All Forum Posts by: Jon Rusnak

Dan Graney Did your property generate rental income during 2013?

@Dan Graney 

Congratulations on the purchase of your investment property.  

I'd have to look further at the rules for the deductibility of the course, BP book and subscription however to answer the question on whether or not you can deduct a portion of your expenses, it depends on what those expenses are for.  In the example of the inspection I would think you'd be able to deduct the portion relating to the business. You'd have to come up with a reasonable method to carve out the business piece, for example if you bought a duplex and each unit was similar size then 50% may be an appropriate percentage to deduct. But if you bought a four unit building with units of similar size and lived in one of the units then you could argue 75% of the cost is deductible. 

I pulled the information below from the IRS website.  

"Generally, you cannot deduct personal, living, or family expenses.  However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts.  You can deduct the business part."

@Wayne Brooks in my case there isn't a vacant unit however my lender will not generate the loan unless there is proof from one of the current tenants that they will agree to terminate their lease.  My thought process here as this starts the relationship off on the wrong foot and could generate a number of problems down the road.

Right now I'm just brainstorming to determine the best way to proceed with putting an offer on this property. As of right now it seems that I would have to incentivize the current tenants to leave ("cash for keys") or perhaps contact the seller to inquire about different options.  Perhaps seller financing? 

Any thoughts?

@Grace D. I'm currently going through a similar situation.  Did changing to a conventional loan eliminate the 60 day occupancy requirement?  I have been told that so long as the property will be a primary residence the 60 day move in requirement is still applicable, otherwise a commercial loan is necessary.  I'd love to get your thoughts here, as I said I'm going through this currently.

Thanks!

@Jerry Stanford thanks! I took my course exam last week and intend on taking the state exam this week.  Happy new year! 

For those working a full time job that are considering getting their real estate license or perhaps have already done so, do you have any recommendations for finding a sponsoring broker that will "hang your license" if you only intend to use it for your own investment purposes?

@Tyrus Shivers @Jeff B.  Thanks for the quick responses! This is very helpful.

Hi Everyone - I would love your suggestions - 

Long term tenant ("Tenant") of 5 years has a good working relationship with the property manager ("Manager") of the building Tenant resides.  Tenant requested to terminate the lease and perceived that the Manager agreed to the lease termination for a termination fee of 1 months rent, which Tenant paid.  

There was a misunderstanding in the communication in that that termination of the lease was effective "with a new tenant".  Thereby Tenant would remain responsible for the terms of the original lease until a new tenant was found.  Manager and Tenant mutually agree that there was indeed a miscommunication and are looking for a solution where they could meet in the middle.  A new tenant has not yet been found and the terms under the original lease expire in June of 2016.  What would you propose?

@Justin Ericsson My family is in the roofing business primarily focusing on the south suburbs. The company was started by my grandfather over 50 years ago. PM me if interested.

@Chase London I'm working with a lender currently searching for a 3 to 4 unit MFH in the Chicagoland area that was referred to me.  PM me if you'd like me to send along their contact info.