All Forum Posts by: Joe Sampson

I'm going to be getting my money out of my first BRRR this week & am hoping to have the next under contract this afternoon.

My question is how does one calculate the "purchase price" for the BRRR and if we have any insight on how to roll this into my current years tax situation and potential benefits in the coming tax year (current year depreciation and moving forward). I had some big ticket items like appliances, furnace, electrical improvements, etc and not totally sure if these fall into the "purchase price" for depreciation or if they would be on my tax year and would take a loss on the property (I'll have spent more on improvements that I will take in in rents)

Quick rounded info below that may be useful.  The property was purchased is 2019 (most improvements in 2020) & will be rented by the end of 2020 (with some income to show).

Purchase Price:40k

Back taxes:40k

Improvements (with receipts) : 20k

Holding Costs: Electrical, current year taxes, titles, closing, insurance : 5K

Any insight would be greatly appreciated!

We have a option to purchase a nice commercial building that we currently occupy one of the units.  We have been long term tenants and have a very good relationship with the current owner.  

We discussed a land contract // seller financing on an off market deal at a nice discount from fair market value.  

If anyone has any insight or resources on how to proceed or structure these conversations and the deal moving forward that would be much appreciated.  I don't see any books specific to the topic at my local library.

He wants us to have the building, we want the building & the price appears make the deal a bit of a no brainer.

How do interest rates usually work with regard to current market rates?  Term lengths?  How does each side safeguard itself for the life of the contract?

THANK YOU!

I have an up/down duplex I am currently renovating and have some choices to make.  It's on a very high traffic street, has a wrap around driveway and currently a zoned duplex in a mostly residential area.

The upstairs unit is a nice 2 bed 1 bath apartment that functions well and should be easily rented.  The lower level is a bit more tricky...in the past it has been a gift / flower shop and most recently its been an apartment.  

I have removed a staircase, brought down some walls and it is a really nice open space.  It's 900 sq feet with a wide open 600 sq ft front room with 10' ceilings and then a walk through to a kitchen & bathroom.  The lower level also has access to a nice unfinished 900 sq foot basement with a roughed in bathroom and laundry hookups...but no egress windows.  If your following me you're seeing that the main level / basement unit doesn't have a defined bedroom at the moment.

I'm Looking for some insight and thoughts on the pros and cons of residential vs commercial for this space.  The concept of adding 1 or 2 bedrooms on the main level or basement or leaving it as a wide open choose your own adventure type space.

If I wanted to go commercial with the space it would involve a conditional use permit, limited signage and would have to be a relatively low traffic business to meet the criteria by the city and limited parking.

Thanks!

I have a duplex that I'm weighing putting on the market in the coming months.  When I purchased the property it was through an IRS auction & I am wondering if anyone has any insight on if the back taxes that I paid on the "sellers" behalf can be counted against the future capital gains on the sale of the property.

I have never lived in the property, so there are no implications of being owner occupied. I don't have a note on the property & it is primed for a BRRR, but I just don't have the bandwidth at the moment to execute (& keep my wife happy!)

Thank you for the insight, notes and support.

Joe

How many people have been showing up for the meetups?  Hoping to make it Wednesday, asked a couple friends also.

Hey All-

I just purchased a property from an IRS auction this morning.  The purchase price was $1000 under my top bid, the City Taxes & senior encumbrances are hefty & due in 180 days after the holding period.  I walked through the property (VIA an open door) leading up to the sale, its been empty for about 7 months and looks like the tenants left all of their belongings behind.

It is mixed use with some bed rooms, kitchens, office space, bathrooms, solid garage space etc.  It will be interesting to see how it all shakes out and I'm excited (much more than my wife) about it all.  It's close to home and will serve as some additional storage for some of my trailers, etc in the meantime until I can actually get in and start the work.

Would love any insight from others about how their processes have played out, to do's/not to do's with IRS auctions and I will keep you all posted as the adventure continues!

Adios!

Greetings-

We have recently moved back to Western Wisconsin after living in Boulder, CO for 6 years. There is no REIA in the area here and I know there are many investors throughout the area with 3 universities in the city & a solid local economy. I have 2 duplexes and am renovating the house my wife and I will be moving into early 2018. My family has 40 years of property management experience and I have a number of friends and contacts who have various interests and activity levels in the space.

Starting a REIA is something that I'm interested in undertaking and have heard it referenced many times in the podcast and also across the forums. I would love any insight that anyone has about how to get one started, a solid place to host, how to spread the word and also how to get a solid crew of active investors and not just people slogging for funding first deals.

Much appreciated & happy holidays.

Greetings-

We have recently moved back to Western Wisconsin after living in Boulder, CO for 6 years. There is no REIA in the area here and I know there are many investors throughout the area with 3 universities in the city & a solid local economy. I have 2 duplexes and am renovating the house my wife and I will be moving into early 2018. My family has 40 years of property management experience and I have a number of friends and contacts who have various interests and activity levels in the space.

Starting a REIA is something that I'm interested in undertaking and have heard it referenced many times in the podcast and also across the forums. I would love any insight that anyone has about how to get one started, a solid place to host, how to spread the word and also how to get a solid crew of active investors and not just people slogging for funding first deals.

Much appreciated & happy holidays.

Hey all-

Long time listener, but new poster in the forums.

I will be selling my Boulder, CO condo this fall and moving out of state.  It's a hot market and looking for tips on how to execute this sale without using an agent.  It will likely sell to an out of state investor based on my conversations recently with co-workers etc.

Thanks for starting the conversation!