All Forum Posts by: Jerron Contratto

Hello everybody. I hoping for some solid advice here as im torn on what to do.

A long story short, I sent out my paperwork with instructions to my CPA who filed my taxes.  For one reason or another she wrote off more then what was instructed and did not claim all rents received from my two properties. Why, I don't know. Possibly that she misread my documents, maybe there was a mixup, or maybe she thought she was helping me out with a bigger refund.

As im sure you all know this can be a problem with getting a future mortgage as it is going to drastically changed my DTI. Never mind the possibility of an audit. ( Not worried as much about an audit and she didn't go overboard so I don't see any red flags)

I wasn't happy when I received my copy but figured that I could easily fix this and amend them to what they are suppose to be and correct everything. My problem is that my Banker told me that even now if I fix them now that they would not be able to use my amended taxes because it will show more income then what my original tax return stated. ( He works for quicken loans.)

Am I screwed now? Are all lenders this way? Do I have to basically write this year off due to lack of income and poor rental history? What would you do?

Obviously I will be finding another CPA soon and inquire on his opinion on the matter. Hopefully all hope is not lost. ( Im open to suggestions on CPA's too. Im located in the Detroit area right now)

Thanks

Hi Marion. I would personally stay away From Roseville MI. I grew up in Roseville for 18 years and just moved back about 2 months ago (With my parents until we buy our primary home out West some). My parents still live there. Don't go by what the charts are telling you. From a personal experience its been on a steady decline for about 10 years. School districts are horrible, crime is on the up, local business are going under and are not kept up, and residents are getting worse and worse.  I have seen the prices and quality of the city decline and its showing no indication of getting better.

Some home prices are increase over the last year but this was just due to the correction from the crash. Most people are still underwater buy quit a bit.

80k in Roseville is an awful lot as well. I would look at certain parts are Warren, St. Clair Shores, and Harrison Twp.  I know a lot of people don't play the appreciation game but I always make that a big factor when before I purchase a home. If the area doesn't show promise then I will pass. (By appreciation I want at least national average, Im not talking about making a killing off of it by speculation buying. But I don't look to loose money from it. I always want a desirable location)

In the three city's I mentioned you can expect rents from 1000-1200 for an 85k property with quality tenants.

Hi, James. If you're going to invest in Miami you're going to have a tough time. I just moved from Miami Beach about 2 months ago so I'm familiar with the area. I was there for 6 years. I was trying to jump in the market but it just made not sense to me. This is what I found...

With a Buy and Hold you will be upside down from anywhere of 20-40%. Maint cost are crazy high, taxes are high, and insurance is very very high. **Stay away from class D neighborhoods down there.

You could do a flip or two. However there are many CASH investors all fighting for the same slice of the pie. Most homes sell over asking price and wont even appraise out for loan.

Really the only option that I saw was a speculation buy. Many people have made a lot of money in Miami buying under speculation, but to me that's just way too risky.

Miami isn't talked about much im assuming because if you're going to invest there are many other areas that are much better for investing into.

Owning a home in Miami does have an appeal. I will say that.

Robert, what do you think about in Kendal or Doral. I know its a commute but its not bad if your only using the beach on the weekends and such. Some of my good friends lived out there. They didn't mind it so much.

Good luck