All Forum Posts by: Harold Arnold

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $79,900

Homepath property. Used a 203K-like loan for rehab.

How did you find this deal and how did you negotiate it?

Homepath

How did you finance this deal?

203K-like loan

How did you add value to the deal?

Rehab

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Maureen Scanlin Realtors

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $79,900

Homepath property. Used a 203K-like loan for rehab.

How did you find this deal and how did you negotiate it?

Homepath

How did you finance this deal?

203K-like loan

How did you add value to the deal?

Rehab

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Maureen Scanlin Realtors

Great story.  I did a similar process (minus getting a real estate license) with a Triplex.

We are working on our 2016 taxes. In December 2016, we entered an agreement of sale for a multi-family (Triplex). We did an FHA loan as we intend to owner occupy one unit and rent the other two units. We had a structural engineer come out to take a look at a couple of issues. The main structural issue that the engineer was looking at was in the unit that we intend to owner occupy. A minor issue was in one of the units that we intend to rent.

We put our business-related expenses through our business for tax purposes. My wife feels that we should only be able to count two-thirds of the inspector's expense as business related because two-thirds of the units are to be rented. The other one-third should be a personal expense since we intend to owner occupy the third unit. I'm, on the other hand, wondering if we can treat the entire inspector's expense as a business expense since we were not literally owner occupied at any point in 2016--and hadn't even signed an FHA loan agreement yet.

We have not yet physically moved into the 3rd unit as rehab work is still being done. We're working to get in there asap. But, we currently still live in another location. Could someone familiar with taxes give me your opinion as to whether the expense should be two-thirds or the full amount (or something else) as a business expense? Hope this is clear.

Newbie in need of some timely advice. I just purchased a Triplex in Bristol Borough (two units in main house; one detached unit in rear). Main house is 100 years old. Inherited tenant in 2BR/1BA first floor unit whose inherited lease goes until Sept 2017. She's lived there 11 years and wants to stay. But, from my valuation she is well under market rent (paying $750 for unit and access to large basement area vs. what I believe is ~$900 market rent). Question #1: Would you honor her existing lease through September? If so, do I still have her fill out my own lease at her existing rent or just leave her old lease in place until it expires? 

Second question, Inspection revealed knob and tube wiring on second floor unit. I've had paneling taken down to start rehab. Unit mostly needs drywall plus I want to install stackable W/D in unit which will require a plumbing run and rewiring all electrical to get rid of knob and tube. Would you go through Borough permitting process for all of this work or just have contractor get started? Contractor is ready to start but I'm feeling uncomfortable proceeding without a permit. What would you do?

Thank you in advance for your wisdom.