All Forum Posts by: Amir Navabpour

Anyone have a RE friendly CPA they’d recommend?

I think I have decided I want to do cost seg studies on my portfolio to accelerate depreciation.  My current CPA does not have experience doing them.  For those of you who have done this, in what order do you recommend I do things? I am also struggling with getting the numbers on to see the big picture.  Meaning what will this cost, what my short term tax savings are, and what the long term implications are, like when/if depreciation recapture can kick in. 

@Albert Bui exactly. I plan to just make whatever minimum lump sum they ask for. Usually its 5k. The benefits I see are better cash flow, and overall, over the life of owning these properties I shift some of the interest payments to bank toward bottom line cash flow. The only downside I see, is on a spreadsheet, usually the more "skin" you put in a property the lower your COC % goes down, but profitability is more important than that.

@Bob E.  I agree, I never understood those who view debt as something to never touch. I understand the tax benefits but I never understood the value of paying 100 in interest, to get 33 dollars back.  Feels like system wide indoctrination to me.  

Some of my rentals loans have about 20 percent of the debt paid off. Given that we may be going into turbulent economic and times, and I work in an industry going through a downturn I figure now is a good time to improve my rentals balance sheet and improve cash flow a bit. I realize one negative could be the improved profitability will increase my tax exposure but I will probably do some cost seg studies this year to pull some depreciation forward to offset that and then some. Additionally with the fed tightening and raising rates I have some cash doing nothing that I am not motivated to put into the market so whatever small principal payments the banks would require to do the recasts seems like a decent use of money now vs letting the cash sit idle. Curious if any others are considering recasting their loans now, and if not, what downsides you see to doing it?

@Preston Garcia yes

Anyone have any PM recommendations in Rochester? Mine doesn’t return phone calls or emails. Pretty mind blowing

@Drew Sygit thanks for the feedback everyone. Going to take action now. I have to say as a remote investor by far the biggest pain point I’ve dealt with is incompetent and dishonest PMs. I’ve been through many.

@Nathan G. Thanks Nathan and everyone for the great advise. Let me clarify a few things and would love your guidance. This tenant owes 400/month and there's an agency (not section 8 but another government subsidized one that pays 800/month on her behalf). When I say she's current know I mean the tenant missed her portion for two months, (feb and March), but now she's paying her full portion. My PM has been asking her to pay the back rent and no response on that but rent is coming in monthly. This property is in Rochester NY and my PM is more than willing to go through the eviction process but the cost will be almost what back rent is. My PM said based on her experience the judge will rule for us to work with the tenant on an installment plan or something to that effect, so I'm questioning the ROI of going through the eviction process. I have no problem terminating the PM, but I only have one property out there and my prior PM was straight up stealing mls h so I'm hesitant to go through the legwork. In other words, if tent is being fully paid and there's no ROI on an eviction would you still go through with it if you're looking at a dubious outcome?

What would you do in this situation: tenant is getting her rent subsidized through an agency (like section 8), her portion is 400/month. The agency pays 800/month. She missed her portion for 2 months so she owes me 800. On top of that the market rate rent for this house is 1550, so it’s already 350 below market. The cost to evict her is about 600 and my PM thinks that since she’s current now the judge would rule in the favor of the tenant for a payment plan or something like that. We’ve been asking for back rent for a while and the tenant didn’t respond, then said she’d send it and never did. So my plan was to just not renew her but then I found out after her lease ended my PM put her on a month to month without asking me

@Kim Meredith Hampton. Hi Kim, great idea! Super resourceful. What else do you include in the maintenance 101 video?