All Forum Posts by: Brian Udovich

No doubt the cashflow is not there...but feel the tax benefits of depreciating the structure and other things is helping on an annual basis. I'd like to maximize this if possible. The mower and trailer are a bit extreme but the property is 2 acres (requires a large mower) and the trailer is enclosed to house the mower and other equipement needed to maintain the property. I am strict about only using it there. I'm thinking about increasing the rent to get into a cashflow situation but dont want to loose a good tenant...new to this... i gotta read up on strategies to do so Thanks again! Your candid feedback is appreitiated! (Sorry about spelling...my phone is not suggesting replacement).

Hmmm. Thats not good. I spent nearly an hour on hold the otherday before my lunch ran out...never got to speak with anyone.

I just searched around and i believe you're certaiy right: there is a distinction how losses (not sure about depretiation?) can be used against ones active and passive income. According to a 1986 Tax Reform. As a "non-professional" i am limited to $25,000 applied to my active income if my active income is less than $100,000...prorated thru $150,000. So, i believe the way my accountant is applying the 1/27.5th depreciation significantly improves the outlook of my small time (one property) scenerio even though no real cashflow. I am Still trying to wrap my head around long term depretiation recapture etc... I would love additional input... Thanks again for an active community helping eachother.

No, i'm not a full time landlord or real-estate person. I work full time at a "regular job"...and simply renting out our prior home. I hope i'm not over using depreciation. Maybe this is sate specific (NY state)? I hope my accountant knows what they are doing and maybe others will chime in? Thanks

I'm looking to refinance my single family property and the HELIC i have on it. I have 23yrs left on 30yr mortgage and a balance of $110,000. I also have $30k in HELOC thats gonna need to be rolled in. I'd Like to pay off some other debt as well if appraisal indicates additional loan-to-value exists (im estimating value of house $190k-$200k. Quicken offerring 4.875% for 30yrs, $2800 in fees/costs. Max 75% loan to value. Is this good? Was hoping for lower interest (owner occupied mortgages around 3.875) and 80-90% LTV. Quicken credit check was 780-797 I see Penfed may be geared to investment financing?

Greg: i hope im not doing something i shouldnt when you mention if being able to claim realestate profesional status (unclear that needed to be done or if i meet conditions to do so): my accountant is, indeed, depreciating the structure over 27.5yrs.

Ok. Thanks both for the input. I knew it waant a cashflow generator. But what about the $5090/year in depreciation of the structure and the shorter depreciation of the mower/trailer? I thought for sure those were the big benefits. We get a significantly increased tax refund annually since we started. Just not understanding how much it really benefits in the long run after difference depreciation recapture scenerios (how long i hold onto it).

My wife and I "fell" into renting out our prior residence after we bought/moved to another home and a neighbor asked if we were interested in renting out or old one. We've since had the same “great” tenant for over 3yrs...

Can someone evaluate my situation, or recommend a consultant to do so? I fear that I’m throwing money away…particularly considering future Depreciation Recapture.

Purchased for $165,000 9/2007. We lived there as our residence until 12/2013. I believe value currently at $190,000

Refinanced $126,000 @ 5.25% 8/2010 (23yrs remain)

Currently owe: $111,000

Total Monthly Payment: 1228.17

     Monthly property Tax: $531.59

     Mortgage Payment: $696.58

Annual Property Insurance: $617

Currently also have $30,000 in Home Equity Line of Credit @ 4.25% (will need to be converted to a regular Home Equity Loan soon: estimating $30,000 @ 5.15% for 20yrs and $200/mo

Began renting it out 8/2014 for $1250/mo

My accountant is depreciating the Structure value of $140,000 ($5090/yr)

I’m also depreciating the estimated value of the appliances and carpet at the time at a shorter term (5yrs). Can’t recall the exact values but fairly insignificant…$1500 appliances and carpet?

I’m also depreciating a newly purchased commercial mower ($6000) and an enclosed trailer ($5000) to store and transport it and other equipment to the property over 5yrs (I think) or $2200/yr. I maintain the property weekly but have not begun keeping track of fuel or travel expenses.

Our tax refunds have been great so it feels like, even though no real monthly cashflow, the huge return plus the increased equity (not to mention my “free” storage use of the property and garage) makes this seem like it’s working. However, I’d really like to be able to quantify the real situation…particularly considering future depreciation recapture. I was hoping to evaluate a “sell now” and Sell in 3, 5, 10, 20 years.

I’ve tried a couple Depreciation Recapture calculators but unsure what values to use since we lived there for a while. Also, Does Depreciation Recapture also include the appliances, mower and trailer?

This could lead to  an expansion or exit to this fascinating field of rental property!