Good Tenants Make Good Landlords

Posted on April 11, 2008 by Kyle Kruidenier

Four Legacies Mortgage - Chief Inspiration Officer - Brent Rauch recently put together an informative article addressing the phenomenon of accidental landlords  if you review his article pay special attention to the section titled: Tenents of Tenants. 

It has been my experience that the wrong tenant can make being a landlord a nightmare (side note: the 1990 movie Pacific Heights with Michael Keaton, Melanie Griffith and Matthew Modine comes to mind).  Making a poor choice when deciding on a tenant can turn the once profitable rental property into a money-pit.  The inconsiderate tenant will eat into your profits both though extra damage to the realty and through the non-payment of rent.

Bottom line for success as a one or two unit landlord:  First, choose a property that will increase in value at least as much as your market average. Second, just as Brent suggests, do your due diligence when selecting a tenant to rent your property and with a little luck you just may find that being a landlord can be both enjoyable and profitable.

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Medicaid Transfers Look-Back Period

Posted on March 8, 2008 by Matt Gardner

Medicaid benefit eligibility is based upon the resources and income that an individual has in their own name.  If some has has limited assets and limited income, the Medicaid program covers medical bills and long-term care for older or disabled individuals.  (I'll cover the specifics another day.)

It used to be that the day before someone needed to go to the nursing home, they would transfer their assets to their children or grandchildren and then apply for Medicaid benefits.  The government got wise to this idea and changed the application process to include a list of any transfers of assets for the three prior years.  Specifically, any transfers made for less than fair market value (e.g. gifts).

Now, the law looks at transfers in the past five years in order to determine eligibility.  Again, sales don't affect eligibility, but only transfers for less than fair market value.  But transfers in the past five years will impact one's Medicaid eligibility.

The Medicaid eligibility rules and exceptions involved in the Medicaid planning process are complex and involved.  Be sure to work with a knowledgeable advisor.


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