All Forum Posts by: John Irvin

@Allan Smith

I live about an hour away, but work out of the Peoria area (except working from home due to Covid-19).

CAT still has a fairly large presence in Peoria. Two factories, some offices, suppliers. Also, Rivian is a new electric car manufacturer that is setting up in the old Mitsubishi factory in Normal.

Some bright spots, but not likely to see appreciation that you see in other markets.

@Timothy Harbison

I'm in Clinton, IL. About an hour away. Just bout my first BRRR property. Would love to connect, and definitely interested in learning more about the local RE groups.

@Joe Splitrock

Thanks!

Bought my first rental. Has some foundation repair needed. Looking at $10-$15k if I hire it out. Can I deduct this as a repair expense or will I have to depreciate it? Looking to keep as a rental. Also, I'm planning to BRRR this property. Will I be able to depreciate the assessed value of the house (minus land) after I refinance?

@Louis Jeffries

Thanks for the reply! Great points!

I’m planning to get some input from my local RE agents. The challenge with small markets like this is getting good comps.

My other thought is that adding a bedroom and possibly a 1/2 bath will make this a much easier sale down the road. I’m trying to think of the exit strategy, but definitely don’t want to put money in that I can’t get back down the road. And like you said, ideally pull out as much of my cash on the refi as possible.

@Forrest Williams

Thanks for the reply! I’m in a pretty small town down state. So, I‘ll check on that locally. Might not be as tightly regulated here.

I’ll try to put some stuff together and touch base with you.

I'm getting ready to renovate my first BRRR property.

It’s currently laid out kind of funky. It’s 1100 sq ft. It’s a 2 bedroom 1 bath, with the bathroom only accessible through one of the bedrooms.

I think I can get a 3rd bedroom. Maybe a half bath. It will get me another $200 a month in my market.

I’m looking for advice on a floor plan layout software to play around with layout optimization.

I would also like to connect with some who can do some layout work remotely. Best case would be to find someone locally who could work with me on layout. Unfortunately I live in a pretty small town (7500 people) in central Illinois. I don’t really know who to contact. Not even sure what to expect to pay for this kind of service.

Any suggestions or advice would be greatly appreciated!

@Cory S.

Thanks for the reply. I’m just starting to figure out how to navigate the BP forums.

Didn’t see replies on several posts.

Still working on renovating my first rental purchase. Purchased for $25k cash. Planning on about $15k renovation costs. 2 bedroom that should rent for around $700/month.

Looking at a second next week. It’s a 1 bed, 1 bath with detached garage. $25K asking price. Around $7k Reno. Should rent for $550.

Hoping to get around 10 properties over the next 5 years, to get to around $2500-$3000 monthly cash flow.

One of my biggest hold backs from early retirement is healthcare/insurance costs.

I tested positive for COVID a few weeks ago. Thankfully had a mild case.

I was reading that if you test positive, you qualify to take up to $100k out of your 401k without the 10% penalty. If you pay back within 3 years you can avoid paying those taxes or get those taxes back in credits (I’m not clear on how that works out yet)

My thought is to use the money to jump start my invest by using a BRRR strategy and be able to pay back the $100k by year 3.

I know this can be risky depending on what happens in the markets.

Anybody else considered doing this?

@William Curry

I believe a person can gift up to $14,000 to a child or grandchild without paying capital gains. Not sure about a nephew or niece.

Best to consult a tax advisor IMO.