All Forum Posts by: Tom Gray

Lease is up at end of April and I sent renewal letter. Tenant #1 initially found the house and did not qualify on her own based on income, Tenant #2 qualified on her own and they both signed a 1 year lease. The living arrangements have not worked out and both stated they would like to stay in the house. Tenant #1 has not kept steady employment and needed help from tenant #2 for rent and other living expenses. Tenant #2 would like to resign a lease with her and her boyfriend that would also qualify for screening standards of income, credit, etc. 

I know this is a very delicate situation and wanted some feedback on how other property managers might handle renewal. The best options I came up with so far are 1. Terminate their current lease and resign a new one with tenant #2 and boyfriend. 2. Terminate the lease and find new tenants.

What would you do? Thanks in advance. 

@Mitchell Litam

Looks like efflorescence. Harmless but unsightly.

@Nicholas Reyes Did you try peer to peer lending like prosper or lending tree? Sometimes credit card companies will offer personal loans with high interest but no origination or prepayment penalties for that amount. I used discover for a 30k personal loan for a rehab while I was waiting for a refinance on another property. It cost about $230 in interest and the money was deposited within 7 days with no paperwork. If you try this make sure you have money set aside for payments and you plan on paying it off quickly.

After two years of tax filings your rental income will be considered when the bank is underwriting your loans.

How does starting a property management llc to manage rentals impact taxable income If an investor has properties in their own name? Would this strategy be used more for asset protection since management company would handle rent or tax reduction?

I have used rentalutions.com for a few years and I love it.

I have been using Lodovico & Associates for 6 years and very happy with their service. I sit down with Tony every year with new questions on current filing and advice for following year. He also owns a nice portfolio of real estate so I feel like he knows how to maximize my returns.

I have used the same CPA for 6 years now but I feel like he might be charging me a bit too much. I usually sit down with him for an hour every year for planning. I prepare profit loss statements and categorize everything except depreciation, he files for a W2 and 5 rental properties. What is reasonable to pay a CPA for that type of return? Is $695 too much or just right?

The lenders and mortgage brokers I have used and talked to usually require a 12 month seasoning period to refi 80% of new appraisal value. You could pull money out quicker but only based on purchase price. I have done this two times with auction properties and once with REO property all purchased with cash.

Finance, I also took a class on real estate principles and real estate finance while I was in school and they may offer those types of courses.