All Forum Posts by: Kabir Gandhi

also been happy with rentalhero for bookkeeping. I own 2 commercial office buildings with a total of 19 units

Quickbooks was too expensive / complicated for me.

Stessa wasn't feature rich enough for me. quick response from customer service.

Only negative is no balance sheet, but this is simple enough to do with excel.  I have one credit card per building, one checking account and one savings account that holds security deposits.  But this would be a nice feature for them to add.

I would also love some suggestions for tenant management as well if anyone has any feedback.

So if I move out, keep it on the market for another 2 months or so and there are still no renters, I could consider it as a capital loss on a rental property?  Or as you stated, would I need to wait a couple of years?

I purchased my primary residence in June of 2017.  I overpaid for the property, this was a rushed purchase after a move to a new city.  Horrible financial decision.  If I sell right now, I will lose a good chunk of money

Instead of selling, I placed my property for rent about 3 months back.  It is listed at fair market rent (in fact, it is listed at a lower rent then an equivalent condo in my building).  So far, no takers...

How long do I have to keep the property on the market before I can deduct my losses from a sale?  Ideally, I would love to rent this out for a year or 2 and reassess the situation then

But, if I decide to list it for sale today and lose money, will that be considered a deductible rental activity?

I have enough passive activity income from other properties to offset any losses from the sale of the property I would incur this year.  How long do I need to keep it on the market as a rental before I can look to sell and still have my losses be deductible?

One other thing to add, the fair market value of the property has not dropped on paper as of yet. I recently had a bank appraisal for HELOC come out to slightly higher than the amount I paid for the home. so it is easy enough for me to show that fair market value at the time I placed the home into service as a rental was actually more than what I paid for it.

So I'm a long time lurker and first time poster.  I'm not sure I'm posting this in the correct forum (didn't know whether to post in commercial or deal analysis).  If I'm in the wrong place, sorry about that and please move to the appropriate location.

I've spent the last few years of my life reading (and listening to) investment audio books including many real estate books in an effort to better manage my money in the future.  Mostly I've just been dabbling in stocks, but now this opportunity came my way.

I came across a deal on a commercial property (office building) and got the numbers a few weeks back.  I'm at a point in my life where I'm able to invest (physician who recently finished fellowship and also just made a pretty good profit on a house I sold).

The asking price for the building was $2,500,000 and the final purchase price came in at $2,300,000.  Part of me feels like I'm starting off with too big of an investment too quickly.  Just wanted some advice on the building and someone else to look at the numbers.

It's a mixed office building.  The 300 and 310 units are both the same tenant - a doctor's office who also has a rehab center (the previous owner installed an elevator for them 1 year ago).

Tenant 105 signed an extension for 3 years to 2020 last month at the same rent terms (3% annual increases from the current rent).

Unit 200 is a dentist (lots of plumbing installed specifically for them).  They have 3 different offices in the area and employ about 15 dentists.

The 100 Unit is the former owner of the building who has his office in the building.  He seemed like he a ton of experience in real estate and still has quite a few other investments in the area.  He also said that he would be willing to stay longer term.  The office itself looked like it was previously used as a doctors office, and could easily be converted back to that with just the addition of a door and one wall that was knocked down in case he decides to leave.

There is an error in the expenses moving forward from Year 2 onward (they're underestimated by about $15,000 each year starting year 2).

After seeing most of the property, the place looks like it's in very well maintained.  I'm in the due diligence period and still have the opportunity to back out.  The parking lot needs to be redone (probably can be put off another year or so) - but estimates for that came in at $30k

The roof was replaced 3 years ago and has a transferable 50 year warranty on it.

Any advice on the numbers would be greatly appreciated.  Any other thoughts, information about specific things I should look for in the property.  I'm reading through due diligence for a commercial real estate investor right now, but it's such a dense book and really scaring me how little I actually know about looking for problems. 

Any ideas on how to pick out someone to do the inspection.  Loan clauses I should look out for?

I'm a complete newbie and it's causing me some sleepless nights with the size of this mortgage.