All Forum Posts by: Diane Tycangco

Hello friends, I am thinking of pulling equity from a paid-off rental and use the money as downpayment on another rental.  The rest of the money will also be from another loan.  In effect, it will be 100% financed by debt.  I have yet to find a property who gives me good cash flow after 2 loans, property management fees, repair expense reserve.  

Is it just because the price of the property is too high?  Am I doing this wrong?

Thanks!

HI Michael, I just spoke to an accountant and he told me I couldn't deduct the prorated interest on my rental from my taxes even if I have proof that I moved the $ from my rental checking to my personal checking because that would mean you are using business/rental money to pay personal expenses.  What do you think?

I noticed that you are a tax accountant.  Are you accepting new clients?

Diane

Hi, I was planning to just look in Redfin, Zillow, etc... To look for properties.  Do I still have to be a member of the Sac/Fresno associations to use my license to get a discount when I buy? 

Thanks

Hello, I refinanced my primary residence and pulled cash out to pay off the rental mortgage but the problem is when TurboTax asked did you use this refinance to buy, build or improve the property on which this mortgage is based, I said no and then they said that interest is not deductible.  And then the tax expert Said if I did a cash out refinance on the paid off rental to get the down payment on another rental, it would ask the same question and that interest won't be deductible either because it wasn't used to build, improve or purchase that first rental. 

Your suggestion is great. I will try that. 

Thanks!

Hello, I am thinking of getting equity out of a paid-for rental and use it as a downpayment for another rental.  Someone told me that when you do not use the loan to buy, improve the property you borrowed money from, you cannot deduct the interest you paid.  Is this true?  What is the solution to this problem?

Of course, the mortgage interest on the 2nd rental is fully deductible as expense, right?

Thank you!

My return is pretty good, maybe 17% cash on cash on CA, 21% in Memphis.  I bought at the right time.

I know it is a state thing, I am worried about the office part of it.  If I hang my license with a broker in the South Bay (while being a showing agent), and I want to buy a property in Sacramento/Fresno, can I still represent myself in Sacramento/Fresno while working under a South Bay realty?

Hello everyone, I am an investor who just got her RE license.  I would like to invest in Sacramento or Fresno, CA but I live in the South Bay which is quite far from those places.  I would also like to work part-time as a showing agent in the South Bay.  In order to get my discount representing myself when I buy a Sac or Fresno property, do I have to hang my license with a broker in Sacramento or Fresno or can I hang my license here in the South Bay (while working part-time as a showing agent) and use the license to get a discount from my Sacramento or Fresno rental purchase?

Thank you!

Hello everyone, I would like to relate my experience with Crestcore Realty/Management in Memphis, TN in order to caution investors looking for an honest reliable property manager in Memphis.  Crestcore was recommended to me by my realtor.  My 1st Memphis property already had a tenant in it and I never had any problems in collection or remittance.  There were no repairs.

So when I bought my 2nd property, which was vacant,  I chose to continue with Crestcore.  The first thing Crestcore did was to rekey the house, which is fine.  They looked at the property and gave me a list of required $8k+ and recommended rehab $2k+ which cost over $10k!  I was taken aghast although I did see that some of the repairs they "required" had merit.  and so even if I was in California far away from Memphis.  I did the rehab myself.

Because I was having trouble with my handyman, plus I had never seen the houses in person since I bought them, I decided to go to Memphis.   I was at the rehab property everyday.  When I returned to CA, lo and behold, Crestcore was charging me for lawncare - 3 visits!  I protested and said that I was there and the lawn was unkempt.  They asked me when I was there and promptly sent me dated pictures "proving" that they did the work while I wasn't there.  I asked my handyman, did you really see anyone doing lawnwork.  He told me he only saw them once - a white guy and an ASian guy and they were only there for 15 minutes.  For the 15 minutes they charged me $58!  

I was so upset that I told them on 10/6/21, I opted out of this lawncare.  

So what did they do?  They charged me for lawncare on 10/1/21.  When I asked them, they said "oh, it's before you opted out so it is a valid charge."  When I finally got fed up and told them to remove my rehab property out of their management, what did they do?

They charged me for lawncare for 10/9/21 - 10/15/21 after I opted out!  Not only that, after I took my rehab property out of their hands, they charged me for lawncare for August before I even owned the property!   They added these August just recently.  So not only are they frauds and cheats, if they really did the lawncare, they can be accused of trespassing!

What is their defense?  They said "oh it's in your contract that you may be charged for lawncare."  But what they did not say, is that they don't inform you before they do it.  They just willy nilly charge you right and left.  Also, I was charged for utility services by the power company but Crestcore tacks on an additional 15% to the bill thereby jacking my bill of $95 to $109!  What service did they provide to merit this?  Nothing but for paying the bill which they gleefully deducted from my rental income.

Needless to say, I terminated the contract today.  I am demanding all the security deposits, rental income to be given back to me ASAP.  Don't know what they are going to do.  Charge even more stuff so that they don't have to return anything to me?

BTW, I see the owner of Crestcore here on Bigger Pockets, recommending his own company to investors looking for a reliable property management company.  Do not believe him!  He does not mention that he is the owner, he just says "Crestcore is a good company" or some such thing.

They are charging too much! 

Hello, can anyone recommend a plumber, electrician and general handyman to repair my Memphis property?

I can send the inspection report and make arrangements for them to inspect the property.

Thank you so much!

Please send me a message so I can respond.