All Forum Posts by: Chelsie Hall

I hear that I should utilize cost segregation to calculate my depreciation in this first year of renting, but every calculator I find starts with the question "How much did you pay for the house?". I bought a new house and rented my previous residence. I purchased my previous residence in  Dec of 2013 and refinanced in August of 2020. Do I qualify to take advantage of bonus depreciation?

Tim, you were exactly right! They were great salesmen but dropped the ball so badly on maintenance requests that he left me open to a lawsuit regarding a cracked glass door that he took so long to fix that a child ended up putting their hand through the glass. Thank God no one was hurt and no lawsuit was filed. I'm now self-managing using RentRedi. The tenant is happy and I'm enjoying the added cash flow. I'll probably self-manage until my numbers demand I hire someone.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $191,290
Cash invested: $17,000

This was my original primary residence purchased in Dec 2014 for only $152k in a highly sought school district. It's a 4/3 that I did a cash-out refinance in 2020 for $191k. I did an addition with a dining room and home office and remodeled the kitchen. Then I found BP and started renting it in Feb 2023 for $2,545.

What made you interested in investing in this type of deal?

As a single mom living paycheck to paycheck, I thought retirement was a pipe dream. After reading "Rich Dad Poor Dad" in order to break the "poor" cycle for my kids, Audible suggested "The Book on Rental Property Investing" which made me realize that it wasn't too late to break the "poor" cycle for myself.

How did you find this deal and how did you negotiate it?

It's very easy to negotiate with yourself. I just had to talk my kids into moving out of a home that was finally NICE and into a new school district.

How did you finance this deal?

I took out a HELOC for the down payment and closing costs for the home I needed to purchase to make the move.

How did you add value to the deal?

The kitchen remodel and dining room & office addition made the home popular even though her curb appeal is less than desirable. I replaced the carpet, updated the door hardware, and mulched the landscaping before renting.

What was the outcome?

I'm cash-flowing $863 per month—or, $10,359 per year.

Lessons learned? Challenges?

Having a property manager in the beginning took the fear away which enabled me to emotionally take the leap. It taught me a lot, but I'm self-managing now and prefer it this way.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I had a phenomenal mortgage broker, Dennis Knisley at People's Home Equity, for my original purchase of this home. He also helped me with the refinance for the cash I needed to remodel. So he was the obvious choice to walk me through the steps to qualify for my next home.

Thanks for that insight, Troy. I really appreciate the push in the right direction.

I met with a local CPA that supposedly specialized in real estate but he advised against it without even asking what my strategy was—which is buy and hold until I die! He also pushed me to sell my rental home (to an LLC or family member) in order to take advantage of something only available in the early years. I know I'm no expert, but I don't like being told by an expert what to do without also being taught why. I guess I should keep looking for a new CPA.

I'm in my first year as a landlord. I bought a new primary residence and rented my old home. Can I claim all the repairs and updates I made in order to get the home "rent-ready" as expenses? Also, I know nothing about depreciation, but I hear I should be filing accelerated depreciation this year. Any insight you can give would be helpful.

Fortune favors the bold.

These recommendations were so very helpful—THANK YOU ALL! I am just so grateful at the time this community is willing to give to help other investors.

Here's what happened. I asked two other companies for PM contracts and sample leases. I reviewed it all. One company called (and emailed) right after my inquiry. We talked for 45 min and never once did I feel dismissed or SOLD, just informed. He then came out later that day and again we talked for an hour. Although his fees are the same, he is part of a franchise that has sophisticated systems in place, so reporting and such is available 24/7 for both owner and tenant. It felt more like a hospitality company than a real estate agency and that really resonates with me. My tenants can opt-in to convenience options at no additional cost.

I signed on with Keyrenter yesterday and I have my first showing today. This might just work out after all!!

I'm starting with my first LTR, and I just received a PM contract that looks like it gives them a ton of permissions, but doesn't actually say what they promise to do. Also, is 13 months with a 60-day termination a standard term? It seems like they are ensuring they get locked in for a second lease. And at 100% of the rent amount for new leases, 50% for lease extensions, and 10% monthly, I feel like I should know their criteria for finding a tenant, where they will advertise, that professional photos will be taken, their promised service turnaround, etc. 

Although they don't say what they WILL include, they do state what is NOT including advice about new construction or renovation, which is part of why I want their expertise.

If someone is happy with their PM and willing to share their contract with me, can you DM me?

This is great advice. I was putting the basement last to conserve cash, but putting it first and getting it rented makes so much more sense. THANK YOU!

I am this way as well. I keep asking my property manager for dates, figures, and explanations. She wants me to chill and just let her handle it. It's hard being a control freak and "letting go." Bah! But I hired her to handle what I don't know, so I'll heed her advice. Perhaps you hire a property manager as well for the first year until you get a handle on it.