (realtor pooh-poohed my saying his $1.4M listing might be worth $960k). I'll wait a while before contacting the seller (- or wait till it goes to tax sale because it's in default).

Maybe with retail buyers we're back to fear-of-missing-out (like in 2004-2006)? Their only numbers are whether they can make the payments.

Your costs are increasing, so if you don't pass them on, it will affect your cash flow. 

The lower income will also decrease your property value. (at least for any property valued based on cap rates) Could be an issue if you have lender requirements for equity (rare, unless your purchase or last refinance was close to maximum leverage). 

So what do you think? 

Will tenants move out with $25 increase?

I'm not a 1031 expert, but I don't think that will fix the problem - I think they keep the same basis (i.e. -0-) for depreciation purposes. 

It all starts over with a sale (but you pay tax on the gain) maybe an installment sale? (tax spread out over term of installments? Talk to a knowledgable real estate tax accountant. 

I'm not accountant but this one is tricky so get good advice. (This is why some people make gifts to family members every year - weird percentages to keep gift value below gifting limits - such as 3.841% - maybe a good attorney too).

This can come back to bite you. Worked on one where several percent of ownership disappeared over 150 years - had to do a quiet title lawsuit to correct title among all the heirs (40+?) so they all received their correct interests. [A 60+ page complaint tracing every transfer for every generation since 1860.]