All Forum Posts by: CJ Witmer

Thanks everyone for the replies.  Seems like I got my answer.

I did some searching and didn't find much so I wanted to pose the question here.  As the subject states, we bought a duplex and after it was all said and done, we had roughly $4,000 in unpaid rent and eviction fees that we were not paid.  I had reached out to my CPA and she said that, from her research, because it wasn't money we "paid", it was money we "didn't receive", that we can not count those losses on our taxes.

Does this sound right?  i specifically chose the CPA we use because our lawyer, who does rental properties recommended them, but I also feel like we're given the "newbie" CPAs because we're a very small business.  In the last two years, I've been handed back and forth to three different people and that is another issue I'm not excited about, but perhaps a different thread.  However, my main question is about her answer regarding our inability to NOT claim those losses.

Looking for feedback.  This is Pennsylvania.

Thanks,

@Benjamin Seibert - Keep us posted on how it goes.  I currently have a duplex in Waynesboro and 2 in Chambersburg.  Decent returns, but it seems things are slowing down a bit for the winter.  I guess contractors and folks like us are snapping them up to rehab over winter.

Let me know if I can help in any way.

Hi Kyle,

How did this all turn out for you?  I live in Chambersburg, but worked in Hershey for a few years, so I know the area, but not really the real estate market.  Hope it went well!

@Joe Miller - Who did you end up using?  We have our 3 duplexes insured with Dean Martin @ Starr Insurance in Chambersburg.  Happy so far.

Good for you man.  Keep us posted on how it goes.  New jobs always seem to need at least 8 months to a year to get fully comfortable.

Hi Sean,

How did this turn out for you? Did you guys move on this?

Let me preface with the fact I am certainly no expert on any of this.

Based on advice from our lawyer and hearing some horror stories on BP, I setup an LLC and we've always been required to do 20%, but that doesn't necessarily mean you need to bring all 20%. We had some private money help from family, but I'm not sure if that's an option for you. For our first one, it was a friend selling it and he gave us an amazing deal and I realize very few people could luck into the deal we got. He sold it to us for $59k, we did about $8k in repairs and a year later it appraised for $97k. Mortgage is $374 and rents are $1350, so we took that equity and bought our second duplex. Wash, rinse, repeat with the 2nd one (BRRRR) and we're about to settle on our 3rd in about 2 weeks.

You could try a HELOC from some of the existing properties you and your partner already have. I would try this, but we're right around 79% in our home, so I don't know that our HELOC would be for much.

Are you or your partner willing to house-hack and live in the property? If so, you could do a 203k loan. A 203k is what I used on our personal home and let me tell you, it was a MISERABLE experience, but at the time, it was our only option as I had just started a new job and had to do a 90-day "trial" as a contractor. I was fortunate, again, to have my father co-sign on most everything, but Bank of America got so granular, I had to explain a $300 deposit in my account for selling a couch on Craigslist along with every SINGLE transaction over about 3 month period. I remember spending hours looking into where a $17 deposit came from!! Yea, it was a nightmare, BUT, it got us into the house we have now and we now have around $45k in equity, so in the long run, it was a good plan.

Just throwing out ideas and perhaps you guys have already looked at these options. Best of luck.

CJ

Hi Robert, I used Kristoffer Heck with Heck Construction for a new door install and was very happy with price and workmanship. I believe he’s from around Orrstown, but my unit was in Waynesboro and I know he does other work in Chambersburg. Very nice guy to deal with in my experience.

Hi Dana, No input on Hanover, but we’re about to settle on our 2nd duplex in Chambersburg. Glad to see someone else local!

Kate Hall I’ve sent a few private messages, are you getting them? We have just gotten some available equity and would love to chat with you on opportunities you have available. Also, I never got an inventory list from you.