All Forum Posts by: Chinmay J.

 Trusted wrong people..  Sometimes gutsiest can be stupidest to right? 

 You should work with a title company, and they will ensure that all the back taxes get paid when they hand you the paperwork. The back taxes should come from the seller's proceeds.  If the seller is not netting anything  from the sale of the property, he will have to bring the difference to the table. 

Don't do the deal outside of the title company, and make sure you get title insurance.  Good luck. 

To answer your other question......

Yes, I want all the tax breaks  I can legally get.. I also want to pay zero taxes on all forms of income..(active, passive, dividends, interest everything...)  I also want to date J-Lo... 

I see what you are saying..... 

Not an attorney or CPA, and I think you should consult one, but depending on what kind of upgrades were made, for you to get tax relief it would have to have  significantly increased the assessed value of the property. Did the owner put in an additional room and made 2 Bed 1 Bath into 3 bed 1.5 bath... Well in that case you might have a case if you are able to prove that it was done to house someone who was disabled and in dire need, because adding 1 bed and ½ bath can significantly increase your tax bill. 

Now, however, if all you added was a ramp for him to be able to use his wheelchair - that hardly is an improvement that is going to increase the property value or tax bill. 

Bear in mind that this is a primary source of revenue for the counties, and they will do anything and everything to get themselves paid.. In fact in some jurisdictions investors pay 2% of property taxes while homeowners only pay 1%. Indiana (Marion County, where Indianapolis is located) and Ohio (Cuyahoga county where Cleveland etc are located) come to mind.. 

So for you to get a tax relief, can be difficult, but doesn't hurt to ask a qualified CPA / Real Estate Attorney, but odds don't look too much in your favor.. 

Never heard of that. I'd be really surprised if any jurisdiction has a provision like that. What makes you think you qualify for a tax break for having a disabled tenant.  From public policy point of view, if anything they qualify for rental assistance, because they can't get up and go to work like all of us normal people do. LOL.. And if qualified, they do get rental assistance in form of Sec 8 vouchers.  You can charge market rate to Sec 8 tenants just like you do for normal tenants. So it's not like you are getting robbed or anything..  In fact, in most cases Housing Authorities will pay a little more than market rates.  Again, why you need a tax break?  LOL

 Good luck in all future endeavors.. 

 I am a frequent poster on the board, and most of my income has ranged from $5,000-$20,000, as I don't do it full time.. 90% of my income comes from my IT Job, and I plan to keep it that way. LOL.. I invest in real estate (to create passive income); don't run a real estate business (huge difference)

So don't think that just because  you see someone doing it a certain way, that's the only way to do things. It's whatever suits you, and whatever your dreams and goals are. 

 Power Of Attorney is fine for legal things, but for day to day management is what you need good boots on ground.  PM is the way to go, but that PM better be vetted PM.  A bad PM can ruin your investment. 

 You can scroll up and read.. I am not writing it up again..   Not pulling out any cash. 

 No matter what vehicle you choose, and not matter how much money you have...

Your strategy is as good as your boots on the ground, and when you are 28 days away, you definitely need someone reliable on the ground even if you are investing in your backyard.  If I were in your shoes, I would definitely buy and hold. Renting provides stable cash flow, and it's great way to generate passive income..  Again, you need someone reliable you can trust.