All Forum Posts by: Michael Mastantuono

I recently purchased a house from a wholesaler. all taxes an liens were cleared during in title. However, part of the agreement is that the previous owners get a 6 month lease back (which i was compensated for from wholesaler and previous owner out of escrow). What is the next step i should take to try and ensure the now tenants will be out by the terms in the lease agreement they signed? Should I send a letter or email from my LLC re-instating the terms? There is also possibility they will be out before the 6 months but probably not likely. As soon as they are out I can begin rehab on the property. I was even wondering if it would be worth it to contact them and see where they are in there HUD process to qualify for affordable housing. Maybe it would be worth to give them an added incentive to move sooner. I paid cash for the house so I'm not paying loan fees, just taxes and insurance.

Hi everyone,

I recently purchased a house from a wholesaler. all taxes an liens were cleared during in title. However, part of the agreement is that the previous owners get a 6 month lease back (which i was compensated for from wholesaler and previous owner out of escrow). What is the next step i should take to try and ensure the now tenants will be out by the terms in the lease agreement they signed? Should I send a letter or email from my LLC re-instating the terms? There is also possibility they will be out before the 6 months but probably not likely. As soon as they are out I can begin rehab on the property. I was even wondering if it would be worth it to contact them and see where they are in there HUD process to qualify for affordable housing. Maybe it would be worth to give them an added incentive to move sooner. I paid cash for the house so I'm not paying loan fees, just taxes and insurance.

Thanks.

Yes ill need a cpa. But we're just talking.  With that what about deductions. Anyone able to use the purchase price, labor and materials, interests on loans to deduct from tax burden on a flip? 

ok so why do so many people flip houses? I am the only member of the LLC and I have structured it to be a totally separate entity. However, yes once there is a profit then I would want to pay my self something. But the rest would be used to fund the next deal. Also, if I only currently have one primary residence then I could make the flip my secondary residence while it's being rehabbed? ...but even then i need to hold it for 2 years?

I am constantly warned about tax penalties due to selling a house you flip. I created an LLC that I'm going to use to invest in and flip houses. I was under the impression that only the money taken out as a draw would be taxed at the highest rate and that the rest would be shielded as long as it is rolled over into the next deal. My plan was to use the proceeds from a flip to do two things. One to help fund the next flip and two as down payment on a small multi family. any guidance or suggestions would be appreciated. thanks.

Thanks Brian. I hadn't really thought about one unit being owner occupied. Mostly because the current owner on title is usually an llc. But maybe that was part of the agreement in that transaction from owner occupied to investor. I definitely want the opportunity to set the unit at market rents. Just wondering if it was something obvious that I didn't understand. 

Been coming across duplex, triplex and 4 unit deals with 1 or 2 of the units vacant. Trying to figure out why the llc or whoever owns it would leave them empty. Wondering if it's a red flag that I should be concerned about. 

Hello, has anyone paid for his courses or purchased the books or worked with him before? He has a virtual boot camp coming in October. 

Hello, I'm looking at a duplex in the Columbus area. Wondering if anyone knows what is common for amenities provided by the landlord. Are renters paying electricity, sewer, water, trash, etc. Most likely house is not separate meters so, I guess I would need to put water and electricity in the rent? 

Hello, 

I have to cash to invest but my short term goal is to generate enough cash flow to replace what my previous 9-5 job was providing. 

If you wanted to generate 75-100k a year in income where would you start.

I am leaning toward small multi family, but not sure what is the best way to leverage the financing so I can get as many units as possible. 

DSCR loans seem to be the best way but I'm not sure. Any suggestions.

Open to any markets, long distance investing doesn't scare me.