All Forum Posts by: Aaron Osgood

I am by code a real estate professional. My wife is an attorney. We plan to file 'married filing jointly'. Through my real estate investments we can take about 400-500k in depreciation with bonus depreciation which should cover my realtor/wholesale income and her w-2 income. 

I am assuming that since we are married filing jointly that my depreciation losses will pass through to my wife's ordinary income. My question is, do we both need to be real estate professionals to take all of the depreciation or do we qualify if I am the only one as long as we file jointly?

Hi @Mike K. - I think you should really dive into the responsibilities. Is your cousin picking finishes, keeping track of contractors and payment,  arranging deliveries etc? If there is an issue, who gets the phone call?  How much of a rehab is it?  I'd say if someone is doing the above they should be getting 10-15% minimum. If you can negotiate less, good for you, but remember you get what you pay for! 

@Dmitriy Andreyev - With that kind of budget i'd suggest looking in West Philly - around 54th st. Stay close to the Market Frankford line. Good value in my opinion. Should be able to pick some things up around that price.

Hi Mauricio- Investor in Philly as well. I own properties in West Philly, Brewerytown, Fairmount, and some South Philly. I work with a lot of out of town investors and could help you out with checking in on properties. Let'ss connect. 

Here is the deal: a colleague of mine purchased a house for 135k, well under market. Cash and closed. He now owns it under his entity.  

Instead of selling it to me, he wants to create a partnership where 'we' as a tbd entity buy it for 175k and he will put in 75k as equity. We will then get a loan for a new construction duplex and split the profits 60/40.  We both guarantee the loan and i don't put any equity in besides my time, construction management.

Instead of selling the house to this new partnership and having to pay the expensive Philly transfer tax (2%) twice, should i join the entity? I want the bank to finance the 175k acquisition price so that also makes it a little tricky? Any advice is much appreciated! Obviously an attorney can best answer this but before i start spending the big bucks i figured i'd give BP a shot!

Hi all,

I purchased a property to flip as an LLC in Pennsylvania. After I sell it, what kind of liability do i have? I will be completely truthful on the seller dislcosure.

Im just thinking through the worst case scenario. Obviously i hope my buyer is happy for years to come.

Say a there's a leak in the roof or something or some structural issues pop up.

Thasks for your feedback!

I am rehabbing a 3 story rowhome in Philadelphia and had to replace the roof. Therefore, I also decided to make the ceiling higher but I am left with a 2ft space that is not consistent with the brick front. I plan on Repointing the front but have no idea what to do with the added area. Trying to be as cost effective as possible and ruled out putting brick there.

Are custom cornices very expensive? My budget is 5000 for the front..

Hi All,

I'm rehabbing a 3 story rowhome in a good neighborhood in Philadelphia (Fairmont). Approx 1600 sq ft, nice finishes etc. Hoping to get 500k for it.  One of the issues is that the city owns the house next door and it is boarded up and vacant. I've been trying to buy it but the bureaucracy has been brutal.

Anyone done anything similar or am i treading in dangerous waters?

Thanks for the replies, will i be notified if/when he files the lien?