All Forum Posts by: Account Closed

I am thinking exactly that. Give a month to month rental agreement and when they don't pay, evict them. Steve you are dead on about ejectments vs eviction and I am already engaging a lawer to handle that for me. I have another house where the lady is willing to sign a lease but will probably be a deadbeat tenant. If I can get her to assume a tenant roll will the local court here it as a landlord tenant issue?

On A side note, you an investor in pa? How well do the sheriff sales work for you. It seems the minimum bids are too high, or at least that is what non-investors have told me.

What do you folk thing about converting a previous home owner over to a tenant.  I am thinking even a deadbeat tenant is better than a previous owner still occupying a home.  Reason being, it should be easier and cheaper to get rid of them as a tenant via an eviction.  Thoughts?

You have been very helpful. Although I have liked anything you said. I will let you know how things work out. Thanks again.

I was wondering how much in legal fees.

The house is in weatherly pa. What kind of dollers are we talking? She is crazy. I am willing to layout 2k but she has it in her head she still owns the place.

  Thanks for taking an interest in my question.

 I have the form.  Local court sent it to me.  I just don’t know how to fill it out.  I bought this house at a foreclosure, on the court house steps.  The previous owner is not leaving.  My understanding is  the previous owner is looked at as a “tenant by law”.  I posted a notice of get out or get evicted on the door and took a picture of the notice. 

I don’t understand how to use this instrument for a tenant by law situation.  Do I fill in the amounts and Date paid areas of the form?  Basically what do I need to fill out to file it with the court?

Yes it is in Pa and Thanks

Does anyone know how to fill out this form, or where I can go to get information on how to fill it out. Outside of a lawyer.

Thanks
Bob

When talking to he IRS LOL

I agree market play a big roll but I also think a big factor is the particular bank. Usually the REO listing agent can give you some insight to how the bank in question will react to different offers.

There is one house in my area that was listed for 70k. Nobody bought it, and over time it went down to 60k. The house has mold and a really we basement. A different bank took possession, not sure why, but now it being listed at 90k. Some of these banks just do what they want to do, ignoring local agents and appraisers.

In my opinion if you know your market, you set the price where you need it to be to make money. I thought by law they had to submit your offer. That HUD % listed is similar to what I have seen.

I have been flipping houses for 3 years now. I have been doing this under a c-Corp. I have been taxed as a dealer. I started a new LLC to buy and sell house, plus rentals. I learned about dealers vs investors and the taxes of each. Now I want to buy houses, rent them out for a year or two and then sell them. Of course I want to be treated as an investor, not a dealer. I have read what the IRS looks at for determining your status but am looking for more insight. Do any of you do this. What has and has not worked for you in maintaining your investor status.

I am looking to see how far I can push the envelope, or what others have done.

If I buy a house for 17k, put 13k into it and could sell it for say 100k here are my options.

1 Sell and walk away with 60k gross profit. I would pay around (25-28% fed tax + 8% state tax + 15% self employment tax) on that 60k. I keep 31k and can reinvest the money.

2 I could mortgage for 80k and rent it out for say 1-2 years. Not make much of any money on the rent over the year, maybe 2k. That’s cause of the high mortgage. If I sold then I would pay (15% cap gain tax + 8% state tax) on that 60k. I keep 46k, and while I am waiting that year I got 50k to work with from my mortgage. I have a local bank the charges me only around $700 for closing costs.

I have increased my profit by 15k and it cost me virtually nothing. I may have some minor rehabbing cost at the end of the renal period, along with the mortgage closing costs. However I get my mortgage money as a line of credit, when I want it. It is always easier to find a renter than a buyer. I can list the property while it is still being rented, reducing my carrying costs. I believe short term flipped properties, although empty and cleaner, sometimes have a stigma attached to them. Therefore they can bring in less money than a equal house being lived in.

So the $s say my goal is flipping but play the renting game. I guess the big problem I see is reporting to the IRS a 2k income, followed by 70k capital gain. How many times can I do that in a year? I also have a couple of rentals that are just that but can’t imagine that would buy me much. Plus each deal is theoretically treated individually.

Does anyone have any stories about being force into dealer status on a particular deal and if so, what were the circumstances?