All Forum Posts by: Varinder Kumar

@Mark Huang they might give you quotes but as always they would want to come out and see the property first. You can also use http://www.homewyse.com/ I think it might help you out. 👍

@Shaun Vembutty Thanks! that helps i will also follow up with city tomorrow as well

@Account Closed 

this is what i found as far as zoning?? for that city.

I am looking to flip this home how ever the lot size is 3400 sqft. The home that sits there right now is 775 sqft, very small! It is a 2 bed 1 bath. My plan is to add 500 sqft to it and a 500 sqft garage which amounts to 1775 sqft total structurally. So the question is can I put this much square footage on a lot this size? I will check with the cities building division as well how ever just wanted to get the thoughts of my fellow BP'ers first. Thanks guys i look forward to your responses.

Well it seems you guys really like the property.  With everything fine and dandy and the fact that your going to make sure the property is vacant before y'all move in it slaves the biggest issue. Good luck and enjoy your new place! Feel free to reach out to me should you need more assistance. 👍

In Fresno California and New Orleans,LA they have lien forgiveness programs. Below is what it looks like in the city of Fresno,  CA. You should look into your city to see if they have such programs.  Hope this helps. 

Code Lien Waiver Program

How it Works

Before purchasing a property, the purchaser may request a code lien payoff summary. The

City will issue a summary of liens due at closing. These -are divided into two categories—

abatement liens and fines or citations. Abatement liens are the actual cost of abatement

such as trash or weed removal. Fines or citations are the fees associated with the code

enforcement action and the penalties assessed to the property owner for noncompliance.

The purchaser will request an agreement from the City with complete scope of work

and anticipated investment. At a minimum the work must remediate all code violations.

The purchaser may request up to 90 days to complete the work necessary.

The City Manager may enter into an agreement to waive up to $100,000 in fines or

citations. The purchaser must pay all abatement liens at closing. At the end of the 90

days, the City will determine if the investment has been made and the code violations

removed. At that time, the agreement will be completed and the code case closed.

City Waives Fees and Citations

Investors seeking to identify property for rehabilitation can sometimes

run into roadblocks such as unpaid code enforcement liens.

Beginning in early 2014, the City of Fresno began offering a Code Lien waiver

program to encourage reinvestment in established neighborhoods.

An investor seeking to purchase a home or residential unit

with code enforcement liens can participate.

@mike H. Is it a SFR or MF? Talk to your CA as well. But you can look at anything you include in the rental price and use that as a deduction.

Hope this helps:

1. Interest

Interest is often a landlord’s single biggest deductible expense. Some examples of interest that landlords can deduct include mortgage interest payments on loans used to acquire or improve rental property and interest on credit cards for goods or services used in a rental activity.

2. Depreciation

The actual cost of a house, apartment building, or other rental property is not fully deductible in the year in which you pay for it. Instead, landlords get back the cost of real estate through depreciation. This involves deducting a portion of the cost of the property over several years.

3. Repairs

The cost of repairs to rental property (provided the repairs are ordinary, necessary and reasonable in amount) are fully deductible in the year in which they are incurred. Good examples of deductible repairs include repainting, fixing gutters or floors, fixing leaks, plastering and replacing broken windows.

4. Local Travel

Landlords are entitled to a tax deduction whenever they drive anywhere for their rental activity. For example, when you drive to your rental building to deal with a tenant complaint or go to the hardware store to purchase a part for a repair, you can deduct your travel expenses.

If you drive a car or truck for your rental property, you have two options for deducting your vehicle expenses. You can: deduct your actual expenses (gasoline, upkeep, repairs), or use the standard mileage rate (55.5 cents per mile for 2012).

To qualify for the standard mileage rate, you must use the standard mileage method the first year you use a car for your business activity. Moreover, you can’t use the standard mileage rate if you have claimed accelerated depreciation deductions in prior years, or have taken a Section 179 deduction for the vehicle.

5. Long Distance Travel

If you travel overnight for your rental activity, you can deduct your airfare, hotel bills, meals and other expenses.
Be aware that IRS auditors closely scrutinize deductions for overnight travel—and many taxpayers get caught claiming these deductions without proper records to back them up. To stay within the law (and avoid unwanted attention from the IRS), you need to properly document your long distance travel expenses.

6. Home Office

Provided they meet certain minimal requirements, landlords may deduct their home office expenses from their taxable income. This deduction applies not only to space devoted to office work, but also to a workshop or any other home workspace you use for your rental business. This is true whether you own your home or apartment or are a renter. Make sure you discuss with you account the correct amount to deduct. This is another deduction that IRS auditors closely scrutinize.

7. Employees & Independent Contractors

Whenever you hire anyone to perform services for your rental activity, you can deduct their wages as a rental business expense. This is true whether the worker is an employee (for example, a resident manager) or an independent contractor (for example, a repair person).

8. Casualty & Theft Losses

If your rental property is damaged or destroyed from a sudden event like a fire or flood, you may be able to obtain a tax deduction for all or part of your loss. These types of losses are called casualty losses. You usually won’t be able to deduct the entire cost of property damaged or destroyed by a casualty. How much you may deduct depends on how much of your property was destroyed and whether the loss was covered by insurance.

9. Insurance

You can deduct the premiums you pay for almost any insurance for your rental activity. This includes fire, theft, and flood insurance for rental property, as well as landlord liability insurance.

10. Legal & Professional Services

Finally, you can deduct fees that you pay to attorneys, accountants, property management companies, real estate investment advisors and other professionals. You can deduct these fees as operating expenses as long as the fees are paid for work related to your rental activity.

Also check out the link below it might give some answers

https://www.biggerpockets.com/renewsblog/2015/05/20/tax-benefits-real-estate-investing-rental-properties/

I would ask other owners of similar type properties and see who they use. You may be able to set something up long term with someone and get a discount. You can also use thumbtack.com it's an online service which provides handyman, contractors etc for all sorts of jobs.  IV used it in the past and it worked out for me. Side note:the stuff you have listed to do you can probably DIY it and save money. What doesn't go in their pocket goes in yours. Good luck! 

Honestly it seems like a headache to purchase this property for you. Is there something huge to gain by purchasing and putting up with all this,  if not then walk away. It's not worth your time and efforts. There are other places for sale. Good luck!