All Forum Posts by: George Pan

Hello,

the depreciation expense deduction from my rental property on my tax return is lowering my overall income.

Is that depreciation "added" back to my total income when the bank calculates my debt to income ratio?

Are there any items a bank includes in their debt to income ratio calculations that otherwise show up as deductions in my tax return?

-George

Hello,

I own a 2-family I bought as owner occupied.
Market value around $225k, I owe $179k.
I tried to get a loan for another 2-family as owner occupied. One bank wouldn't even talk to me unless I bought as an investment property, another said they would do the owner occupied.
Credit checked out but they only offered me a $75k loan because my debt to income ratio is too high. The properties I am looking at are around $220k.

They are basing their calculations on last year's tax return. Out of the $60k I made last year they only used $45k after deductions (showed a loss on the rental because of the initial rehab).

I am now renting both the units and with my job, my gross income is $85k.
But the bank is still looking at the $45k!
Can I do anything in this situation? Do I have to wait until next year so I can use 2014's tax return?

Thank you!

For most people, buying real estate (at least in the beginning), means penny-pinching for long periods of time in order to acquire the capital needed for the investment.

It could be months or even years of frugal living to achieve a goal, focusing on "needs" rather than "wants".

But even the most dedicated need a treat every now and again to break the monotony of what I call "the grind", in order to recharge the batteries and stay motivated.

So, do you guys (and gals) treat yourself?
What type of things do you consider a treat?
What about long time investors? Do you ever buy something knowing its a liability (a sports car, a boat, etc)?

Thanks for the replies.

Yes bob, I have had the discussion with them at least 60 days prior to their lease being up.

Hello,

I'd like to not renew the lease on my current tenants.
Based on my lease, if I don't want to renew I must give my tenants 30 days written notice prior to the end of the lease.
Now, how do I make sure they won't turn around and say "Hey, we never got that notice!".
I was thinking of sending it by certified mail.
How do you send written notices to your tenants?
How do you prove that you've sent something?

Thank you

Hey,

thanks for the replies!
I have 2 identical ads in rotation on CL and renew daily.
I don't have my phone number listed. I will add it. I figured people, especially younger people, would rather communicate using the internet.

I actually got a call back last night from one of the showings from last week. About 5 days after the showing. Hopefully it works out.

Some of you mentioned decoration and personalization of my apartment. Since I know I will be moving, I have kept it very minimalistic. I would say it lacks personality and have thought this might hurt me at the showings.

@Bill S.
I just communicate through email before meeting in person so I don't post my number. So I've gotten 8-10 showings plus 2 no-shows.

I had 6-7 in one day last year when I rented the other apartment. Only difference was that I posted it first week of May.

I have 10+ pictures on the showing. Only thing that is not in the apartment right now is a dryer as the one I had before recently died. That is the only thing I tell potential tenants that will be "fixed".

The property is in a residential neighborhood. Not student ghetto. It usually attracts college grad students and young professionals.

My tenants have been model tenants.
Place looks good, no trash, noise, etc.
And yes, these potential tenants have been in the same socioeconomic group (grad students or just out of college, middle-middle class).

The one rented last year was empty when I was showing it, yeah.
You said there is a difference. What's the difference?

No, I haven't used that.
I will definitely try it now.
Does anyone advertise with physical media any more (newspaper, flyers, etc)?

Hello,

I purchased a duplex (each has 3brs/1ba) last April in a city with 5+ colleges, a university, 2 hospitals, and state offices.

I decided to rent one and live in one for the first year. I advertised the place on Craigslist's last May and had tenants within a week. They recently told me they want to renew their lease for the 2nd year.

Now I want to move and rent the one I've been living in. I've been trying to rent it for more than a month now (for the same price as the other one) to no avail. I've had around 8-10 showings. Most say that it is a very nice place, but I get no call backs.

The rent cycle here starts in June because of all the colleges.
I am getting nervous now but don't want to lower the rent price. What I am asking for it is not unreasonable, and it rented out very fast last year.

I feel like I should put more effort into renting it than simply putting it on Craigslist. What are good ways to advertise?
What are some things I could do to attract more potential renters (ie open house)?
Thank you!