All Forum Posts by: Bill B.

@Jay Hinrichs

Put my $100 with yours if you or someone I trust can figure out how to spend it. 

Need to find a BP lawyer willing to donate the time so we can just pay the expenses. 

So in the end they saved you 9 days of pro-rated rent that they didn’t have to? (They could have made you pay rent until the 15th instead of the 6th?) maybe just send them a thank you card with a gift certificate to a local restaurant and pay rent through the 6th?

If you identify more than 3 properties you have to either 1) make the combined value of all properties less than 200% of the net sale (in your case $880k) or 2) buy 95% of the properties you identify (in your case most likely all of them unless you plan to identify 96 or more properties.)

Correct? @Dave Foster

Many posts talk a out the unused depreciation capture living on. 

Does this mean any future real estate the op sells will have the depreciation recapture amount and taxes tacked on top of it? 

If so, is that the only case where it will be revived? (Imagine a world where this is their only real estate investment does it apply to any other sales of assets or sources of income?) does it die with the OP when he passes?

Thanks. 

I went with an out of state tenant to their bank and we both signed a direct funds transfer form for the 3 year length of his lease. I get the money on the first every month, even if it’s a holiday or Sunday. Didn’t cost anything and works perfectly.

We should start a general fund where people can donate/contribute to spending the time and money required to legally punish these people and clean up the real estate investor world. 

I only own one property in MN the rest are here in Las Vegas. With a loan on the property you shouldn’t end up owing MN income taxes but you still have to file. (The depreciation turns the income in to a loss.) If you’re going to have a big capital gain it would be a good reason to 1031 out fo the state to avoid those taxes. 

 As far as property taxes I think the non-owner occupied taxes are insane. In 3 years the property I bought (that was owner occupied) went from $3300 to $4,500 the first year for increases and non-owner occupied status and now have gone up another $1,000. To $5500. 

If you live in SD and can find properties there I’d invest there, especially if you might sell someday without exchanging. 

@Daniel Kong

That sounds about right for keeping llc’s Protected. I went with a large umbrella insurance policy instead. Was cheaper to setup, cheaper to maintain, allowed me to use own bank account and more importantly protected me personally as well. (My fear was always someone’s child drowning in my pool, or walking behind my car backing up.)

CPAs prefer quickbooks because they can import the data. But even quicken is overkill already for less than 20 properties. I don’t even use the rental property version. Feel free to pm any setup questions. 

Every deposit or expense gets assigned to property 1-11 income or property 1- 11 expenses. And then the expenses are subdivided to utilities, Managment, repairs, services, taxes, mortgage interest. (I also have a 12th “general account” of expenses only that are not property specific but I consider part of the rental business and tax deductible. Tax prep, Internet, cell phone, etc.)

So I can give you the total income, expenses or net profits per property as well as total for any kind of expense. But  I mostly use it to compare to the previous year and to fill out my tax binder for the cpa and save a bunch of labor. 

Big savings is checking only 1 statement for mistakes and only keeping a reserve balance in 1 account. For 12 properties I can keep the equivalent of maybe two full property reserves. (I’m never going to owe money at the end of the month of rents minus repairs, so I just keep 2 months of mortgage payments in there.) The rest is sent to mortgage payments in advance to save the interest.