Buying a multi family - should I raise current rents??

[blackmet]

Originally Posted by summergrl227

Another question I have is would it be appropriate to ask one of the tenants to pay their rent to me in cash? I will be making a small profit after the morgage is paid, and not that I'm trying to get over on the government (I'm already in the highest income bracket) I'd like to avoid paying extra tax by putting it in the bank. How would I ask a tenant to do this, and is this even appropriate?

As a RENTER, I'd probably think something was up if you asked me to do this. Even if -- actually, even more so if -- there was a "discount" involved.

What, are you that scared my check is going to bounce? I can't even use a money order or cashiers check or something that gives me an instant receipt showing that, yes, the rent has been paid? Are you THAT paranoid? Are you just going to put that money right up your nose?

I'd have a bad taste in my mouth the second you asked me to do that. And if I'm reliable (which I am, I've never missed or been late with a rent payment in my life), it'll make me consider looking elsewhere.

[Robert5]

Originally Posted by summergrl227

Hello!

The specific location is right off Irving and Fedral (for those who don't know - not the most desirable area of denver).

I was wondering if anyone has any knowledge of market value rents for this area and weather or not the current rents are fair?

Irving and Federal run parallel to each other for many miles, rents will vary greatly along that range. You have not provided an adequate location for anyone to give you an opinion on market rents. And being on Federal is a lot less desirable than being on Irving.

[summergrl227]

So update: I had a meeting with the former owner today, and apparently all the tenants are already cash paying. As a landlord, he has not accepted anything but cash for the last 17 years and it has worked out very week for him. Problem solved!!

[davebarnes]

Originally Posted by summergrl227

...cash paying...Problem solved!!

Don't call me when you are accused of money laundering.
The IRS Can Seize Your Cash Through Forfeiture - Business Insider

[summergrl227]

I wouldn't - I would call a licensed accountant and lawyer. Thanks for the tip!

[JWEvergreen]

Our former house became a rental property for us for 3 years. We rented it to a family who was consistently late in paying the rent (by a few days to maybe a week). But they were also consistent in including the "late-fee" in their payment. There was never a dispute. Payments were handled by our managing agent since we moved out of state. Every transaction was documented. Taxes/fees paid and everyone was happy. Cash is the same as a check if you think about it. Issue a receipt and keep a copy for tax purposes. It's all good. Stay on the high road.