All Forum Posts by: Derek Johnson

That's what I'm gathering Jon, any clue what my tax rate is?

I am really looking for an answer from a CPA specializing in real estate, or someone who has been through the situation and had assistance from a CPA.

We bought a house for $69,100 and are thinking of listing it for $118,500. We've only been in the house for 4 months so we aren't exempt from the capital gains tax. My first question is how much would that be if we got our asking price? I'm married and make $60k per year. Secondly, if we were to use the profits from the sale to purchase another house is there a way to offset some of the taxes? Not an exchange because we've lived in the house it wasn't intended as a rental. I'm looking locally for a CPA but thought I might get a quick answer here.

We're remodeling our soon to be primary residence, and learning as we go. We bought it as a foreclosure and plan to eventually rent it out, but for now we're moving in May 1st and renting out our current home. I didn't realize all of the work involved, but I am enjoying the challenge. The only thing I'm missing is the time away from my daughter, but I think it is definitely worth it. So far we've fixed all the cracks in the drywall, replaced toilets, sprayed new texture, primed, painted, put in new vinyl flooring in the bathroom, took out old carpeting. Still have a long list ahead of us. I will update as we continue!

Thanks everyone, great suggestions and advice.

I forgot one thing, we are going to cover the water/sewer bill. Can we put in the lease that we'll only pay up to said amount, say $170/quarter so they can't just leave the water on constantly knowing we're paying? Kinda paranoid, I know but just wondering?

We're currently trying to rent out our first property. We are asking $900/mo + utilities, and have two interested roommates. They don't want to lease until May 1, but we are signing it Friday. I have a few questions. Do I ask for all the money now, since I won't be giving them keys until after walk through inspection checklist on May 1? It will be $1800 (900 rent, 750 deposit, 150 pet deposit). With having two roommates for tenants, can I require only one pays me and avoid a partial payment that way? We'd like to deal in either cashiers check (which they likely wouldn't want to) or bank deposits. We are all members of the same credit union so I think they could just give my name to deposit, but I'm also wondering if I could let the bank know not to accept it if it's less than $900? They had good credit (both 760+) and gross over $2,600/mo. My minimum requirement is set at $2,700/mo based on BP recommendations. One of them has no debt and the other has a car payment of 422/mo that he hasn't missed for 2+ years. I personally don't like that, as I think it's a waste if money. But if he's only paying $450 for housing and driving a new car I guess it's ok. No criminal charges. They paid the application fee to smart move within minutes of emailing and I called the supervisor for one and had a great recommendation. I tried the other and they don't divulge the info, gave me a 1-866 number to call which I did and set up an account but couldn't figure it out. I have a months pay stubs from each of them. Would you rent to them? I think it's a solid first set of tenants but I have never been a landlord and would appreciate any insights. They are friends, have been with their girlfriends awhile (2+ years, I facebook snooped) and seemed very well kept when we met, although they are young. Before this they both lived at home. Any feedback would be appreciated!

@Paul Wurster - so far we've removed carpets and a vinyl flooring from the living room and dining room and discovered some nice hardwood beneath. We are going to paint throughout the whole house. Taking out the existing toilets and replacing with new. Removing a part of a wall in the kitchen and adding cabinets, then painting the existing and new ones white, getting new countertops, sink & faucet. We are having our plumber install gas lines to the dryer and stove because we have gas appliances. We have some landscaping and general tidying up to do, but so far no major surprises. The seller actually never rewinterized the property after we had the water tested so that saved us a but of money. We have the power and water transferring on the 31st. Water heater is now on, and haven't found any leaks or anything.

We're going back today to do a few more things, we have a 20 month old daughter but have plenty of people who are willing to help with the work!

Well, we took possession today! Felt awesome because I know it was a good deal. Now we are busy, busy, busy. But it's fun learning new things and working for ourselves instead of someone else. Hopefully one day it can be that way full time.

Mar cia Maynard I would like to see your list, for reference and to build my own from! Can you email them to me? I will pm you my address if that's possible!

Adam Moehn Awesome, keep me posted on how it goes! I heard back from sellers and they said the water can be turned on, but only once. The bank will need it for their appraisal so we're coordinating to do it the same day. I found out the people who lost the bid know my wife and had an inspection done. We're planning to just get the report from them. They just had a baby so we thought we'd get a gift and $25 and pay them for the trouble. They've already found another house. The windows are older, so we're thinking of replacing. They're all painted and look nice but aren't really efficient. I think we'll do ok. Might do some before and after pictures if I remember to! Thanks for the responses, I'm sure I'll have more questions before it's all said and done!

Question- The place has been winterized. When we were there the thermostat was set to 55. It gets cold in Iowa, and pipes can burst. Can we have the water turned on to check it and have it turned back off before closing, or is that something we'd just have to hope for the best for?