All Forum Posts by: Maurice D.

One thing to think about as you size up properties in the Springs is ADU's. Colorado springs allows Accessory Dwelling Units (even detached), so long as they are "behind" the house and not visible from the road (and meeting offsets).

great way to add value to existing properties if the lot is big, and the right location.  I plan on building one out eventually on my 12K sq ft lot rental.

I think it depends on the numbers, and the numbers depend on location. I have a Condo in VA, a block from the metro and two stops from DCA. never been vacant (well once, due to lousy property management). now there's a whole foods a block way. it has covered parking in an area very crowded even for street parking.

so for me key things to look for are Location, HOA, and HOA fees, and parking situation.

get three more additional quotes from professional contractors.  90k for a handy man is way to much risk, for that chunk of change you want a contract, and you want to be dealing with a bonded/insured company.

@rusellbrazil you are right, the other guy updated today since 05/31 and it went from 4.75 to 4.875.  

@SteveVaughan the Refi reason is a prior 1st mortgage was paid off.  I have a Heloc which is adjusting upwards currently at 5.75 and it's not a balance I can pay off in two years or so.

hi,

I'm currently working with a broker (nobody here on BP) on am investment Condo refi.    it's been in the works for over a month and it's been abundantly clear it's a rental.

the first estimated (unofficial) rate quoted was 4.75%, but now he produced a 5.125 stating the earlier number was based on primary residence.

I am not buying this as a simple mistake.  he is a senior broker, you don't make rate quote mistakes like that do you?

I feel it's a bait and switch to get me hooked into processing with him.

I have an alternate internet lender that offered the same 4.7 and less fees/closing costs, thinking about switching over.

Thoughts? recommendations?

after re-reading this, the camera is listed equipment, subject to the 50% use rule.  Starting in 2018 the new tax cut act removed computers from the listed property classification and can take full advantage of the section 179 bonus deduction EVEN if used less than 50% for the business.  fun!

https://www.directcapital.com/resources/section179...

Well interesting question..

Looks like the law changed recently.  you can deduct the entire cost in 1 year (Section 179 deduction) if you use it 50% or more of the time for the business.

if you only use it say 30% of the time, different rules apply.

https://www.nolo.com/legal-encyclopedia/deducting-...

disclaimer,  consult a CPA, I'm not a CPA.

make sure you get an extra set of eyes on the property, specially if it's your first.  preferably a contractor or an experienced investor to help you size up how much $$$ the "little" repairs may cost.

then use the rental tool here or a spreadsheet and plug in the numbers to make sure it cashflows after deducting expenses, insurance, taxes, property management and capex.   even if you manage it yourself, you need to factor in property management to ensure the deal has enough cashflow.

Well first off congrats!  you are debt free, car payment free, and live for free.  not many 25 year old's have the wisdom to do that! your score should start going up soon, specially once you get a mortgage in place.  how many cards do you have? just one?  you will want 3-4 cards, keep them at zero balance, maybe a few bucks on one card.

I'd recommend a owner occupied 3.5% down purchase, but not before you save a little more for emergencies and maintenance.  you don't want to buy a property with 5K and have the AC break the following month.

In the meantime, get better at sizing the deals.  run the calculator here or your own numbers on a spreadsheet for every property you encounter :) 

Other than that I think you are right on track!  starting young, and investing early on :)