All Forum Posts by: James Mason

Thank you all so much for the recommendations!!

Hi all,

I am looking for an accountant who has some specialty in real estate because I want to make sure my wife and I take advantage of all the tax benefits of our real estate investment. I have a pretty straightforward tax situation--my wife and I own just one rental property and sold a primary residence this past year. We live in the Richmond VA area, although I am sure taxes can be done from any state in the US. Important factors are:

1. Some expertise in real estate (maximizing depreciation for tax benefits etc.)

2. Good at deciding whether married couples should file jointly or separately

3. Reasonable rates

Thanks in advance for any recommendations!

James

@Frank Chin Thank you for that tip! So basically what you are saying is that if I were to refinance now knowing that it will be rented soon, that would essentially be fraudulent because it would need to be refinanced as an investment property?

@Eric James and @Kimberly Carver -- I just got off the phone with Geico, and you were both correct! The landlord policy was about $100 less--that was a relief. I read several seemingly credible articles which stated that landlord insurance would be 20-30% higher. I am glad it wasn't. Thankfully it will be cash flowing at $500 a month with the 3.9% rate.

@Lawrence Potts Thanks for the tips. My next step is to find a good CPA who is knowledgeable about real estate. Also, I need to learn more about running numbers, and I know that boils down to practice :-)

@Gerard Charles Good question--I don't know how the capital gains would be handled if we hold on to it as a rental for 10 years or so. I assumed since we had lived there for 3 years, the tax benefits would carry over to when we sell the property--but maybe not?

Hey @Karee Martin! 

When I bought the property three years ago, I didn't know what the BRRRR method was, and I am still very much a newbie. However, the way that things have played out over the last few years--it definitely resembles a BRRRR. Basically, I bought it wanting to live there and bring it back to its former glory (it was built in 1910). I was only thinking about it in terms of #1. living there and #2. I knew the house was in a location that would appreciate well.

So I did Buy, Rehab, and now it will be Rented. I may take some time before the Refinance part, because I need some more knowledge and advice there. I definitely intend to Repeat because I've got the real estate bug now :-) 

@Frank Chin Thank you so much for responding--I appreciate the tips! 

First posting!

I am about to convert my primary residence into a rental property (I had lived there for three years, so no issues there). I have been reading articles all day, and I am having trouble figuring out the best way to proceed. Here's what I think I have learned to be true: 

*I must call my homeowners insurance and convert my policy to a landlord policy. Not doing so would be very stupid and dangerous. However, landlord insurance tends to be a bit higher, potentially cutting into the cash flow.

*Since I have occupied the house for more than 2 years, the conventional mortgage loan that is in place is fine as is.

*There may be some significant tax benefits for me. I should find a CPA with expertise in rental properties.

Are all of these things correct?

If so, the real question I have is how should I proceed?

My mind is swirling with the possibilities. Perhaps I should refinance the home (my current interest rate is at 3.9%)...perhaps this would mitigate cash flow losses due to higher "landlord" insurance. I plan to hold on to this property for at least 5-10 years.

What would the order of events be and does that matter? Change insurance first, then look at possible re-fi, etc.? Is it too early to consider creating an LLC?

One thing that I think a lot of folks might relate to is this question: Is this something I should handle myself, or should I consult with an expert? In other words, should I just call my insurance and change it to a landlord policy? Should I shop rates? If I wanted help in this situation, who would I hire or consult to optimize the process? 

Big thanks in advance for any thoughts you have to share.