All Forum Posts by: Brian Boyd

Carney Title, Loy Carney is a good guy and lawyer. I have worked with him for years and you will be in good hands. 615-864-0770

I tend to eschew Series LLCs for real estate investors. It creates a massive administrative burden since each property needs its own books, bank account, tax ID, and name. It is far simpler to create a holding company and place individual properties in that or to create subsidiary LLCs wholly owned by the Holding Co to hold particular portfolio assets. Feel free to DM to discuss further, if you would like. I regularly deal with these issues for clients and myself. 

Excellent question! My experience is to make sure to paint the rental, tear out any carpet and replace it with LVP, and freshen the kitchen and bathrooms with new hardware (door and drawer pulls and faucets). This will likely keep you around your budgeted spend. Good Luck!!!

Great Question!!!! The Mid State area will continue to grow well into 2023. With the Blue Oval City coming in the Tennessee near the Hatchie Wildlife Reserve near Brownsville, you can expect to see property value increase in West Tennessee. But, the Mid-State is where most companies want to be. That growth is not slowing down. Nissan is building across the I-65 from its HQ and all areas within a 25 mile radius of Nashville's city center continue to see growth. I would have to point you to Columbia and south of that to find any deals as Williamson County is the hottest county in the state right now. Look out to Lebanon for opportunities and Dickson to the west.  Not much between Nashville and Clarksville but if you went there you would not be disappointed. I hope this helps.

Rental income goes on Schedule E. I am not sure that gets to the core of your question but that is how it is reported.

We have two cabin in Gatlinburg and considered the other types of properties. They simply don't rent as well if they can be rented. People are looking to stay in the cabins. There is low inventory right now and the prices are at a premium. It may be worth your while to consider building.

@Heather Turney I cashed out, took the penalty and offset the tax hit by leveraging the depreciation. The returns on investment more than made up for the penalty.

We are actually closing on another short term rental on Monday.

It’s very possible. Good luck to you.

What a great problem to have! An arm's length transaction would require you use the FMV of the property, however, since this is for his benefit, you may consider something less than the FMV of the property but more than the original purchase price. Alternatively, he could do a cash out refi or take a HELOC to deal with this cash needs.

Without knowing more I would say that seller financing is out unless you assume the mortgage. It will be hard for her to actually convey her ownership, absent a Quit claim deed, and secure the note for seller financing at the same time since there is a first position note held by a bank.

As to audits, the IRS usually can audit returns filed in the last 3 years. However, if you amend a return, the clock starts anew. You can start the clock on the scenario above in 2020 for the 2017 return. Hope this helps.