All Forum Posts by: Bruce D. Kowal

@Michael Donald

You could get scammed if you deal with the wrong people. Thankfully, that's probably the minority but you should definitely be careful with who you deal with. Also, you'd want an honest and performing property management. A good property manager can make a huge difference in your investment returns and can make a difference between a good and a bad deal.

I'm going to put boots on the ground in the next few weeks so I should be in a position to give you the best name(s) then.

@Bruce D. Kowal

In general practice, do you determine the percentage being 50% just based on the number of bedrooms rented out vs. the number of bedrooms in the house? Does it matter if say the landlord is in a tiny second bedroom while the master bedroom is rented out to a couple with a baby in a 2 bedroom house? Just curious what the generally accepted practice is for proration when it comes to mixed used houses like this.

Hey! 

If I'm investing out of state, or somewhere I've never been in person before, 

Is there some way to figure out if I'm buying in a good or bad part of the city? 

I could check google street view, but is there a way I could quantify this in some sort of way to be able to compare apples to apples? 

I'm curious to see what some of the solutions are! 

Cheers, 

Hello, Question on LLCs. I'm in contract to close on my 3rd long term rental on April 18th. My other two are under LLCs then we have a holding company on top of that. Talking to the law firm that set these up they are saying to purchase the property under my name then switch to an LLC after we close. Cost to have them do this $500. There is also a $155 filing fee payable to the Secretary of State for each LLC. Does this process seem normal and is this something I can do to save the $500 or their a-lot to it and I'm better off paying the $500.00. Plan to buy several more so just trying to get a process in place. Thanks BP

Great information - Thank you!!!

Great information - Thank you!!!

May I ask you also about how to help streamline recordkeeping to facilitate soon to come Year End tax?

Im a newbie with 2 rental houses-both properties are in my name and I have individual bank accounts/ with both checking and debit cards to keep my payments and activities separate - I’m saving all receipts to each - This will be my first time doing taxes for my new rentals.
Am I On the right track to facilitate Year End Tax Filing?

Hi everyone,

This year I purchased my 2nd and 3rd rental properties in the STL area. I had a SFH in the area already, which is under an LLC. I have not created an LLC for the other two properties.

I have been collecting the rent from all my properties and putting it in the LLC account. Is this ok? Should I make a 2nd and 3rd LLC? Or should I put all the properties under the same LLC?

Not sure if there are any disadvantages or concerns I should have about doing this.

Thanks,

Kyle

@Eddie L., It does not matter if @Nat Serrano took depreciation or not.  depreciation recapture is on all depreciation you did take or could have taken.  

@Bruce D. Kowal, Maybe there's something new down the pike you're referring to.  But un-recaptured 1250 depreciation as far as I know has always been recaptured at ordinary income rate up to a 25% maximum.

And of course don't forget that you may be subject to state tax and possible surcharge for the Affordable Care Act.

If you go the 1031 route there of course  is no tax.  All indefinitely deferred tax including gain and depreciation recapture  is used to purchase more investment property