All Forum Posts by: Damon Snyder

Some insurance companies will only quote you the rebuild value of the property ( if the place burns down in fire cost to rebuild) others will allow you to state the value or dollar amount you want the property covered for.  With stated value you get lower rates but of course would get less money if the place completely burned down which is unlikely to happen.  

You purchase home for $100k.  House rebuild value is $155k.  Insurance quote on rebuild value $1,200/yr.  insurance quote for stated value coverage of $100k $900/yr.  

I typically go with stated value and not rebuild value on my properties.  Hope this might help some.  I'm currently with Shelter Insurance.  

Has anyone been advised not to use Wall anchors on foundation walls.  I'm getting estimates to fixed bowed Wall and the companies suggest different methods.  A few different companies suggest not to use Wall anchors.  They mention they have issues over time with leaks as they create new penetration point for water to get in and the pressure of the plates can create cracks on the wall.  Anyone heard or dealt with situations with Wall anchors.  Thanks 

In the process of setting up LLC. Have never claimed home deduction but plan to this year. I was just making sure I wasn't missing something. I could find some other expenses but I have not tried to incur expenses just to write them off. I assume I have the main expenses covered- interest, taxes, insurance, depreciation, and repairs. Please asvise of any other major expense not listed. Thanks again for everyone's time and help. Great website and community.

I have been buying single family homes for rentals the last 7 years.  The question I have is everyone always talks about all the passive losses that come with properties.  I typically experience a loss only the first year or two.  After that my properties are no longer producing tax passive losses.  Is this normal?  I  write off depreciation over 27.5 years, interest on mortgage, county taxes paid, insurance premiums paid, and all expenses for repairs.  

Here a typical property in year 2 or 3 on schedule E of tax return.  

Rents received $7,211

Auto expense ($175), maintenance ($98), insurance ($620), mortgage interest paid to banks ($1670), repairs ($962), taxes ($539), depreciation ($1908).  

Total expenses $5,972.

Passive income $1,239.

Is anything missing.  I guess this is a good problem but want to make sure I'm not missing anything.  Again, I tend to only have a passive loss for a year or two at most before my properties show income.  Is this normal?