All Forum Posts by: Joseph Heimann

Any thoughts on what I should do here?

I appreciate the replies. 

The total bill was almost $6k. The windows themselves are just under $1k with the rest of the materials and labor are lumped together. I could probably ask them to separate out what the windows cost for installation but my guess is it is definitely less than $2.5k.

I don't see why I would want to include the cost of the rot repair in the capitalized improvement since it should not be one. It just happened to be on the same invoice as the window because it was done as one job.

Does it matter that these windows are a small % of the total windows? It is a 4 unit house and these windows make up less than 25% on one of the units. So that's less than 6.25% on the entire house. 

That along with the fact that the windows were required to be replaced due to the repair of the rotten wood makes taking the bill as an improvement a bit hard to swallow. 

Looking for advice on a specific tax situation.

In 2019 I had to repair some rot in the structure of one of my rentals. They ended up needing to remove and replace 2 of the larger windows. 

Finishing up my taxes now and looking for thoughts on how this should be set up. I was thinking of putting the cost of the windows as a depreciable asset and the rest of the bill on repair expenses. I have seen advice online where it has been argued for the whole bill to be repairs or the whole bill to be capitalized. 

Since I received the bill late in the year, the payment is also split between 2019 and 2020. From what (I think) I know about repair expenses is that it matters when you pay for it not when it is complete. So this would mean I deduct the amount I paid in 2019? 

Thanks in advance. 

This is great stuff, thank you for the info! We will have to discuss more what we want to get out of our arrangement. It may be that we can get by without an LLC for the first few small properties.

A friend and I have been talking about investing together and have been bouncing around the idea of using an LLC. I currently live in Wisconsin and he works and lives in California. We would be investing in Wisconsin and surrounding states with mostly buy and hold rental properties. We are thinking 50/50 ownership.

Any thoughts on how to structure this? Use an LLC or something else? Any tax or financing concerns?

Thanks for the help!

Hey, I wanted to jump in on this with a slightly different scenario. 

A friend and I are planning to invest together. He will bring the cash, and good W2 job and I will bring everything else (50/50 split for cash flow and ownership). However, we want to do a BRRRR style so we will be needing to refinance.

Any thoughts or suggestions on how this should be structured? 

Thanks for your time and advice!

Thanks for all the great advice. I'll be talking to lenders early next week and was wondering if you had any tips for me? What to say/not to say?

Also, do you recommend making an appointment to go in and talk or just talk on the phone? 

I'm located in the Eau Claire area but I'm also looking for rentals in Chippewa Falls and La Crosse. 

Hello All,

I'm a relatively new investor, owning one single family in Texas that I am currently renting out. After travelling Asia for 6 months, I am now back home in Wisconsin and looking to get more property. I have a few problems regarding financing.

 I just started working a "part-time" job (50hrs/wk) and this doesn't exactly make it easy to get financing for a house. Banks don't seem to like the part-time aspect of the job and I have only been working there a short time as well. This is the main hurdle as my credit score is around 800 and I can get enough for a downpayment.

Now, I would like to BRRRR. If we assume that I can find private money to get the first property, how would I go about doing the "Refinance" portion? I'm assuming I would run into the same problems that I am currently seeing in financing. Any suggestions on how to address this problem?

I currently have a few properties I'm looking at, and trying to get the private money needed. I just don't want to be stuck in it with no way of getting the money out.

Thank you for the help!