All Forum Posts by: Heather Moreland

@Taylor Brugna which parts of the closing costs/acquisition costs can I deduct immediately, and which parts need to be added to my depreciable base? Do you know of a handy guide for that?

My husband and I purchased a triplex this summer with an FHA loan and a low-ball offer. It was an estate trying to cash out the money and they were willing to let it go for what we felt was a good deal. We live in one of the units and our portion of the mortgage/insurance/property tax (after the rent from the other two units) is $200/mo. We doubled our living space (we rented an apartment for our first year of marriage) at a third of the cost. We acquired the tenants in both units and it has been a breeze, even though the acquired tenants are paying a little under market. Since they have each been there for several years, it makes sense to keep the tenants at the lower rate instead of trying to find new people and turn over the units.

I'm really glad we decided to buy a multi-family place first. It felt like a no-brainer to us and we have no regrets. The key thing, I think, is to find a place you're planning on keeping indefinitely. Make sure the price is right and that the cashflows work, even if you're living in one of the units. For example, even though right now we have to pay $200/mo. toward the mortgage/insurance/taxes, it's a heck of a lot cheaper than if we were to pay $800/mo. to pay someone else's mortgage, and when we eventually move out and rent the third unit, we expect to clear at least $500/mo. in rents.

Just my two cents. I hope it was at least a little helpful. :)

Hi everybody,

My husband and I purchased our first property this summer--a triplex--and we live in one of the units. I've been gathering tax documents and I'm a recent accounting grad, so my plan is to assemble as many things as possible and find someone to look over my work before I submit it to the IRS. I want to learn as much as possible about the process along the way so I can be more self-sufficient in the future. Would you be willing to look over my work and teach me? Obviously I expect to pay for the help and counsel, though hopefully less than if I simply dropped off a box of unorganized paperwork...

As a related and maybe simpler note, how do you all figure out depreciable base and total depreciation for the year if I live in 1/3 of the property and can only depreciate 2/3? Our intention is to live in this place for a few years and then rent out all three units. 

Thanks for your time!

Heather

We bought a triplex two months ago and moved into one of the units. Since we've bought the house, the long-term tenants in the other two units have paid their rents on time and have been generally pleasant. Good news, according to plan.

What wasn't in the plan was one tenant complaining about hearing some kind of rodent in the walls. We called the exterminator and had them set traps, and the tenant confirmed that she doesn't hear them anymore. Good deal.

Then the exterminator company sent in a inspector this afternoon, who went up into the attic to look around--he showed me pictures of it and it's a disaster. There are nests and dark spots everywhere (ugh). He recommended having the edges of the insulation replaced with pest-repellent insulation...to the tune of $4500. Ouch.

As I mentioned above, we just purchased the building two months ago and had a full home inspection done---the inspector included the attic space and said it was in acceptable condition on all counts with no additional comments. Can we make some kind of claim against the home inspector? Is there some kind of warranty for that? This is our first home purchase and we really need advice.

Thanks in advance!

@cain collison

Welcome! I'm also in Chattanooga and trying to soak in as much information as possible. What got you started on this journey to invest in real estate? For me, it has been the Rich Dad, Poor Dad series (and from watching my own dad's mixed-bag experiences with real estate). The idea of having passive income and financial freedom sounds fantastic and I want to get there, slow and steady. 

Hello all,

I just discovered this site today and I'm looking for a place to learn about the basics (and later, the complexities) of investing in real estate. My dad has been investing for many years and unfortunately, he made a lot of mistakes and lost several houses along the way. I've grown up having dozens of great conversations with my dad about what NOT to do in real estate, and now I'm ready to pursue an education in what I SHOULD be doing. I'm 8 credit hours away from my undergraduate degree in business (with a concentration in accounting) and I would love to build on my business classes with some hands-on experience---but first, I want to learn and hear the counsel of those who have gone before me, so I can hopefully learn from your mistakes too!

Thanks for reading this, and I look forward to hearing from you soon. 

Heather