All Forum Posts by: Buddy Holmes

if you can afford the monthly cost ...

if you plan to return to this area in a few years, look at the cost of selling the home vs the negative cash flow. also as a small part consider the possibility of appreciation. DON'T COUNT ON IT just consider.  But also count on vacancy, repairs and PM as well as tax, insurance, etc.

not much to analyze. you have significant negative cash flow.  YOUR tax estimate looks like an input error at $20 /mo.   Look for another deal.  Start with something approaching the 1% rule before doing an analysis.  Don't give up, keep looking!

THE DEVIL IS IN THE DETAILS. Roofers have to estimate what they will find under you shingles.  If the plywood under is rotten it must be replaced at extra cost. Same with roof rafters and  eve rafters.  

pay attention to the details of the estimates.  They are must likely closer than you think.

I took a look at the IRS guide.  WOW  LOOK LIKE YOU NEED A LAWER TO DECIFER!

EG HVAC seem ok in one case and prohibited in another. Seems like a nice list of typical 5 yr and 15 yr property would be beneficial.  Anyone seen such a list?

Most Cost Segregation Studies that I have seen were done by Professional Engineers.  What does the IRS look for?

Cheers

search youtube.

Several Brandon classes for you.

Hello David,

As Dave Ramsey would recommend, "If you are serious about accomplishing your goal."

1) go on a strict budget.

2) get a second and third job, anything to get extra money.

3) live like nobody else now so that you can live like nobody else latter in your life.

Cheers,

Buddy

I don't think there is a definite time period.  Your intent is required, like you say.  I would want the purchase and repair on one tax return.  Put it up for rent ASAP, as repairs prior to this are not expenses but cap investment.  REPAIRS AFTER RENTAL are.  I you have trouble renting after completion, endure a few months with proof and then sell, reporting on a later years tax return. 

@Christina Yoon 

Thanks for your insight. Use of tax software requires knowing enough about taxes to answer the questions correctly.  Same for any program, GIFO.

Cheers

@Michael Plaks 

Thanks for the insight.  Yes My K-1s are passive not active passive losses.