All Forum Posts by: Dick Stevens

If it's a 4 unit property I'm assuming you have a residential mortgage. If that's the case, you cannot move it into an LLC. Personal mortgages must be in an individuals name.

Too many people get hung up on LLCs.  You don’t necessarily need one and there is no guarantee that it will protect the owner from liability.  Good insurance and keeping the property in good condition are your best ways to protect yourself.

I wouldn’t give away the original.  My tenants get a scanned copy.

Are you owner occupying it or renting all unit?

2x the rental amount isn’t enough. 3x rent is standard.  Pass.

All the income is taxable.  No such thing as “not a taxable event”.

Why would any decent tenant want to fork over that much rent in advance?  They receive no benefit.  Typically prepaying multiple months is a tactic used by tenants with issues that they want you to overlook.  

Don’t cut the roots.  You could weaken the tree and it may fall in a heavy wind.  I’ve seen it happen.

Aweful deal.  Are the rents way below market?  They are very low for that kind of purchase price.  Also, FYI, there’s no way the insurance is that low on a rental property.

It likely won’t pass board of health occupancy standards due to egress issues.  If someone was to get hurt during an emergency because they couldn’t get out, you would be liable.

Nobody liked my febreeze comment?  Where is your sense of humor?!