All Forum Posts by: Jeff Rabinowitz

Rob:
At one time I had tenants from DHC, Plymouth and Warren. The only office that offered any help was Warren (the director I dealt with retired years ago). This was even though several workers referred tenants to me because I kept my homes in excellent condition. No more, no more.

In SE Michigan section 8 is extremely difficult to work with. The workers are extremely difficult to contact and if you manage to contact them they are not helpful. The relationship is very one sided. If you have a grievance you are invited to sue the State. I hope that is different in OK. Here I classify landlords into two groups: those who refuse section 8 and those who will soon refuse section 8.

Isn't it interesting how readily the banks can misinterpret your intentions when doing so allows them to charge extra fees or interest?

Fire can be a viable exit strategy. (I'm not advocating arson). I once donated a house to the local fire department for training. They were extremely appreciative and I received a nice tax deduction.

Do not assume the bank will apply the extra payment to principal. Direct them to do so. If you have a payment coupon that indicates additional principal fill in the line. If not include a brief letter with your payment and put a note directly on your check indicating the additional principal amount.

The bank addenda will usually state that they supercede any purchase agreement you submitted. As Wayne posts above, the addenda will state that that the bank has no knowledge of any defects (or anything really), that anyone who stated anything about the property was not authorized to and that the bank won't stand by their statements if they made any. It will also state that the buyer is purchasing the property as is (the addenda will state this several times). If you wish to have an inspection do so before signing the addenda. The banks will not usually repair anything. They may also state that they will not pro rate taxes or pay closing costs or transfer taxes despite what is traditional in your area. On rare occasions you may be able to change some of this but it is much easier to adjust your offer price downward to cover the additional costs.

I agree with Ryan. It doesn't make sense to rent a $400K house for $2K a month. Are you even covering your taxes and insurance? Unless you have future plans for this house you will be much better off selling the house. If you want to be a landlord buy a house, or a couple houses, in an area where the market rents give you a reasonable return.

Your scenario involves you receiving a fee from services provided to a management company owned by your IRA. This is clearly self dealing and is prohibited. It seems that you disagree. Ask yourself if the penalty for violating the rule (the immediate distribution of Your IRA and the assessment of penalties and taxes due) is worth risking for the benefit you will derive. If it is, good luck. Please be sure to let us know how it works out.

Don't escalate the problem. Learn the legal remedies and remove the tenant as quickly as possible.

I know you were joking in your opening but you actually have to be careful about giving gifts like fire extinguishers. I used to give these to new tenants upon lease signing until a lawyer told me that I could be sued if a tenant used the extinguisher I provided and they were injured if it didn't operate correctly. What a country.