All Forum Posts by: Kerns Churchill

One of my rental homes in Phoenix will soon be vacant. I have it listed on Zillow and have had tons of people reach out to me about arbitraging my home. I was wondering if anyone has any experience renting to someone who is going to use the home for Airbnb? I'm not thrilled on the idea, but could be persuaded for the right premium. Any input is appreciated.

Hi Everyone,

I will be closing on a new SFR in Tempe, AZ soon, but am concerned about the occupancy laws. Tempe rental laws state that no more than three unrelated individuals can live at the same home. However, I have spoke to numerous ASU students and they all told me that it is not really enforced. I also see numerous Zillow listing for 4 and 5 bedrooms homes in the area that advertise for 4+ occupants.

Is this something I need to be worried about, as I plan to rent to 4+ students most likely? Does anyone know the consequences/fines if you are caught? Should I structure the lease a certain way to protect myself?

Thank you for any input!

Hello! I have the opportunity to purchase the land under a manufactured home. The home itself is currently occupied and not for sale. I had a few questions that I was hoping someone could answer:

-Is it possible for me to get a loan on this land purchase?

-What are average down payments/interest rates for land loans?

-Will the lender use the monthly rent I would collect from the tenant as part of their underwriting?

Thanks for the help!

If you're interested in real estate investing, I would start with these:

-Save your money by investing in indexes that mirror the S&P and NASDAQ.

-Start building credit.  Open a credit card and start using it, but never carry a balance.  You'll need good credit to qualify for traditional lending.

-Free yourself from any debt you may have.

-Read.  I recommend starting with the Bigger Pockets book "The book on rental property investing".

@Nicholas Aiola I forgot to mention that I bought this computer to analyze deals, THEN purchased my first rental property a few months later (both events happened in 2021 though).  Am I able to deduct the cost of this computer on my Schedule E, even though I bought it prior to putting my rental into service?  Thank you for all your help.

@Nicholas Aiola Thank you for the response!  What expense category on Schedule E would you deduct the cost for a new computer ($650) that is solely used for my rentals and the yearly Microsoft office subscription ($60/year)?  I've heard you can depreciate the cost of the computer, but I would rather deduct the entire expense this year, as it is a relatively low expense.

@Nicholas Aiola Under what expense category on the Schedule E would you deduct a Home Warranty?

Does anyone know what expense category you should deduct a Home Warranty on Schedule E (Form 1040)?  Is it considered insurance or just an "Other" expense?

Thanks!

@Dick Rosen Thank you for the reply.  You are exactly correct, as I just spoke with someone from the Mesa tax office.  I have already registered the property as a rental through the Maricopa County Assessor.

I appreciate the responses   @Mike Leng @Christian Stoecklein

I do not own my investment in an LLC. Should I still create an expense report and reimburse myself from the property's bank account?