All Forum Posts by: Daniel Loane

Thanks everyone, very grateful for the community and the great info you shared with me! @Sean Graham @Account Closed

Hi everyone,

I purchased my first rental property in June 2023, and it took until December to prepare it for tenants. I posted the listing on December 12, and my first tenant moved in on December 26th.

As I’m filing my (extended) 2023 taxes, I’d appreciate any advice on what expenses I can deduct and what I should capitalize, especially since the property was mostly vacant. For context, (1) the property was in poor condition when I acquired it, and (2) I’m a passive real estate investor.

Here are my expenses:

• - Travel (~$2,000) and meals during travel ($500)—I understand only 50% of meal costs are deductible.
• - Gardening maintenance (just to prevent the grass from getting too high, not an improvement).
• - In-year tax consultation ($300).
• - Commission to my buyer’s agent ($300).
• - Insurance premium ($1,000).
• - Insurance deductible following a claim ($1,000).

I believe the property won’t begin to depreciate until it’s in service, which seems to align with how TurboTax is set up. If that’s not the case, any clarification would be appreciated!

Lastly, if anyone has recommendations for affordable CPAs in Cleveland or Ohio who could assist me, I would be grateful.

Thank you so much!

Hi all!

I am living in Los Angeles city (near Long Beach) and have a 3-car garage (660 sqft) with a bathroom permitted in the 60s. Bought the structure when it was essentially converted to living space already and would like to convert the garage into an ADU and build a second story on top (total ~1200 sqft).

I am looking for a trustworthy and affordable architect to help with the design & permits. Any recommendations? 

Thanks!

Hi Biggerpockets Community!

I recently bought a primary residence in San Pedro, Los Angeles. There is a huge 3-car garage on the property and I was thinking about converting it to an ADU. I later learned that it may be possible to split the lot through an SB-9 lot split which may optimize the value creation.

I would love to connect with community members who are planning / in the process / or have finished an SB-9 lot split! I'd like to plan a lot of the build myself but also looking for experienced contractors (architects and other trades) who can help with it. Any recommendations and advice, resources would be greatly appreciated!

Thanks!

Thanks @Paw Nouri and @Jake Baker! Appreciate your helpful advice.

Hi Biggerpockets community!

I bought a SFH in Parma, OH. I'd like to use it as STR but would like to rent it out to two parties because the units would be easy to separate and each party would have their own bathroom without further ado.

Should I be able to do that? It's similar to rent-by-the room although technically each unit would come with their own privacy. If it's possible, would I need to submit 1 or 2 short-term rental registrations?

Appreciate any advice! Thanks!

Hi Biggerpockets community!

I have bought a SFH in a B neighborhood in Parma Ohio and plan to use it as a long-term rental. The property is rather old. I am not planning major updates at this point and hope to rent it out for around 1300$. The inspector pointed out multiple items but I am stuck to take a decision on two things specifically:

(1) The side entrance is missing flashing over the awning. I got quoted 250$ from my handyman. Is that a fair price and does it seem worth the investment?

(2) The back deck and staircase going up to the second floor isn't properly attached to the house. Repairs & material are quoted as 550$ to (a) use proper sized lag bolts to secure the back deck to the ledger board and (b) install 2x4s to sides of railing to reduce gaps. Is that a fair price and does it seem worth the investment?

Very grateful for all the advice from the community!

Thanks!

Thank yoU @Wayne Brooks.

I don’t mean lender related fees. I meant escrow and title charges. Do you have advice on whether these items below should be covered? 

Hi BiggerPockets Community!

I have a purchase agreement with below terms. My understanding is that Seller pays closing costs as per this contract, including Owner's title insurance, settlement fee to title company and any other Title and Escrow/Settlement Charges. The escrow company says that each party (buyer and seller) pay their own part. 
Any help would be appreciated!

Thanks!

Hi Biggerpockets Community!

I recently rented out my first rental in Cleveland. Had put a lot of effort into reading about how to vet the tenant and implemented the strategies I came across but it didn't seem to help. I'll need to evict them as a result of missing rent payments and no signal/response to any contact I am trying to make.

Does anyone have a recommendation for a good attorney/PM/expert to take the lead on the eviction for me and can get out the tenant quickly (to the extent the process allows for it) and at an affordable price?

I appreciate any recommendations!

Thanks!