All Forum Posts by: Matt John

There is hail damage on the roof and gutters, but it is also time to reroof. Deductible is $2.5k and the roofer works with my insurance all the time and says they'll value my roof at $5k, so after I pay the deductible I'll still get $2.5k. They say hail damage is considered 'an act of God' and they won't change my rates, but I have a feeling they'll always track a claim and it will still affect my future rates.

I have a single family rental that needs a new roof. My insurance will cover $2.5k of the $9 to reroof. I've never made a claim against my insurance. Is it worth it to make a claim for that amount?

@Jaye Seay the idea isn't to pay down with cash flow from buy and hold, the idea is to refinance before the promo period ends.

Security deposit and first months rent were collected. I've seen other people use the term "holding deposit" separate from a security deposit. Holding deposit being 'I'm paying this to keep to place vacant until I move in' without actually paying rent during that time, security deposit being 'I'll return your unit without destroying it'.  Lease states she is responsible for rent until the unit is re-leased if she leaves early... but she hasn't actually moved in yet. So do I have grounds to keep the first months rent and security deposit until it is leased to someone else?

If you leave the washer/dryer in, tell the tenant that they are free to use the washer and dryer, but you expect them returned to you in the same working order that they are in now - aka you aren't fixing them if they break. I'll never make the mistake of being responsible for the maintenance of them again... unless you can upcharge $30/month like @Corina Eufinger. That's the only way I would sign myself up for maintenance. Even if your area demands a washer and dryer, I would still let the tenant know that maintenance is on them, but worded as you "expect them returned to you in the same working order that they are in now."

If a tenant signs a lease on June 15th with a move in date on July 1st, then decides 3 days later (June 18th) that she doesn't want to move in, can the landlord force her to pay anything? Rent until unit is leased out again? No holding deposit was collected. 

@Jason Bott Why would someone with 1,000 units carry insurance on all of them? They have enough units to spread the risk out. They could likely rebuild the entire unit on the 1-2 claims they have per year for the cost of the premiums they are paying. 

@Account Closed That's what I did too! I shopped for the ideal truck for 6 months and then pulled the trigger on a HUD house instead. It's been cash flowing $200/month for 5 months now and my old Toyota Corolla is still worth the same $2400 it was worth 7 months ago because it just doesn't have very far to fall. I'm making passive money AND not losing value in my vehicle.

I agree. I believe the area will increase in value because of the Rose District upgrades. I've looked in the area, just haven't found the right deal.

My CPA responded to my request to move those costs from deductions to the basis. She said "The general rule for capitalizing items is a $2,500 threshold amount that the IRS has set out so we generally expense items that are less than that. " She also said that I could carry forward those losses to use against my passive income gains in future years (I didn't know I could do that!), aka I can deduct them next year instead of over the next 27.5 years. So ultimately the way she originally deducted those expenses during that gray period was the most advantageous way for me to handle them... and now I feel bad about being ready to fire her that quickly.