All Forum Posts by: Mike Hanneman

You should look into a smaller rental for your first one. Go get a single family house or duplex to get your feet wet.

You can then use that property to step up to a bigger one if that's really what you want to do.

Unless it is going to be an executive rental, you will want durable finishes. Anything that is lower maintenance is best in a rental. You should look at your market though and see what other like rentals are doing.

I would first check you state tenant laws about "if you need to put them in a hotel."

Tell the tenants whats going on and go from there. Maybe you can schedule a time with them when they would be out of town.

Your insurance company is charging you more because of knob and tube wiring? How did they find out it was even there? I have never heard of this... knob and tube is not against code depending on the circumstances.

I don't think that offer is insulting at all. I'd start there and see where it goes from there.

Me personally would start with an even lower price, but thats just me. 

What is the reason why you don't want to get it permitted correctly?

For refi the zoning wouldn't be an issue per se. The appraiser will just pull comps based on what the propertry is currently being refi'ed as, you'll have to tell the lender what kind of property it is.

The main issue would be getting the right permits and if having a multifam in that area is even legal, what would happen with this would depend on the city/county/state that the property is in.

The way the U.S. is when it comes to liabilities is you better have all your "i's" dotted and "t's" crossed or you are just asking for a law suit. Should something happen and it's not zoned or permeitted correctly I'm sure lawyers will be lining up for that case.

You will also have issues finding good contractors that would do the work to convert it without proper permitting. Their license would be on the line if they were caught.

FYI Unless your LLC is a partnership of sorts there are no tax benefits to having an LLC. An LLC has pass through taxation so it won't do a thing for your taxes.

I'm all for more money in the workers pockets but this is not the way it shold be done. The people/politicians pushing for the increase have failed to clarify where the money will come from? Do they really think that employers will just eat that extra cost? No the employer will either raise the price of the goods and services they are selling (other busisness then follow suit) negating the wage increase as a whole, or in a lot of cases that I have seen... the employers lays off 2 employees and has one do the work of two people or they outsource the work entirely.  

In a perfect world an all around wage increase would be amazing however, one needs to think like a business and realize the extra cost of wages has to come from somewhere.

Check with your family for contacts that can help you with this. Since they own a real estate office they should be able to guide you in the right direction with trusted people.