All Forum Posts by: Li Tolentino

Last year I spent about $1600 on inspection cost and appraisal fees for two properties that I ended up not purchasing them. I did purchased two other rental properties. Is there a way to deduct them on my tax return? Thank you. 

Hello KCMO investors and locals, what do you think about the neighborhood of St Catherine's Garden, zip code 64137. South of 435 and east of 40. Is this a B or plus neighborhood? Do you think there is any upside for this area? I am looking at a 3/2 SFR property at lower 130ks. Thanks.

1st property under contract. Inspection shows past fire - attic frames are painted white. Current owner is aware of fire 30 years ago but it was not disclosed when she bought the house 11 years old. The house otherwise in good condition - inspector did not see any structural issues. This is in KSMO.

Is past fire any concern? What are my options? Thanks for your input. 

I have two SFR under contract with my partners and I am looking for advice on how to structure conventional loans with partners. It will be a equally divided partnership and everyone will contribute same amount of money for down payment. I am thinking of having each person buy one property separately and later transfer the title to LLC (to be formed). We understand the due on sale clause and we are willing to take the risk.

My question is:

1) Is that a good strategy? Or is there a better way to structure it?

2) Since the mortgage only has one person's name, can we deduct the mortgage interest in LLC's tax return instead of that person's personal tax return?

Thanks for your help.

First time CA investor, got two SFR under contract yesterday (8/31 and 9/21 closing date) in Kansas City. I feel I should go check out the property in person and meeting with contractors/PMs etc. Can only be there for the day or max one night. What is the best time to visit?

1) At the inspection

2) After the inspection and reached agreement with seller on fixes or prices, but before the contingency period ends. 

- I am assuming meet with contractors & property management during this time?

3) After inspection contingency. 

- I probably can't back out at this point without losing the EMD. Is there any particular reason I should visit at this time?

Please help me vote and state the reason. Greatly appreciate your advice (dos and don'ts) to share for a newbie investor?

Thank you!

I am trying to decide if to use self directed IRA or cash to invest in a syndication project. Is there any advantages such as tax savings, depreciation for using Cash? I understand that using IRA it could be subject to UBIT because of the debt financing for the project but that seems not to be a huge amount. Other than that, what additional benefits can I get with investing with Cash? Thanks.

@Ali BooneTotally agree with you Ali. The reason of using LLC is to avoid adding anything to my personal debt due to an upcoming home purchase in CA. Our debt to income ratio is already high and my banker suggested putting investment in LLC to avoid impact to future home loan.

In terms of properties, we r open to both SFR and MFR. but we really want to keep it under $200k starting out. Looking for a safe 10% CoC return - which seems quite difficult if I am to look in good schools areas in KC out of MLS.

I am also considering doing a LLC for myself first. Only when we find a deal, I would then add partners in as new members and every one wires money in when an offer is likely to happen. I wonder if this could work.

Thanks again.

@Brian Eastman, thanks a lot for mentioning UDFI. I am guessing that is the tax for the specific IRA investment. Will look more into that one. Thanks.

That makes a lot of sense, thanks Tyler.

What are the tax consequences for investing in syndication project with a self directed IRA? I was told by a IRA company representative that I may need to pay UBIT (unrelated business income tax). Is that true? The project I am looking at has a 60% commercial loan and have both Cash investors & IRA investors. Thanks.