All Forum Posts by: Peter M.

@Wade Penner You can but don't have to. Just a business decision on your part. Im not familiar with cozy but do they get a copy of everything you see for the fee? I know smartmove does this so I assume Cozy does too.. If it helps you sleep, they at least got something for their money and may be able to submit it to another landlord.

@Emma Sulkowicz This is a common structure for asset protection. An overall LLC that owns other LLCs like a management company LLC and holding LLCs for the properties themselves. It doesnt open you up to more risk but does open you up to more legal and accounting fees. IMO its not really necessary unless you have a lot of properties. You can also consider a series LLC if permitted by your state.

@Naveed Khokhar I would think you could deduct it but it will depend on what your lease said and local laws regarding security deposits.

@David Ruiz I do agree that is a cool property but seems pretty overwhelming for a first deal. I think you are neglecting how much it will cost to convert this for use as a multifamily. There are for sure a lot of plays here but none are cheap and you should figure out highest and best use. (Airbnb, event venue, retreat center, etc). Its only been on the market for a month. I would be cautious with this.

@Joe Martella Good point. Another good reason not to invest in Jersey. @Peter Morgan It looks like there is a bill heading to your governor to repeal the current law in some cities https://www.desmoinesregister.com/story/news/politics/2021/03/17/iowa-legislature-passes-bill-letting-landlords-refuse-accept-section-8-housing-kim-reynolds/4706645001/

@John Mack Oh and no they would have to submit an application and I would have to be considering renting to them. I dont charge an application fee, just make them pay for their credit check after I review the application so they wouldn't be out any money

@John Mack I would ask why, they are probably looking for something specific like rules against smoking, drug use, running a business, rental arbitrage, or something most landlords would not permit. But if they pushed i probably would let them. Or they could be a new landlord trying to get ideas for his lease...Or they could be a housing authority person responding to a complaint and trying to see if your lease is discriminatory. My lease is very long and detailed. Most existing tenants haven't read it so it could just result in a more informed tenant.

@Kanwar Sodhi if you're not giving them equity then they would want a better interest rate on the money they're loaning you. It might make the deal unfeasible. I wouldn't loan 50k for a marginally better rate, I'd want equity. And I agree with the previous post, 2 months in this market means there is something very wrong with it. 10k per unit is fine if its just cosmetic but you start needing common stuff like foundation, roof, boiler/plumbing and your 40k budget is gone. And for only $100 increase/month? That's 100 months to break even on your investment. Not great.

@Eric Weldon-Schilling You could consider escrowing the money. That way the landlord knows its there and will get paid and you know that if something happens like the landlord is a scumbag you can not release it. A title company can act as escrow and you'll have to pay them a fee and add an addendum to the lease to address it but it can work for both parties.

@Daniel Kern Ya its a bummer. But another thing you could do is buy more properties. Since you have good financials you should easily be able to get loans. You'll usually have losses in the first year to offset the gains from your other properties. And you could do what the super rich do and buy a business or property that you know is a loser for the sole purpose of offsetting your gains.