All Forum Posts by: Josh Pass

@Josh Pass

Can you see if the properties are worth more now than what you paid for them on the open market?

I just find it iffy that the turnkey companies would be willing to "help" out just like that. You may want to reach out to an agent to see if you can get more.

If you put in any money for repairs  - that should drastically increase the cost of the property.

If you put in significant repairs into the property that were capitalized - you may actually benefit from a tax loss if you do sell it for the purchase price.

No, I didn’t put any money into repairs after purchase.  I bought for $50k each or so with all rehab done.  It’s the Midwest so not really much appreciation anyways.

This is a highly rated turn key provider so I think they just want to cut their loses with me and I cut my loses with them (just don’t see eye to eye on some things).

@Josh Pass , 

You might actually have a loss if you did some improvement on the property and with all the selling expense that you might incur. Also when you bought the property, some of the settlement cost would have been added to the basis, so your basis should have increased from your purchase price. 

So when you sell the property, your basis will be ( simplified ) 

purchase price (100k)

+Settlement cost( +5k)

+ improvement (  0 since its turn key) 

- depreciation (-5k)

= adjusted basis ( 100k) 

SAle 100k - adjusted basis 100k = no gain. 

But, the amount of depreciation you took during your rental ownership, that will be taxed at 25%.

So, if you took depreciation expense of 5k, you will owe 1.25K on taxes. 

You dont get taxed on the sale price. You get taxed on the gain. If you sell for an exact same amount, you might not have any tax, but need to know your numbers to tell you.  Only tax you might pay is depreciation recapture tax mentioned above. 

The 100k sale proceeds you get is free to pay a debt back and reinvest, no tax implication. 

Good luck. 

@Josh Pass Try Steve Bighaus with Sierra Pacific Mortgage

Small  banks will be able to do this kind of small loan amount. 

@Josh Pass Are the Properties in your personal or business name?

I know this is 3 months old but I'd love to hear how this turned out.  I'm in my 30th year as a landlord and I know my response to the suggestion of a lawsuit, moving/boarding expenses would be "good luck with that" followed by "read your lease and get back to me with any questions".  Beyond that I just wouldn't take the bait of having the conversation further...until they don't pay their rent and then I'd immediately put them on notice that they are evicted for lease violation and that if they do not move within whatever time is stipulated in your lease you are prepared to do an unlawful detainer...which is a matter of record and will make it difficult for them to lease elsewhere

Josh Pass judging from how they are reacting over something as small As a rat, my advice is to get out while you can. Find someone else as a tenant. You don't want any more problems in the future. Property management will deal with the headache, but your pockets will have to deal with the loss if they decide not to pay next month because the doorknob doesn't turn the right way.