All Forum Posts by: Chelsea Ross

@Will Fraser thanks for the reply. My market doesn't have many opportunities for turn key small multi-family that would cash flow once I moved out, so I'm trying to be more creative. But maybe I should just be more patient. :)

@Matthew Porcaro do you have a mortgage broker you recommend for 203K loans? 

Hello. I'm in the market for my first house hack deal. My mortgage broker doesn't offer the 203K loan or the HomeStyle loan (offered by Fannie). I'm looking for a creative way to get some immediate equity through forced appreciation. Does anyone have any recommendations for more creative/flexible mortgage lenders? Is it possible to flip something to myself? (ie buy it and renovate it under my LLC with hard money, then purchase with a 30 yr mortgage under my personal name and avoid the seasoning period) I have an excellent credit score but I don't want to leave much money tied up in the deal.

My favorite is The Real Estate Rehab Investing Bible by Paul Esajian. I've read quite a few but I keep coming back to this one. He outlines some great systems to help save you time and headache.

In 2019 I decided to start using a CPA that specialized in REI to help me with tax planning. The CPA was actually recommended on the BP forums. I paid in late 2019, and handed over my documents in March 2020. Despite many emails and phone calls my 2019 return still has not been filed. I keep getting promises of "by Friday" and then nothing. She claims she filed an extension, but I'm really concerned. Is this normal? Is there any recourse I can take?

I found that resource as well. I'm struggling between the two statements:

"We struggled with the definitions in the Internal Revenue Code and finally decided that unless a property is an owner-occupied single family residence, the closing attorney should consider that it might be a business asset."

and 

"The business type is separate from the individual for liability purposes, and the business is taxed through the individual's personal tax return, based on its net income on Schedule C."

If the actions of the LLC will be taxed with my own individual taxes and not as a separate business, would the house be considered a business asset?

Thank you @Eamonn McElroy. I'll reach out. I think the question came down to whether a single member LLC that is a disregarded entity is considered a business for tax purposes or not. Hopefully I can find someone to answer this quick question over the phone on Monday, though I think I found the answer here:

https://www.thebalancesmb.com/disregarded-entity-definition-and-background-398223

I am closing (selling) my first flip on Tuesday. I purchased the SC property though a NC based LLC. The closing attorney sent me a SC Transferor Affidavit Tax Lien Inapplicable form to fill out, for which I must either declare that the assets being transferred are not business assets, OR that less than a majority of the business assets are being transferred. Neither of which I feel like are true. She does not seem to think the LLC would be considered a business but told me to contact a tax professional. I don't even see why it's necessary since they will be with holding taxes for the sale.

Does anyone know of a tax professional that could do a quick, last minute consult for me so I can figure out which tax documents I need to sign to get to the closing table? I don't have one that I work with regularly since this was my first one and I haven't even sold it yet. Does anyone have experience with this?