All Forum Posts by: Jack Szalasny

I live in Williamson County.  I attend several different meetings in the local area, there are plenty to go to.   Hope to meet up with you soon.   Jack

Bruce,  If occupied you might have to evict.  Most investors will at first try "Cash For Keys" (CFK) where you give them a short time line (Usually a week or less) to move out and you give them the lowest amount they'll accept.  Usually start at $1K, and advise them if the sheriff/constable evicts, all their personal property is literally put out in the street.   DO NOT PAY THEM UNTIL THEY ARE MOVED OUT.  In the past I've paid for the U-Haul rental truck before hand to help them move and deducted that from the CFK amount.  Change the locks and post NO TRESPASSING signs once they're moved out. You do want a written CFK agreement spelling out the details, particularly the amount and deadline.  Good luck!

Lost out on two Hudson and Marshall auction properties in Williamson county over the fast few months, but I stopped at the highest bid I wanted to get the property for. Meanwhile, got under contract two awesome deals in MLS, of all places. Go figure. One is probate sale, the other an REO.

Kailey,

In answer to your question about tax auctions, they're held the first Tuesday of every month at the Travis County Court House on Quadalupe.  I'd suggest just going to the auction to observe it, it's definitely an eye opener.  As far as seeing the properties, you can drive by them but not enter them.   I've bid and won properties at tax sales, but only for other parties.

In answer to Hubzu, I also bought and made a decent profit on one of their auction properties in South Austin, but their fees and the transaction are stressful.  But what investor transaction isn't? LOL  I've also bought from Hudson and Marshall, a bit less stressful but now it's 15 days to close. 

Jack

Suhaib,

Good questions.  I'm not an accountant, or any type of financial advisor.  With that disclaimer out of the way, I'll tell you that for the past twenty plus years, I've:

1) Depreciated my rental properties, based on a 27.5 year depreciation schedule.

2) Deducted fully the property taxes each year. (See note below)

3) Deducted PMI fully for the rental property

4)  Deducted the mortgage interest fully.

5) Deducted most maintenance/repair costs annually.  Some larger costs had to be spread  out over several years.  (See note below).

6)  You cannot claim the $300 loss above and beyond what you can claim from 1 through 5 above.    However, those losses in 1 through 5 above almost any case will exceed $300.00.

NOTE:  The new tax laws limit property tax deductions to $10,000 annually, but I've been advised that it only applies to your personal residence and not to investment properties.   Likewise, with the new tax laws, it may be easier to claim all the expenses for repairs, regardless of amount to be claimed, in the tax year in which you paid it rather than being spread out over several years.  Since this is a new tax law that only affects income for 2018 and beyond, it's too early to tell all that changed, but overall the tax benefits for investment properties have not been affected negatively.  

Bottom line, find a tax professional who specializes in investment properties.  He or she will point out all the tax benefits of property ownership.

I hope this helps.

Jack