All Forum Posts by: Juan Alcorta

Thank you @Michael Plaks and @Bill B.! Your answers plus this article helped to add a lot of clarity.

Hi @Michael, thanks for your response!

A few follow up questions:

County taxes and HOA - deductible, assuming that the property is already placed in service, i.e. either has a tenant or is ready for one.

In this case, the home was closed early November and a lease will start on Dec 1st. What would be the difference if there is no lease yet. Could that be deducted and be carried forward as a loss?

Appraisal and underwriting fee - "loan fees" which is amortized (evenly deducted, month-by-month) over the life of the loan

This is in the case that they were added to the principal correct? In my case I paid for them with extra money at closing, which I believe that would be added to the basis of the property? 

Thanks again!

Juan

Hi everyone, 

I recently closed on my first rental property and I'm curious about how to track closing costs correctly. Do they apply as "miscellaneous" expense (which I can deduct when I file the taxes of the current year) or add them to the cost basis (which will reduce your taxable capital gain when you sell the house).

Here is a concrete example with some made up numbers from closing day:

- Purchase Price: $300,000

- County taxes from 11/01/2023 to 01/01/2024: $850

- HOA Prorations: $30

- Appraisal Fee: $400

- Prepaid Interest from 11/03/23 to 12/01/23: $1,100

- 3 months of homeowners insurance (for escrow account): $150

- 4 months of property taxes (for escrow account): $2000

- Underwriting Fee: $600

- Wire Fee: $15

- TITLE & ESCROW CHARGES: ...

- Government Charges: ...

- 1 year of Homeowners insurance:..

- Home warranty: ..

How to track all of these? Except for everything that goes to the escrow account (and will be used later to pay taxes/insurance), does the rest go into cost basis? Or some of these count as expenses for the year 2023?

Thanks in advance!

Hi Cassie, the problem is that most platforms don’t support it. For example, Zillow Rental Manager won’t allow you to specify an address of a home that is currently for sale. 

Hello everyone, I'm under contract for a rental property and I got authorization from the seller/realtor to advertise the property for rent before the sale has closed, given that otherwise we would be getting too close to the Thanksgiving holiday. 

While looking at Zillow Rental Manager and other syndication services, it seems like they require the full address, but not sure that makes sense since the same address is still showing for sale (pending). Are there options to market the property without the full address and just specifying the area? I'm going to start with Craiglist but curious how others have done it. 

Thanks in advance!

 Hey Ranjit, thanks for your answer. Sure let's connect.

Hi everyone,

I'm considering doing a flip in the Rocklin/Roseville, CA area and I'm looking for a reliable GC who can help with it. I'd appreciate any leads.

Thanks in advance!

Juan A.