All Forum Posts by: Justin Hicks

Thanks Joel! Yes, tenants pay utilities so i'd use 50%,,, thanks for input

Possibly can get a quadplex and duplex for $220k,, gross revenues a month are $2,686,, Property taxes are around $3,200 a year, insurance at $2,000 a year,,, possibly would get property managed at 8%,,, no deferred maintenance,,, lets say a 20 year note at 5% on 25% down,,, deal or no deal?

I'm not practicing this mr. holdman, that was just my understanding. Definitely don't want to tiptoe with the IRS. Thanks for the advice and info!

Well there's obvious thinking behind saving on SE taxes. I'll use round numbers, and not exact tax brackets for an example. Let's say you flip a house for a profit of 100k. If you put it on your your sch. d as capital gains, and you are in 30% tax bracket, you are taxed 30k. If you put on sch. c as ordinary income, you are taxed 30K plus SE tax of 15.3% minus your SE deduction. So an additional 7,500 or so in tax if you are considered SE.

I've actually researched and think you can get away with putting flips on sch. d if you are real estate investor and not real estate professional/dealer. Obviously it's a very fine line between the two.

I was under impression that unless you flipped full-time, you count profit/loss of flips as capital gains. Saves on SE taxes this way. Obviously if this is sole business, you report on sch c and record inventory, etc.

Anybody ever bid on a note off of Auction.com? What kind of due diligence and research needs to be done? Need to get a lawyer involved?

There is an attractive MF property coming up in about a month and would love to know what kind of info I need to find.

Thanks for the response @Jim Farrell . Yes, I've done the property search and it's owned by a Corp in CA, and I'm pretty sure I've narrowed it down to the individual I need to talk to. Thanks for the advice on communication between the owner and myself.

Not really sure how I need to go about this process. There is an apartment complex where I live (SE TN) that has always been appealing to me. I looked up the property tax records and the complex was bought for $2.8 million in 2006, and seems to be owned by an individual in California. The past couple of years the parking lot seems to be getting emptier and emptier, and the complex as a whole just seems to be in bad shape (I live close, so I drive by occasionally).

I would love to contact the owner, and let him/her/they know that I'm interested in the property, but my offer price would be nowhere near $2.8 million (I don't think it would be worth that if the property was running great). How should I go about this process without offending the owner?

Working on a flip, and am curious,,, Does anybody add in their mileage into the cost of the property?

Long time reader, first time poster. Anyways, I have ventured in single family home rentals, but never multi-family. There are 4 duplexes (all by each other, all 2 bed/1 bath) that could potentially be bought. They are all empty, and the owner is willing to sell (don't think he has been involved with them past couple of years). Potentially, I think each unit (8 units) could rent for $500, but let's use $400 to be conservative. There is probably anywhere between $30,000 and $50,000 needed in rehab, total. I'm not sure on property taxes, but property taxes are normally low in TN. I'm having a hard time on figuring a reasonable offer price (they are NOT listed in real estate, my group approached the owner). Looking at tax records, it looks as though they were purchased by owner for $210,000 in 1995. Property is in a good, but not great part of town.

I guess my question is: What would be a good offer price?

BTW, I love the info here on BP, hopeful to start posting more.