All Forum Posts by: William Powell

$1500. Although, I believe the new roof can be added to its on appreciation schedule. Taking the 18k over X amount of years. 

 Yes, make sure you have Landlord insurance and not just some regular policy. In a perfect world, make sure your tenants carry renter's insurance. But I know this can be challenging in C, D, and F class areas.  

Owning in your name isn't terrible. As you scale to 100 or so properties things may change. I have actually closed one of my LLC because tax man charges higher for corps. I saw no significant tax advantages that moved the needle. What I can say is most banks want you to transfer properties into your name before a cash out refi. The LLC is important if you are doing an economic area rehab that requires LLCs and there are other cases but for my small operation, it hasn't been a great thing. These ideas may change in the future and I am not an accountant or financial advisor. I only share how I do things in 2023. The protection thing: If someone sues you because of an accident on your property they are suing your insurance co. But if you beat up a tenant, that's on you. LOL

If you start doing favors they're gonna what other favors. The problem is you have a kind heart. You trying to be understanding and helpful but the tenant isn't doing their part, and in a way, the tenant is taking advantage of your kindness. If you stretch out the deposit next they'll want you to change the rent due date. Because of this new job they are about to get or they thought you said the rent was on the 15th. Then they will ask you to float the utilities for a month. Then they will late pay every month. Then comes the complaining about everything that was there before signing the lease. Nowadays I take problems on the front end as a sign to move on. Remember a tenant is like a marriage. You are trusting them with your house and your peace of mind.  

Makes sense with so many STRs entering the market. 

I'm working with a small local bank now for a line of credit on all the assets so I can purchase properties and refi them after they are stabilized. I like this way because I don't have to pay interest on unused monies.

If the house is nice and people see you working on it prospective tenants should be doing ride-bys. Asking to speak to the owner and asking you rent questions. This happens to me even in small towns. If you didn't do any fix-up or it's complete and no one saw you working, stick a FOR RENT sign in the yard to gauge interest. This lets you know if you can LTR. You can keep these names but pull your sign and try for MTR. If MTR/STR doesn't make enough income revert back to LTR. This is my strategy for one I'm doing in a small town. I recommend you push your first plan hard before you throw in the towel. Near a hospital, plus marketing plus nice furnishings and home equals good customers.

It's amazing how these complaints tend to come up after they sign the lease and pay deposits. Usually a sign of things to come.  I would ask her to put her complaint in writing then I would respond to it in writing a few days later with a denial to refund deposits because we acted on the information we were given at the time of signing.   

I would check to see if he meets my standards without her. If so, I have no problem with this arrangement. It will probably work out. However, if she decides to leave he can still afford the apartment. At the end of the day, a recently divorced person with high credit scores and good pay is gonna keep a roof over thier head. 

I think you should wait to see what else comes along so you can have something to compare them to. If they are the only applicants then that's different but I think if you wait you may have a better option appear. 4 individuals in a small apartment can be hard on a unit. I'm assuming this is a 2 bedroom.