All Forum Posts by: Luke Miller

Agreed. We found a coveted cash-flowing duplex in this market. We paid a lot of money for it, but its in a great location and even if appreciation reverses, it still cash-flows well. The trick is to get with a great real estate agent. @Micki M. and her whole team are great and know the areas well. 

I have never heard that an LLC will limit 1031 exchanges. I'd be curious to know where he is getting his information. In Colorado, it cost $50 to set up an LLC with the Secretary of State's office, but I don't know about California.

One work-around I have heard is making your tenants sign a 31 day lease, but not charging a lease break fee if (for some reason) they decide to leave before those 31 days are up. It violates the spirit of the law, but some might find it useful. 

 Tom, they will enforce it the same way they enforce all other zoning ordinance and that is based on complaints. One bad tenant throwing a loud party and your investment strategy is shot. I thought about doing it for a while, but everything seems up in the air right now. 

@Derek Townsend - Welcome. 

What is your strategy with VRBOs? Denver City Council looks like they will be eliminating the "serial investor" from short-term rentals. Just wondering how you are planning to work around this. 

Hey @Jeremiah H. I was in a similar spot as you a few months back. I inherited some terrible tenants who had all kinds of excuses why they weren't paying. The biggest mistake we made was giving them time and flexibility. 

If I were to do it all over again, I would still buy the property, but my first stop after closing would be delivering a 3-day notice to quit and aggressively demanding past rent. With our tenants, they had been evicted twice before, so they knew the process and scaring them into paying did't work and we ended up going through with the eviction. In Colorado, it is a simple process, i'm not sure how it is in Fl.

@Micki M. is right, before you buy make sure the current landlord gets you a rent roll. If they are 24 days late, chances are they have been late before and that should make your decision easier. If they have been loyal paying tenants for years, perhaps it is worth keeping them and giving them a break. 

Ultimately, I'd prepare and budget for an eviction and the costs of repair that go along with a tenant being forced out, and move on. If it is a good property and good location, an eviction shouldn't change your mind. 

@Matthew Arnold do your research before you look into Denver specifically. City Council is currently looking to crack down on residential short term rentals and could perhaps bleed over into commercial. I haven't heard anything about it, but if there is tax revenue to be made, it won't be long before they look to regulate. Hopefully, that does't put a wrench in your plan, but good luck!

Awesome. I agree, next time i'm subbing more out. I can't do it nearly as quickly or efficiently as the pros. Great pictures. 

I'm with @Joshua. How is this different from a REIT? I really like the concept of making it accessible to everyone though.

 I hadn't thought about that. How often do you seal them? I would like to have them in my personal kitchen, but not if it is constant upkeep.