All Forum Posts by: Aaron Ringel

If you're depreciating the unit you live in, then yes. 

Do whatever lets you look at yourself in the mirror tomorrow morning. I'd wait and see how things turn out. You've already said that you can get another tenant if necessary. 

I've always looked at renewables schemes with more than a bit of doubt, but if you decide to go ahead with it, make sure you claim the tax credit for it. 

Accrue your expenses when you realize them or have a reasonable expectation of realizing them, and recognize your cash inflows and outflows in the period they happen. Any one financial statement doesn't say much on its own. Taken together, they can have predictive value. That said, I'd be very worried about the numbers in your hypothetical. 

People like me will see it. I like to check loopnet for going lease rates to run projections in the absence of better data. That should tell you something.

Shannon, make sure it's not loaded down with deed restrictions or they could move out and keep it dark long after they're gone. 

https://www.nps.gov/tps/standards.htm

That's a good place to start. I wouldn't expect that there is any state incentive available as TN has no tax on personal income. Novogradac is a good resource, but take what you get from their website with a grain of salt. They misinterpreted how the SC credits work, and they may have for other states as well. The code section you need to read is IRC §47.

You need to apply to get the structure certified through your state's historic preservation office. If it's not on the National Register, and it's not a contributing part of a registered district, it will need to be accepted for inclusion by the National Park Service. When you restore it, the work plan has to be approved by the NPS and you have to spend more than your adjusted basis in the property on the restoration work. You have to follow the Secretary of the Interior's guidelines in performing the work. It has to pass inspection upon completion, and they can audit the site for up to five years after completion. 

There is no 10% credit anymore. The 20% credit is spread evenly over five years. There is also a Colorado tax credit up to 30%. The state cap is $10 million in credits per year, and it is available on a first-come, first-serve basis.

I suggest you take the time to do some research on the credit capture process at the federal and state levels, get familiar with some of your points of contact at those agencies to find out from them how to maximize your chances of success, and get a warm coat. The Colorado applications are timestamped and if I were you, I'd be standing outside their office at six in the morning on January 2nd with a federally approved plan in hand.

Don't do it this way. These things require more due diligence than actually buying to hold for rent and they require the knowledge to do a thorough probabilistic risk assessment. It doesn't sound like you're in a place to do that. I suggest you start with tax liens if you want to get into this sort of thing. 

Check your expense figures again. They don't add up. Make sure you are consistent when it comes to monthly and yearly expenses. Why aren't the offices rented? Why is the rent under market, and why are they on gross leases? I think it could be a great deal depending on the answers to those questions. Your owner finance payments come out to $26,500 per year. Make sure you can cover it. You might need some outside cash flow to make it work. It sounds like with the expenses you reported, you'd be running $7k per year year or so in the red as is. Get those offices rented.