All Forum Posts by: Melissa Stanley

I keep hearing people say they have 2-4 week vacancy periods between tenants, and I don’t get it…It seems like if I have a tenant move out at month end, even if I show it to a prospective tenant the next few days, they can’t move in the following month.

Example: I had a tenant move out Oct 31, did some touch ups, and showed the house the first week of Nov. almost everyone looking said they’d move in Jan 1. I ended up getting a tenant for Dec 20 so she could move before the holiday.

It’s difficult to show a new tenant the house when the old tenant is still living there, and when I was renting I don’t remember ever being asked to accommodate showings for my landlord. Is this common practice now?

0 Votes

I am renting a single family home and found an unmarried couple who is incredibly interested. One applicant makes 3x rent and has a 792 credit score. The other applicant had a bankruptcy in 2021 and has active trade lines (I can’t see the detail on when these went into collections).

I intended to write the lease to hold both financially responsible regardless of occupancy (effectively making her a co-signer), but I’m worried that I’ll end up evicting him if she ever does move.

Overthinking it? They are otherwise ideal applicants.

0 Votes

Dayton, Ohio

This is a tough one. I’m in Ohio, so I can purchase a property with $40k cash out, invest $10k in repairs, and rent for a couple hundred above the monthly operating costs. It’s quite appealing as a long term investment - even at today’s rates. My excess cash flow per year is around $300k in cash, meaning theoretically I could do 6 deals, but in order to make that salary (HHI $722k) I need someone with the time to do the repairs and manage the tenants. He has been alongside me on the other deals so I’d like to give him equity/skin in the game and I don’t know how else to do it

Quote from @Basit Siddiqi:

Getting a property with a partner / friend will not help you from getting hosed on taxes.

I wouldn't move forward - You mentioned beng a high income earner so your hourly rate is very high. This arrange that you will have will likely be a headache(major assumption on my part).

First - Do not do business with a friend.
A partnership requires three things to be successful - Experience, Capital and Time.
It looks like you have the capital and experience but maybe not the time.

I have my doubts about this working if you have a friend who has weak credit and a limited cash flow. That likely means that they are not good with money management which you are likely expecting from him.

To answer your question, if you are doing long-term rentals, the LLC taxed as a partnership is likely the go to route.

Best of luck.

0 Votes

Dayton, Ohio

I’m hoping to purchase a few properties with a friend/business partner but after meeting with a lawyer am even more confused. Any advice on what setup is easiest and most tax advantaged?

I’m a high income W2 earner getting hosed on taxes (currently own 5 properties). My business partner owns a roofing company but has weak credit and more limited cash flow.

4 Votes

Dayton, Ohio

All Forum Posts by: Melissa Stanley

Melissa Stanley has started 3 posts and replied 4 times.

Post: Long vacancy periods

Post: Bankruptcy on one applicant?

Post: Starting with a Friend (LLC?)

Post: Starting with a Friend (LLC?)