All Forum Posts by: Wai Chan

Thank your for your response. Yes, it is a mix of SFR and triplex

For item 2, how do you code it for 179 expense in TT? I don't see such option.

Regarding to the definition of tangible property, the following website said new tax law includes HVAC, roof, etc. Of course I am not sure how accurate the statement is.

https://www.mlrpc.com/articles/new-tax-law-affects-rental-real-estate-owners/

I have read about two possible legal ways to write off some of the rental income:

1. Take a partial dispositions of asset for a rental property and use that loss to write off the income in 1040
   https://www.thebalance.com/partial-dispositions-3192873
2. The new tax law said we can use the section 179 to deduct the entire cost of the eligible property for the rental property such as roof, HVAC instead of depreciating it over 27.5 years.

However, I don't know how to implement this in turbo tax. For item 1, I understand how to do the math to find the "loss" from the disposition but I am not sure where I can put it in turbo tax. The closet is to put it as sale of business property but I am not sure. For item 2, I saw that there is a section 179 in the asset/depreciation section in rental property income. However, I have tried a few combinations of answers but I still cannot get the number to appear under the section 179 column.

Anyone here has experience on these two items using turbo tax? Thanks.

@Chris Mason Thank you for the response. I am actually one of the deed of trust holder. Does it mean the seller will not be able to close the escrow if he cannot satisfy all the payoff demand? In terms of getting paid? Does everyone who hold deed of trust have the same priority of getting paid for the loan? Does it matter if my payoff demand is higher or lower? It is not a foreclosure sale. It is a normal transaction. 

There are multiple deed of trusts recorded on a CA property that is now under escrow. If the contract price cannot cover all the payoff demand, can the seller still close the escrow? What would happen in this kind of situation? Can you give me some suggestion?

Looking for general contractor/handyman to finish a rental make ready job in City Heights. Work include whole house painting (wall, door, trim, cabinet and some shelf), new vinyl plank flooring, and add a shower in bathroom. Let me know if you have any recommendation! Thanks.

Looking for contractors for make ready service in City Heights. Please let me know if you have any good recommendation. Thank you.

This is the exact dilemma that I have right now. I have purchased 8 SFR from Aug 2014 to June 2015. Cash flow started off pretty good actually. Most of the properties are located in Northern Collin County (Plano, Allen, McKinney, 160K-200K) and two are located in Cedar Hill (120K - 150K). While properties appreciate pretty good over the past few years, cash flow keeps dropping pretty dramatically. Property tax and insurance are just getting more and more expensive and rent is either constant or increase in ~2-3% rate. I am using 15 years fixed loan so cash flow is even lower (enough to cover all the mortgage, cost for sure). I think I have two choices, either getting rent to payoff the properties slowly and speculate the appreciation, sell now and invest elsewhere with better cash flow. Tough choices...

I found the water bill is getting more and more expensive....For example one of the triplex I am paying about US 500 every two months ( 8 occupants, no landscape). Another triplex I am paying US 750 (16 occupants, no landscape) ... Does it sound about right?

All long time tenants and rent is below market rate...How do you guys charge tenants on water? Do you charge them based on occupants per units? I am thinking to put a small water meter to each unit water line so I can know how much they use every month and charge them accordingly. Any thought about it?

Rest assured. The "sketchy" area is SD is nothing compared with the war zone you will find in Mid-west .....
Maybe you will hear a few gun shot events every few months and some robberies here and there in the "sketchy" San Diego. Again the "sketchy" SD is really just a more affordable area for working class people to live. Yes, you will see homeless people wandering on the street, you will see trash in the alley, some random people will trespass your yard if it is not locked ... these are all the things you should expect to see if you pay this low price. However, there are not a lot of dramas you can see in those area. People living in those "sketchy" area are just normal people who cannot afford to live in University Heights/North Park/Normal Heights .... 

@Dan H.

Thank you for the recommendation. I have called him and got a sample report. I would agree that he did point out a lot of stuff that should be irrelevant to investor. It's a good thing actually as I want to find an inspector to write down EVERYTHING he see. I will hire him to try it out.