All Forum Posts by: Brett Sayers

I’m into my second major rehab and have been purchasing materials for the contractors to use on my credit card.

1. To get the rewards points

2. Cash is tight and I need to keep room for labor as the contractor doesn’t take cards

3. I was thinking I might get a better price on materials if I did a little leg work

I have been expensing all of the credit card purchases as “Supplies” for the Schedule E. I just wrote the check for the first draw and don’t know if I am putting it in the right bucket come tax time. The labor is currently listed under “Repairs”. What I’m wondering is if I could list the materials bought such as lumber for subfloor, flooring, cabinets, toilets, and appliances as “Depreciation” or leave it as “Supplies”. My understanding of it is that the Depreciation expense becomes a stretched out tax deferral, and the supplies / repairs are written off on this years taxes in one lump. Is there a common practice for this, or is it a matter of preference/ opinion for the tax payer?

*** Disclaimer *** I am not taking anyone’s opinions as legal or tax advice. This is for ideas on what to talk to my CPA about towards the end of the year and help save a bit of time.

I'm interested to see what the consensus is on the CRM side of REI Pro. Has anyone kept up with the membership and used it for more than one campaign? If so, how's the follow up on lead tracking with REI Pro?

@Chris Barrett the fear of turnover is pretty big especially when you know there’s nothing you can do about it with title 50 and SCRA Protections. A ray of light though on that.... I had a tenant get PCS orders in December and within 6 days after they left, the next tenants moved in. That’s in the slow season too. I believe in Clarksville.

@Carly Radzimanowski you are up to 6 now? Good times. It’s been a bit. I’ve got 4 there now and just started house hacking my primary residence in south Nashville. Looking for more deals out in Clarksville now. Especially with the event center approval. I could use a local bank lender referral if you know any.

@John Erdei

Welcome. I'd say I'm fairly new to the BP community as well. I'm living south Nashville, working in LaVergne, and investing in SFR out in the Clarksville area. Let me know if I can be of assistance.

@James Murphey I don’t think there is an argument here for establishing oneself as the owner. The topic is really more about how do you face the question when asked by a tenant.

Mostly there is a “be honest with your tenants” point being made. Also there is a debate around what the specific words “private landlord” really mean.

@Erez Toker

I don’t know that I would deliberately tell someone a lie. Usually when the question comes up, the next questions are about background checks and credit issues. I have a pretty strict set of qualification standards for vetting prospective tenants.

I tell them the standards, and some scoff at me even. I’m aiming to be consistent and fair to all tenants. I tell them this from the beginning so everyone is well informed so there are no surprises. (At least that is the goal)

I do enjoy hearing everyone else sharing their opinions on the matter though. This has been a very stimulating forum thread so far.

I hope this gets on the fire round.... I’m curious to hear what the big boys on the podcast think.

@Nicky Reader

Yeah. “Private Landlord” seekers have all seemed to be ones that are not willing to fill out the application for credit/background check reasons. I’ll have to admit, having a strict vetting process helps filter out people who want to take advantage. When most people find out that there is a $39.99 fee through cozy per adult, they think twice and I don’t hear from them again. It may be a good or bad thing. I don’t know, but In my limited experience I have found that it wastes far less time letting the background checks do the work for you.

Thanks for the reply.

I’m consistently asked if I am a “private” landlord, or whether or not I own the property. While I never volunteer the information, I don’t lie when asked.

Why is it important to tenants to know if I own the place or not?

Should I not tell them I own the home?

Is there something I am missing?