All Forum Posts by: Sheena Drake

Renter with a sad, typical story that is not able to pay the $750 per month........ same story that presents too often with a broken home. She cannot continue to pay $750 per month without collected child support for her 4 children. She obviously does not want to move. Suggestions of reason would be very much appreciated on my behalf. I am trying to not soften to the idea of booting a family to the curb. Yes, I know the situation and it is a truly sad situation for the kids. I want to create a new contract for short term that would be reasonable. We are rehabbing 2 homes now as BRRRR method and likely will not be finished until end of year. Last thing we need is a home either empty or awaiting some rehab before rentable. We inherited the renter with the home. 4 kids=need of rehab. I've thought about asking her to apply for Section 8 assistance but not sure of turnaround time and whether they will require certain things. dollars to cover tax, insurance, mortgage = $343. Seems way too low, especially if she calls for any maintenance. ? New contract for $550 per month through March 2023? We would have more free time then and more likely to get a new renter in the warmer months.

I don't want to be a provider of charity at this point in my life, but I don't want to shoot myself in the financial foot.   Appreciate any seasoned advice.

State Farm will be very helpful to you. They just included a STR under our personal umbrella policy. This is our 2nd rental along with our personal home that is included, so not 100% sure I would have been told otherwise if it were our 5th, but worth checking out since they are long established company.

State Farm is covering our STR insurance

Simon,

please contact Gary Nelson, whom has replied to you. We met via this forum and I am closing in one week on a STR that he has helped with tremendously. He ran numbers, guided us through a few muddy waters, and advocated successfully for the few repairs we requested from the sellers. He is top notch. The lender offering 10% down on 30 year mortgage was a miracle worker for us in a crunch time situation. Don't hesitate a moment to use Gary Nelson as your guide and realtor

well darn.  Thanks for the quick response.

If you purchase a STR and inhabit it to do repairs, are you able to write off the "rent" that would otherwise have been collected from guests? I know as a vacation home you are expected to dwell within the resident for at least 14 days of the year, but other stays that might be needed for upkeep might be write off costs? This may have been answered in one of my books but the thought just popped into my head while working. Appreciate all you smart people out there!

I called and spoke with rep from furnished finder. They won’t give exact addresses to compare to your rental but they will tell you demand for your area and actually give you low/high rent being paid by comparison of bed/bath and whether a room in shared home or entire home/condo.  Be warned they will then start calling your phone to get you signed up but still very helpful. 
also consider calling local employers for nurses because they may have dedicated staff to tell of housing needs and be willing to directly place nurses in your rentals. That’s my approach working here at hospital in Midwest.  

THank you for your expertise.  Much appreciated.

In purchasing for BRRRRs, our bank provides the loan with built in cost for rehab.  So my question is, do you report the cost of the roof to your CPA when you are reimbursed from the bank for such, or wait until rehab completed and loan closed out?  We are in the process of a slow rehab with roof completed in 2021, but remainder of house to be finished 2022.  Which tax year do you use?

I answer with my true W2 job……. I’m a gynecologist.  That usually brings the questions to a close because TMI can be a show stopper. But to cover for the uncomfortable silence that follows, I then volunteer that we rehab then rent. You can hear the sigh of relief for a “normal” conversation