All Forum Posts by: Scott Ehmer

You should do more research on what a 1031Exchange is and ALL of the rules regarding them. For starters, the replacement property has to be as much, or more than what you sold for. Not the cash at close of escrow, but the entire sales price. Anything that does not go into the new property is called "boot". Boot is taxed as 100% profit. The cost of future construction is not a part of the equation. 

https://www.ipx1031.com/1031ex...

I have been trying to find an answer regarding onsite manager. Does Georgia have a requirement for having an onsite property manager at an apartment complex once you reach a certain number of units? For example, in California, once you reach 16 doors you have to have an onsite manager. I have searched online but cannot find the answer. 

1) There is no legal requirement for the notice of a rent increase to be certified mail. 

2) You are now month to month. 

What is your goal? Is your goal to postpone the increase for another month? Is your goal to create an adversarial relationship with the management company? In the long run how do you think this is going to work out for you? 

Agreed, treat REI as a business. Have a business account that can have multiple properties in it. Definitely a separate account for your REI vs. personal account, but having multiple properties in the one account is no big deal. Just keep good accounting records so you know what each property is earning you.

Agreed, we need more information. What are your investment goals. what kind of cashflow are you expecting to receive in addition to appreciation? We can all project cash flow, but none of us can guarantee appreciation. We can tell you how much an area has appreciated and if an area looks like it will continue to appreciate, but never how much. 

What rate of return are most real estate investors looking for(COC)?

Lets say you have a 100k cash investment in a property, what net return are you expecting to get? For this instance, lets assume you are also getting a 3% increase in capital value each year, and your rate of return increases 3% each year. I know many markets where your COC return is going to be 3.5-4.5% and you will get a minimum appreciation rate of 3%. Would this market interest you, or is that falling short?

 

Sure would be nice if that was really an option. Sadly it is not. ; )

Property Management is a full time commitment. Know that first and foremost. It will consume you. But there are many benefits to it. I am fortunate enough to have entered PM on a commission basis. In the beginning it was very lean, but I built up my business with it. My first year, 25+ years ago was a whopping $14,000 for a full year, but now it is a solid 6 figure income. But that is just the PM part of it. In the lean times, like 2008-2011 my PM income represented 80% of my income, but during the good times, it represents less than 40% of my income... but it is there regardless. Just imagine all of the benefits of a commission income with all the security of a salary income? It can be the best of both worlds. But PM is hard. Headaches all the time. 

I agree with Nathan in regards to it being a full time 9-5 job, but Zeona makes a good point about connections. 80% of my sales are directly connected to my PM. I have many clients I have sold 6-12 properties to. I am also the go to agent for owners that are ready to sell their investment properties. 

Bottom line; it is hard work, but the rewards are there. 

You need to talk to your local real estate attorney. In my location, if you have terminated the tenancy and the tenant failed to move out, you have the right to file an unlawful detainer (eviction). If you start that process, then you end up accepting additional rent, you have negated your original termination of tenancy. You would now have a tenant that is on month to month status. I get the feeling that when you finally get to court, you are not going to have a good day. 

Have you already paid the contractor? If not, I would definitely withhold payment until it is permitted. You may need to undo some of the work to reveal it for inspection by the building inspector. I would also agree with the previous statements. I am not aware of any jurisdiction that would not make a big deal about those things not being permitted.