All Forum Posts by: Jennifer Hillberg

Thank you -- so helpful!!!!

So, with my house that was lived in for 2 years by me (and my family) -- and is now a rental (as of March this year) -- should I depreciate it on my 2007 tax return?

If your rental is near a military base - a great way to rent is to advertise in the housing office on base. You have to jump through a couple of hoops (they usually have someone from base housing come out and inspect your property to insure its not a dump) - but the potential tenants you reach are fabulous. I LOVE military renters - guaranteed income (no lay-offs in the military!), generally respectful people, and if something goes wrong (unpaid rent, damage to property) - you know where they work and their commanding officers usually don't take well to unpaid bills by their troops!

sorry - missed answering a question -- i'm in city limits of Wichita Falls, TX. Despite the price - the neighborhood I purchased in isn't THAT bad -- just sort of lower income.

Thanks very much for the info and advice. This forum is so helpful. I'll keep you updated on the final figures but I'm going to aim at below 50 like suggested. Trick is knowing what to fix and what not to fix.

Hi - so I finally got started here in TX and have a contract on a fixer-upper house. I think its a good deal - but doing the first of everything is so hard for me because I'm not totally sure what I'm doing. I pray I don't make too many mistakes...

Here are the specifics: --

2 houses on one lot - purchase price $31,900
the main house is 3/1, 1200 sqft -- and needs cosmetic repair (paint exterior & interior, carpet, CLEANING, junk removal)
the back house is a 1 bedroom/1 bath/1 car garage -- about 500 sqft. It needs a lot of fix up -- someone was remodeling and stopped halfway.

My plan is to fix up the first one to rentalability (is that a word?), then fix up the 2nd house. Then, in the future, look into subdividing the lot (both houses face seperate streets - they are on a corner lot) and see if I can't make this into 2 houses on 2 lots. ARV of main house is about $65K and ARV of the little house is about $30K. Rents for the area for my house size are between $600-$700 / mo -- $350-$500 for the little house (mine would be on the high side b/c it comes with a garage and will be new on the inside).

We close at the end of October. I think its a good deal. The numbers work anyway.
But now I have to find people to help fix them up. Hopefully the current owner (not living in the property) will let me bring potential contractors by for estimates.

Anyway- just wanted to share! I was tired of watching everyone else do things - I needed to start!

Jennifer

Oh shoot - now you've lost me -- I'm showing my "noviceness" -- what is accelerated depreciation?

okay - thank you very much for your info!

Thanks for the input -- let me clarify. First - we did just move out - so selling by 2010 will qualify for the 2 out of 5 year requirement.

Also - I'm good with landlording, I've been doing it for the past few years. This house is in a great area that is currently experiencing appreciation. The rent covers the mortage plus some (not a lot, but enough). Its a new build house ('05) - so repairs are minimal.

Also - do I HAVE to depreciate the house on the taxes? Isn't that a choice? I'm not sure - I'll consult a tax expert - but I believe I read somewhere that you can choose not to depreciate - thus not having to recapture after selling. I could be way off on that.

so, in the end - my question still stands -- can I sell the two houses in the same year and take the profits tax free? I expect to be moving again in 2010 - that's why we'd sell the current house we live in.

Good Morning all,

I have a question about selling my home. Here's the situation: My husband and I lived in our home for 2 years. We had to move to another city. Instead of selling that home, we're renting it out. I know the tax law says that you must live in your home for 2 of 5 years in order to qualify for the tax free profit (up to $500K for married couples). We are now living in another home - and plan to sell when we move again (we're military - we move a lot). My question is --- can I sell both homes under the free profit rule? Most likely - they'll sell the same year (2010).

thank you