All Forum Posts by: Frank M.

I am unaware of a 'state' law. It's more about the bank giving you the mortgage. They may have a clause forbidding you from buying and quickly moving out to the next house. I recall a year was what the mortgage stipulated. Depending on the mortgage, 2 years might be fine.

Hello Mark, I am also in MA, and pretty new to BP. A great resource, with a lot of information and people willing to help.

Why does A require calling the other owner? It's a shared driveway. Better to repair than risk a tenant tripping, Better still, to have the conversation, I agree with D.

Any hint on cost? I don't see a pricelist on the site.

EZtexting - looking at this. Not cheap. No "mailchimp" equivalent. At least with MC, one can build to a certain level, see results, then succeed into the need for paid service. I like that model.

(I've not used EZtexting yet, FYI.)

Exactly - when one asks about a long term return, that's how the math should be done. $1000 today becomes $2000 in 7.2 years at 10%. Any time value of money calculation is done this way. If only for an apples to apples comparison to other investments.

Not exactly.

I'm not commenting on the expectations, only the math. 12K to 50K is 10%/yr for 15 years. (divide 50 by 12, then take the 15th root, it's 9.98%)

The effect of the CoC should be added on top of this, a spreadsheet with IRR function will help.

I see you are in California so I won't ask about plowing. Is any lawn maintenance required? Little things like this can add up fast. And as others stated, if you add management, it's in the red.

I learned the hard way, that if the numbers are too close, there's no scalability. $50/mo positive flow will not pay you for your time if a series of small things need addressing.

The $120/mo for repairs is good unless a few things die in a short time span. Fridge, oven, dishwasher, heating, AC all have finite lives.

It can work, just understand the downside. And start by offering $100k.

you asked about snow - yes, it's a deduction. Others cautioned about the repairs prior to actually being rented. I agree.

I think it's fair to say that once rented, every cent going to the property then falls into expense or improvement. Pure services are always expensed. Snow, lawn care, etc are covered of course. Note - if your place is so high end you have a landscaper install a backyard pond or waterfall, that's an improvement. I mean normal annual service, not such projects.

It's time for a new accountant.

For a rental property, repairs are all an expense, deductible that year. Things like a new appliance, furnace, etc are depreciated. The instructions for schedule E should help clarify what's 'repair' and what's an 'upgrade'. Most items are one or the other with little grey area.