All Forum Posts by: Bruce C.

Another week, another roll off. I think we’ve gone through 4 30 yarders and 1 20 yard (roof). We have just a little bit to clean out of third unit

Roof took longer than expected. Tdi called the day before we were ready to go and said they couldn’t do it because they though some rafters needed to be replaced. Found engineer, he also postponed day before. And those rafters we just had to scab on to. But we are finally done as of today. 

Evicting tenants in 3-2 SF. They are…interesting. Sherif is scheduled to show up Monday since they didn’t get out on time. Sherif actually said he’s had to deal with them over the years and hopes they leave town. JP clerk said she knew one tenant because she worked at the jail for a few years when one of the tenants was there. They all lie to me and try to point the finger at the other roommates (or someone else). Can’t wait to get them out. 

I’ll probably switch gears and get that house ready to rent as it needs much less work.

I had 4 properties on forbearance.   You only have to make 3 consecutive payments after ending forbearance. I cashed out 2 and did a non cash out on a third. A one year wait is the pre covid rule I believe. 

Doing alright here. Looking to buy in Galveston now?

Time for a quick update: 

We’ve filled 2 roll offs of just trash from the triplex and small sf home. Still no power. My 3 position meter socket is supposed to be here next week. Have been having trouble finding some electrical stuff in a reasonable time. Spent $950 for this socket because the $500 units have 128 lead time. SMH. 

So once we got the units cleaned out, we then trashed them again pulling down old sheet rock. Hope to get that mess cleaned up this week. I feel bad ripping it all out.  Someone installed $2-3k of drywall, but they did such a bad job (furring strips every 3-5 feet) plus the smell from random squatters it’s just not worth trying to save. 

If weather works out, I’ve purchased all the supplies for the roof, and I’ve found a crew to install it Friday.  TDI inspector coming then too. Crossing my fingers we don’t hit any major snags. If there are no issues, we’ll spend about $8k replacing a 40 square roof (plus about 12 sheets of plywood). Had quotes for $14k, so a decent savings. 

As expected, the roommates/residents at the end of the street continue to not pay while blaming it on each other. Eviction papers filed yesterday. Hopefully we can get them out without any damage. If so, I’ll take a break from the triplex and do the light cosmetic rehab to get that one rented.  

Had some help from the kids :)

 I’m estimating the triplex plus SF rehab at 110k, putting me at $180k total. Should rent 2800-3200 after that. As long as the city cooperates, I think I can get the pads in for $8k a piece, possibly as low as $4 if I have the time and don’t need to contract it out. I expect them to rent 300-350/month. So I’m looking at 24-48k for 1800-2100 if I do 6 pads.  

Hook em. 

Are those new floors real wood?  If they are lv plank, what brand and style/color?  They look very nice. 

I have someone I use for several homes in Brazoria and Galveston 

 Agree with Nathan here on the 12 mil. I wouldn’t go lower. We put in something under 8 mil in a bedroom and it didn’t last long. We found some good price 20 mil from HD that was 2.39ish/sqft if you bought over 1000 or 1500 sqft. 

Expenses are expenses. Doesn't matter if it is STR or long term. Any non principal expense is subtracted from your income the same way you'd do a long term

Passive income losses are capped at 25k and phased out at 150k agi. Starts at 100k and you lose $1 in deductions for every $2 over 100k.  So if you “lost” 25k on your rental and your your modified AGI is 100k, you get taxed like you made 75k. If you “lost” 25k and your AGI is 125k, you get taxed like you made 112.5k. So a pretty big difference.  That’s why it’s important to get your 401k, fsa, etc withholdings straight (which probably means maxxed out) so you can keep as much money in your pocket as possible. 

 They were asking how to pay less taxes on cash flow. Rental is filed on a different form but that doesn’t matter. If you have profit (after expenses, depreciation, other costs), it plus your w2 determines your agi, and that determines your bracket, and you pay on the total.