All Forum Posts by: Michael L.

 These questions are good, but overall still too basic for a CPA as an experienced real estate investor can answer too.

Michael L, you could probably ask questions like what's the IRS Sec # regarding this and that and what's the exception and what are the caveats/catch :) The good one usually always remember the "caveats" portion.

It's always best to have a tax professional specialized in your biggest income generator. 

If you're really tied into REI then I'd find someone with specialty there

But for what it's worth....I'm real estate specailzied and have worked exclusively with investors for almost 10 years now and the term "Step down depreciation" means nothing to me. 

You generally pull permits before beginning any work, including demo. The sooner you can pull them the better, because some cities are backed up and can take weeks to approve them. I wouldn't recommend pulling them before you close though, since like @Carlton B. said the deal could go south and there's no getting your plan review and permit fees back. Some cities won't even allow you to pull permits on a property that isn't yours (unless you're a contractor/architect working for the property owner).

Whether or not your rehab requires a permit depends on the city. Check your local building department's website to find a list of what does and doesn't require permits. If it's a larger job (e.g. new construction, full-guts, additions, etc.) they'll probably require plans and everything will be covered under a single permit which will require multiple inspections at various stages.

When doing home owner electrical plumbing permitted self work is possible but usually require that you reside in the property for minn 1 year versus renting or selling.  

 ONILY pull permits if needed.  But of course, BEFORE the work starts. Please go to your local RE meeting. Connect with those doing deals, learn then apply what you learn. You should not even be thinking about this. You have much to much to learn

All the best 

 Ditto on the zero action until the ink is dry.  Current project was supposed to close today but we've extend 2 weeks due to seller probate issue.  If probate turns into 2-6 month process the deal is dead.  No not put out any money until you have the keys.  Better to delay a few days than to have to unwind payments.

@Michael L. Typically, only the current Owner, or their licensed contractor, can pull a permit. Generally, if you are not going to be an owner occupant, you Must have a licensed contractor apply for the permits.

I never do anything until we close things can south quick. I just had a closing postponed the day of.