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All Forum Posts by: Carini Rochester

Carini Rochester has started 17 posts and replied 538 times.

Post: Nobody is talking about the real impact of inflation

Carini RochesterPosted
  • Investor
  • Rochester, NY
  • Posts 548
  • Votes 342

Thanks for the post! I don't have anything to add.

Maybe you don't see it addressed here because we're so busy with the day-to-day, that we don't have time to think about it. Thanks for giving me something to think about.

Post: Assessing Rental Income Tax For Potential Purchase

Carini RochesterPosted
  • Investor
  • Rochester, NY
  • Posts 548
  • Votes 342

Analyzing cash flow and analyzing taxable profit are two different things. These spreadsheet attempt to give you an average result over a number of years of owning the property. You'll never get a year that exactly matches the spreadsheet. A common saying is, 'If you're investing in real estate and you're paying income tax, you're doing something wrong.'  With your business write-offs and your depreciation, your income tax should be quite low. I'd be interested in any information that @Ashish Acharya offers on this!

Any structure that was built as a single family that is now operating as a two family is suspicious. One phone call to the building department, ask, "What's the current legal use for __address__?" They put you on hold for about a minute while they look it up. The seller's realtor should have done this while listing the property. The buyer's realtor should have done this while representing you. The buyer's attorney should have done this before approving the purchase offer, or at least before closing. You, the buyer should have done this because, ultimately, you are responsible for you. If the seller knew that it was never legalized, then the seller committed fraud. Ask your realtor and attorney about this.

In 'Due diligence' 'due' means, the proper amount. In my opinion, you and the people representing you did not do the proper amount of diligence.

Your family member certainly treated you badly. But, maybe knew something didn't seem right. Maybe you should have listened.

Post: Looking for LLC Help

Carini RochesterPosted
  • Investor
  • Rochester, NY
  • Posts 548
  • Votes 342

I pulled out my records. NYS, Dept. of State charged me $210.00. The company that took care of the publishing was Legal Publishing. They charged $330.00.

The other step is to get an EIN. You do that at IRS.gov.

You also need an operating agreement. I downloaded a boilerplate and filled in the blanks.

This was in 2018.

Post: Finding out value of land

Carini RochesterPosted
  • Investor
  • Rochester, NY
  • Posts 548
  • Votes 342

City's tax rolls will have assessed value. City or county property info site might have the date and amount of the last sale of the land.

Post: How important is cash flow when considering a property ?

Carini RochesterPosted
  • Investor
  • Rochester, NY
  • Posts 548
  • Votes 342

Understood. Depending on an investor's cash position,  going with no cash flow may not be an option. Notice I said that if he sees a good upside in those other areas, he could go for it. Only he knows his financial position. He's got to make the decision. 

I would look for both. 

Post: How important is cash flow when considering a property ?

Carini RochesterPosted
  • Investor
  • Rochester, NY
  • Posts 548
  • Votes 342

Ideally you want both those other wealth building streams AND also cash flow. With persistence in searching and making offers you can get both. If you want the property because you foresee big rewards in those other areas and you can afford to put money into it each month, that's up to you. It certainly happens.

Post: Books on Building Structures, Codes, History, etc.

Carini RochesterPosted
  • Investor
  • Rochester, NY
  • Posts 548
  • Votes 342
https://www.architectmagazine....

Here's a web-site you might like.

Post: how can I make sure that a 'lease option' is fully binding?

Carini RochesterPosted
  • Investor
  • Rochester, NY
  • Posts 548
  • Votes 342

Are you saying you would do a rehab on a house you don't own? And you don't get paid until after the rehab is finished and the house changes hands from the current owner to a new buyer? Probably the seller puts money into an escrow acct that would go to you if they back out. Perhaps you should buy it and flip it.

Post: Last step of BRRRR / equity check

Carini RochesterPosted
  • Investor
  • Rochester, NY
  • Posts 548
  • Votes 342

Its probably okay. Your accountant might like to see the path the money takes through the LLC, then to your personal use. I would deposit the check into my LLC checking account, then write out a check from that account to pay the heloc. On my books it would be entered that the LLC borrowed money from me, then the LLC paid me back.