All Forum Posts by: Joel Scarboro

Have you ever noticed that people can send you a picture of themselves and then when you see them in person you think they look a way different?
I recently dodged a bullet. A seller that I had bought from prior to had sent us a property they were trying to assign the contract for.
I was out of state on a trip and so my sweet wife was the one handling most of the talking with the Wholesaler.

We put down $2500 and moved forward with the deal because the numbers made sense and the video look good. 

When I get back in town, I go and look at the property and it has major foundation issues and needed a whole new central heating and air and ductwork.   it basically needs a major overhaul. 

So for all practical purposes, when the dust clears, I would be buying at full retail, if not more.  

So my advice to anyone that would care to hear it is, do not buy a property based upon a video since a video will not exactly show you foundation issues, and other things that only being in person can help with.
I was more than happy to walk away from my $2500 earnest money instead of buying such a rat trap. 

I will be more diligent going forward when it comes to looking at properties in person, especially if it’s a person that has an interest at stake and are willing to pull a fast one on me.

@Joel Scarboro - are you asking if you can do a CSS on a SFH investment property by yourself? or without qualifying for REPS (real estate professional status)? The answer is yes and yes - you should be able to do a DIY CSS (using kbkg.com/residential-costsegregator or diycostseg.com) for under $500.

You do need to couple your question with the other ones mentioned in replies here - will you benefit from it, will you be able to use all those accelerated deductions? how does it fit in your investing strategy, short-term and long-term?

Tip: don't ask an insurance salesman if you need insurance.

@Joel Scarboro - are you asking if you can do a CSS on a SFH investment property by yourself? or without qualifying for REPS (real estate professional status)? The answer is yes and yes - you should be able to do a DIY CSS (using kbkg.com/residential-costsegregator or diycostseg.com) for under $500.

You do need to couple your question with the other ones mentioned in replies here - will you benefit from it, will you be able to use all those accelerated deductions? how does it fit in your investing strategy, short-term and long-term?

Tip: don't ask an insurance salesman if you need insurance.

Quote from @Joel Scarboro:

In the end it’s a business deal. It’s not your concern on what or why but that it makes sense to your goals. They may just want a tax shelter. Who knows but all you need to know is if it works for you and the criteria of the agreement is set in stone legally by a qualified lawyer let it roll. Just saying.

Well it is my concern if I’m holding the note, the house gets trashed and they stop paying. With $0 down they have no incentive to keep up with it when they can just walk away. 
and if it’s all still in my name, I don’t see how it could be a tax shelter. 

 One of the homes I own only cash flows $100. However the depreciation from that one home is 6k. That’s what I mean as a tax shelter. That 6K goes against my earnings. 

Quote from @Joel Scarboro:

Quote from @Matt M.:

Quote from @John Clark:

Quote from @Matt M.:

I spent 6 mos on a complete rehab by myself, put in about $15k.

------------------------------------

Are you telling me that you don’t plan on depreciation the asset or writing off your repair along with improvements?

 Unless you value your time at zero dollars, you put in more than $15,000.

yes I most definitely value my time, but sweat equity beats sitting on the couch! 

 Joel, not sure how my tax strategy came in to play here with you, but that’s not the conversation 

Quote from @John Clark:

Quote from @Matt M.:

I spent 6 mos on a complete rehab by myself, put in about $15k.

------------------------------------

Are you telling me that you don’t plan on depreciation the asset or writing off your repair along with improvements?

 Unless you value your time at zero dollars, you put in more than $15,000.

yes I most definitely value my time, but sweat equity beats sitting on the couch!