All Forum Posts by: Kent Lord

@Ned Carey

Gotcha so I just need to make sure my CPA allocates the expenses related to the property apart from my overall income?

@Cameron Tope

The thing is I’m self employed and my income as a contractor is under the same entity I bought the property with. This was because all my credit cards, employees, and equipment were used under this investment project and other income producing jobs.

Also some of the $150k was leveraged into an $80k line of credit and some other CC’s. So I don’t have that as liquidity.

But yes thank you.

@Ashish Acharya

Interesting, then the expenses would be considered capitol improvements and need to be itemized under that one property?

I'll be as clear and quick as I can:

I recently finished renovating a 5 plex and SF house in NE, then subdivided the lot to create two different properties. I then refinanced them with a local bank, success, kind of.

A. Buy: Purchased $100k owner carry for 1 year. I put $10k down to owner. 

B. Renovate: Just over $150k. 

C. Refinanced: 80% LTV, new loan $235k left in deal $15k

D. Repeat: As I am preparing my tax returns with my CPA here's what I am running into. My books now show my expenses -$10k and -$150k to equal -$160k. **The new loan of $235k is not income, so my books show a negative. Stopping my ability to finance another deal. Renovations hurt me and the new loan is not helping. 

Has anyone ran into this issue before? If so any insight?

- I have done 5+ flips but this is my first BRRR. I will be discussing this in a meeting with my CPA next week.

Love it! I want to get some investments down there. I currently have 5 doors in western NE. 

This is darn good advice right here. I like it. Thank you. I am looking at doing some investments down there. 

@Crisselda Clark

What’s the plan? Refi? Hold or sell?

@Mark Caudill

Did you sell it yet?

Any concerns about the neighborhood?

@Ngozi Onyesoh

That’s where I’m currently looking to invest. I’ve had my eye in Pueblo for a few years. I own a 6 plex in a market similar.

I’d love to talk more about it even help you guys out budgeting the renovations or giving at least what I know.

@Chris Dimoff

I’m in Denver and know of quite a few decent deals in the Arvada Wheat Ridge and Lakewood areas. Let me know if your interested. Mostly 4-5 cap some 6%.