All Forum Posts by: David Howarth

Hey Steve, I really like the homeowner's manual idea.

Send me a copy via email if you can.
[EMAIL REMOVED]

Thanks

I guess I should have been more specific. Im not interested in Flipping or Wholesaling. Im strictly asking about Rentals.

It seems like some many people on here are 100% Business and forget about the Human aspect of Rentals. If you treat people like you care, it will come back to you.

It is important to do all the due diligence (paperwork, documentation, legalities) but at the same time you want people to feel comfortable.

Hi just curious what yall do for Move-In day?

Obviously an inventory checklist. Do you also provide a Welcome Basket with a list of Emergency Numbers and Other Local Information?

If my deductions are greater than the income generated from my property, how does that effect my tax liability?

Does it decrease the total amount of taxes owed? Or does my tax liability stay the same?

Hey Chris, and all the others.

I just joined the "Houston Area REI" Group. I am looking to start a Networking group here in town. Id like to meet maybe once a month, so we can network with other REI's.

What do yall think?

If a property has negative cash flow at the end of the year do you get a deduction on your income taxes that are owed?

Say if you earned $30k from your job and you owe $1000 in income taxes but your property had a negative cash flow of $1000. Would it balance out?

Ive got my first Rental Property up for rent this month.

Ive done alot of research and just wanted to see if these numbers seem realistic to the Pros.

Rentals in the area for a home similar to this one got for $1200-$1350

Monthly Cash Flow Statement

GSI: $1300
Credit Loss: -$26
GOI: $1274

Operating Expenses:
Taxes: $208
Ins: $104
Alarm: $50
Repairs: $25
Misc: $12.50
HOA: $12.50

TOE: $412

NOI: $862
ADS: -$754
CBT: $108

My main concern is the Repairs and Misc expenses. I want to make sure I am allocating enough for that unexpected expense.

I went on the IRS website and read the Publication 527.

I want to know if a Gift Card bought at Home Depot and is given to a tenant for home repairs would that constitute as a repair expense?

A repair is defined as keeping the property in good operating condition and does not add value to the property.

I understand that any advice given to me on this forum does not constitute legal advice.

I have heard that the IRS will only allow you to have a negative Cash Flow for 5 years before they wont allow you to do business.

Does anyone know anything about this?

I called the Insurance Company, they said that it wouldnt be a problem switching from a Home Owner Occupied to a Tenant Occupied Policy.

But Im waiting on the banks reply, if I switch from a homeowner policy what will happen to my loan?