All Forum Posts by: Ken Latchers

When renting out part of your home, you are basically deducting and depreciating the portion that is rented.

For example, if you live in a room and rent out two other rooms, and the renters have full use of the common areas, you would be deducting and depreciating about 67%. Of course, you should consult with a tax expert especially in the FIRST year to set yourself up properly.

If in the future, you would stop renting out a room, you would drop down to 33% in this scenario.

One of the benefits of rental properties compared to owning a business, even if too many investors, you should be able to rent out the unit at some (even lower) price. (Whereas a business may fold if not meeting its costs)

I am mostly a longterm B&H person. Every deal should have cashflow well above your costs. I am very much expecting things to get worse for landlords. But even strongly reducing rent, as long as you are making your costs, at least you are paying down principal and making something.

Ah, back flips

One of the gurus who regularly emails me was crowing like it was something clever he came up with.

I generally think that liability protection (in several directions) is a 4-legged stool:

- MORE than adequate insurance
- Very well managed LLC
- Very well-detailed, lawyer approved lease/contracts with all tenants or workers
- do everything with integrity to the spirit and letter of the law.

@Russ

I would not advise jumping out of your job soon. Assuming it pays reasonably with benefits.

Having a job helps with your ability to take on credit, helps pay your medical, and other things. And gives you a lot more oomph with lenders (self employed people struggle to get loans, etc.) In fact, it might be useful to keep your job until you reach a very solid position.

People are in a hurry to get out of their jobs, but things happen, and a steady job with benefits has a lot of value in uncertain times.

Now if you flip hamburgers, I totally understand.

@Will - new here, so I thought it might lead to a +/- vote. Now I learned :)

I think it also goes to a good lease. If condition of apt is properly documented, and tenants scuff up stainless steel, then I would think you might have recourse for the damage. Pix before/after never hurt as part of checkin/out.

I am in low rent country, so it would be extremely hard to justify anything upscale. I go for the middle of the market.

1) I agree to the early comments about losing control of the situation. I never tolerate a tenant "yelling" at me.
2) Do not let tenants apply your solution.
3) I probably would have brought every pest control company in the book over for a "free" inspection. Maybe one of them would have had a unique approach.
4) FWIW (in an older home), I usually replace all older traps/plumbing under each sink and accessible tub/shower units.

The biggest concern I have with the Lead issue is this uncomfortable feeling that at some point in time, various governments decide the only way to handle it is to require landlords to REMOVE all lead-based paint (some of the things I have read in the past are a little concerning). This is one thing that keeps me away from certain parts of the country (such as major cities), Section 8 and other things. For example, some forums have discussed places like NJ requiring landlords to accept HUD/Section 8 for "discrimination" reasons, even though it is supposed to be a landlord's decision in theory.

@Andrew Massaro

I don't judge any of my actions ethical vs unethical, or moral vs immoral. ... the fact that bandit signs are illegal doesn't deter me.

Undoubtedly the worst thing I have read on these forums so far. Does this attitude make it into your testimonials? People like you give a bad name to the industry...