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All Forum Posts by: Erin K.

Erin K. has started 24 posts and replied 119 times.

Post: opinions on price for installation of vinyl plank flooring?

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37
$250-300

Post: Cash out refi to buy personal residence - good tax benefits?

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37

@Phillip Weickert - okay, so you mentioned the part that I was missing. I didn't realize that the deductions follow what the cash out money is used for. Makes sense. I was just thinking that *any* interest paid on a mortgage secured by rental properties was deductible on schedule E, but sounds like that is not the case.  

So to expand on that concept - suppose I have a rental property that is worth $200k and I owe $50k on it. I do a cash out refi and pull out $50k to put an addition on my residence.  Now I am paying interest on the $100k mortgage going forward.  My schedule E will only get to claim one half of the mortgage interest, correct?  But if I used the cash out $$ to improve a rental property, 100% will be deductible?  

Thanks for your time and thoughts!

Post: Cash out refi to buy personal residence - good tax benefits?

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37

Thanks for the suggestion - we are below that threshold anyway, but do you understand it to apply to more than just home mortgages? I would have guessed that new limit to not apply to business mortgage deductions. That's a terrible reform for investors if that is the case.  

Post: Cash out refi to buy personal residence - good tax benefits?

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37

We are going to build a personal home. We have a lot of equity spread out over 13 of rental properties, and we don't qualify for a home mortgage to be sold on the secondary market due to so much self-employment income. That leaves portfolio home loans, and the interest rates on them are not great (4.6% with a 3 year ARM). An idea that occurred to me is the possibility of putting these 13 rentals into one bigloan and doing a cash out refi to cover a large part of the cost of our build, with the thought that the interest would then be deductible, which might have some tax benefits. With 5 kids, we don't itemize, because the standard deduction is so high, so mortgage interest doesn't benefit us. Am I missing something or is this possibly a good idea for the interest deduction reason? Also, the mortgage payment after a large cash out re-fi would be the same as we currently pay on the various mortgages we currently have on our rentals, so our cash flow would be unaffected.

Thoughts appreciated!

Post: Tow Away signs on rentals

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37

This is a state-specific question. In Ohio, there are guidelines for the size of the sign, font size, exactly what info the sign must contain, and where the signs are to be located.  

A quick Google search shows FL law has similar requirements:

715.07

a. The notice must be prominently placed at each driveway access or curb cut allowing vehicular access to the property, within 5 feet from the public right-of-way line. If there are no curbs or access barriers, the signs must be posted not less than one sign for each 25 feet of lot frontage.

b. The notice must clearly indicate, in not less than 2-inch high, light-reflective letters on a contrasting background, that unauthorized vehicles will be towed away at the owner’s expense. The words “tow-away zone” must be included on the sign in not less than 4-inch high letters.

c. The notice must also provide the name and current telephone number of the person or firm towing or removing the vehicles or vessels.

d. The sign structure containing the required notices must be permanently installed with the words “tow-away zone” not less than 3 feet and not more than 6 feet above ground level and must be continuously maintained on the property for not less than 24 hours prior to the towing or removal of any vehicles or vessels.

e. The local government may require permitting and inspection of these signs prior to any towing or removal of vehicles or vessels being authorized.

f. A business with 20 or fewer parking spaces satisfies the notice requirements of this subparagraph by prominently displaying a sign stating “Reserved Parking for Customers Only Unauthorized Vehicles or Vessels Will be Towed Away At the Owner’s Expense” in not less than 4-inch high, light-reflective letters on a contrasting background.

g. A property owner towing or removing vessels from real property must post notice, consistent with the requirements in sub-subparagraphs a.-f., which apply to vehicles, that unauthorized vehicles or vessels will be towed away at the owner’s expense.

Post: ISO help valuing apartment building we want to make offer on

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37

Would loooooove thoughts on this if anyone has time.  Thanks!

Post: BEWARE of fraud by erentpayment.com

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37

Sorry - disregard....I didn't see the most recent posts. 

Post: BEWARE of fraud by erentpayment.com

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37

What ever ended up happening with this?

Post: Flooring for rentals

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37

As we replace flooring, we have been going to the click-n-lock vinyl plank. I buy it in bulk when it goes on sale It is durable, waterproof, and easy to install. If something happens to a plank in the middle of the floor (which I have never had happen), you can pull up the quarter round and get to it to replace just that plank instead of the entire floor.  Tenants love it and it looks very sharp.  I have heard more bad than good about the kind that uses adhesive strips to attach together, so I spend a little more and get the click together kind.  No complaints at all about it.  

Also, note that I would avoid laminate like the plague - it is not water resistant and I would never trust tenants with it.  LOL

Good luck!!

Post: ISO help valuing apartment building we want to make offer on

Erin K.Posted
  • Professional
  • Loudonville, OH
  • Posts 125
  • Votes 37

Not quite - asking price is $450k. LOL  I am coming up with about a $410k value using a 9% cap rate.