All Forum Posts by: Matthew Defore

@Frank Geiger Once the kitchen is complete, along with a few other things, rent will go from $1050/mo to $1170/mo

@Bryan Devitt Thanks! Very helpful, getting me closer to avoiding mistakes and headaches.

@Tyler Hampton The goal is to continue renting, and of course increase rents once the improvements are completed. 

I've noticed that some of the soil is starting to wash out from underneath my patio slab.  Obviously, my concern is that if this continues, the slab will settle and crack.  How can I improve its support, seal it and prevent further erosion? 

SECOND ISSUE, check out the last two pics and tell me your thoughts - is this soil erosion, or snake holes?

@Bryan Devitt These properties are in an LLC. In their current condition, they are probably a C+.

I am far from being fluent in taxes, but my understanding of the purpose of the W9 is to evaluate if a 1099 will be sent?

What would you do with the kitchen in the attached pic? This will be my first time to mess with any type of improvements on my properties?

Here's some of the ideas that I have floating around in my head now:

• -New countertops... Granite ($30 sq/ft?) What's your opinion on the benefits of going to granite instead of lower-cost formica? 
• -Paint the cabinets white (do this myself for the cost of chalk paint)
• -New hardware on the cabinets, do this myself (Couple of hundred dollars?)
• -Replace the appliances with discounted stainless steel models ($2250? Fridge, oven/stove, dishwasher, microwave/vent) 
• -New sink, porcelain or something? $400?
• -Keep the floors as-is ($0)
• -Paint the walls grey, or tan? Do this myself for the cost of paint

Your thoughts?

(the pic is upside down in the post, but if you click on it, it will open correctly)

@Bryan Devitt Hi Bryan, due to my inexperience, I may be misunderstanding, but are you saying that if you were to hire an outside worker to complete a kitchen remodel, you don't ask them to complete any tax paperwork on the front end? My understanding is that my CPA would want to know their type of tax structure and tax ID number?

Otherwise, I'm understanding that you're saying that it makes no difference in terms of my own tax deductions if I hire a professional LLC contractor, or an amateur friend of mine who has no professional/corporate structure?

Your other concern is certainly valid. I suppose that is tied into question 3 in my original post, at what point would the price difference make it worth it to you?  For what it's worth, this project is fairly simple, it doesn't involve messing with plumbing, electricity, removing walls, etc  - just typical paint, appliances, counters, etc. 

Hello, I am new to REI and still crossing some bridges for the first time. My question today relates to the following scenario:

I have some kitchens and bathrooms that need to be remodeled in several of my units.  An acquaintance of mine has experience in successfully completing this type of work, however he does not do it professionally.  This person will be able to complete this work for thousands of dollars cheaper than a "professional" contractor.  However, this person would be opposed to  completing a W9. 

Question 1) Is there anything "wrong" on my side of things if I pay someone for work who does not complete a W9?  Is it fully their responsibility to handle their taxes, or could I be culpable under these circumstances?

Question 2) If I do pay this person without receiving a W9, does this prevent me from claiming my payment to him as a tax-deductible expense? 

Question 3) In your opinion, is there a point where the price savings could be so great that you would consider it to be worth the consequences of not having a W9 from the contractor? (assuming that this is not illegal)  To use an exaggerated example, suppose the non-W9 worker will complete the work for $5000, whereas a professional would charge me $15,000.  

For the purposes of this question, assume that the non-W9 worker's quality of work is equal to a professional's.

@John Warren  In this particular situations, would you have any concerns about buying this property if my agent was also the listing agent for the property? What kind of risks am I at for him to downplay any of the negatives on this property just so he can close and get both sides of the commission?

EDITED: mistaken post!

What kind of additional due diligence would you conduct beyond an ordinary inspection for a home that was built in 1931?  Based on the photos and listing, it appears to be in good shape, move-in ready with some recent upgrades.  What specifically would you be concerned about given the age of this home?