All Forum Posts by: Jon Haney

Hi E. J., thanks for the help. Maybe doing a HELOC would be the best way to go so I can keep the property (which really has done well for me over the past four years, currently has a paying tenant, etc.). Thanks for reminder that there are other options available!

Hi Tim, thanks for replying and helping me think things through. 

My current cash flow on the property is around $400/month, so I would need to find a duplex that could increase that cash flow. As the property is currently situated in a class C neighborhood in Gary, I'm not how much more appreciation will occur over the next period—I know that many home prices in the area have been falling there recently. 

My long term goal is more focused on appreciation and wealth building, not necessarily cash flow (although that's been nice in the short term). 

I'm thinking about using the equity to fund a downpayment on a duplex in the Detroit area or upgrade to a nicer area of Gary.

Hi everyone,

Would love your thoughts on a potential 1031 exchange. In 2021 I purchased a property in Gary, IN, for $58k on a conventional mortgage. Now it seems the property could be worth $90k-$100k, while the remaining mortgage is just at $43k—leaving me anywhere from $40-50k of equity in the property. 

I'm just starting out in my real estate career and own only one other property, so recapturing this equity via a 1031 exchange—with an eye to financing two more properties or a duplex—sounds really attractive. What would be the pros and cons of doing a 1031 exchange with this property right now?

Thanks so much for your thoughts, Jon

Hi Colleen, thanks for the help. I think you’re correct about the utility company and the tenants, and I also think the PM probably can’t do anything else.

One other question that I have is whether I can take action against the PM. They completely forgot to report the burst pipes until several weeks after the incidental, and along the way they haven’t been very helpful, forgetting to email me back, not taking the initiative, etc.

Not really sure if anything can be done—just looking to avoid the same chaos in the future.

Hi all, just wondering if I could get a bit more feedback on this situation.

If you remember, a pipe burst in my rental property back in January. After the property manager filed a claim, the insurance company said it needed proof that the heating was turned on at the time of the flooding. Since then, the property manager hasn't been able to produce anything to show that the heating was on—though they repeatedly say it was. Instead, they just keep saying things like "we've never seen anything like this in 10 years of business." Sigh. 

Recently the PM tried contacting the utility company to access the tenant's former bills, but the utility company turned them away, saying no one but the tenant could have access. 

I've personally tried to contact the former tenants and ask for the receipt of the utility bill, but their phone numbers have changed in the meanwhile and I've had no luck. 

Now the PM is not really responding to my messages, just saying they don't know what to do. 

What might be another option for me here? Does it make sense to talk to an attorney? Perhaps a bigger question is whether or not the PM is really being as helpful as they could be—it doesn't seem like they've really tried all the possible solutions.  

Any and all feedback or suggestions would be so welcome, thanks!

Thank you all for the help! Super helpful info and stuff to keep in mind. 

Hi everyone,

In February a pipe burst in a rental property we own in Indiana. The flooding damage cost about $10,000 to repair, and now we've been going back and forth via our property manager to settle the claim with the insurance company. (We live abroad so can't be in person to negotiate the process.) 

Here's the problem. The insurance company needs proof that the heating was turned on when the pipe burst, or else we are out the $10k. The property manager has said repeatedly that there is no way for them to prove this,  but I haven't heard from them exactly why that is. The tenants have since moved on and new tenants are in the house. 

What are your immediate thoughts about this? Is it possible for me to go straight to a utilities company, for instance, and ask for verification for this sort of thing?

Thanks, 

Jon

Thanks everyone for the very helpful advice! I've certainly learned a lot. 

Yes, the house is currently valued at $69,000, which means these repairs only kept it from decreasing in value.

I appreciate all the help,

Jon

Hi all, 

Recently my SF rental property had some pipes freeze and burst, causing a considerable amount of water damage to the house. After moving the tenant out, the property manager repaired the damage, and in the process also replaced the furnace and pipes and put up new drywall in damaged areas. In total, the cost for all repairs came to $11,000. 

I'm still quite new to real estate, but I'm wondering whether repairs like this cause the value of the home to increase? The house appraised at $69,000 last year. I ask because I'm interested in doing a cash-out refi in the future.

Thanks so much, Jon

Hi, quick question about selling a rental property for less than it's worth and tax implications.

I purchased a rental property on 9/1/2022 for $40k, paid $4k in closing costs, and over the course of 2023 paid around $4000 for upkeep and security on the property. 

I was planning to renovate and rent out, but squatters unfortunately became a nightmare and I decided to offload the property. I sold it on 9/22/2023 for $29k. 

Here's my question: Do I qualify for a tax deduction considering the substantial loss on the property? I've read online that this applies only for rental properties that are in possession for at least one year—I'm guessing I qualify?

Thanks for any and all help,

Jon