All Forum Posts by: Michael Bertsch

Brandon Hall thanks for the reply! The replacement cost me about $550. My understanding was you can't us the De Minimis safe harbor if the item cost more than $500.

I just replace a broken water heater on a SFR that has been in service for about 7 months. Now, I'm getting all my books in order. Would you guys write it off as a repair since it's a small section of the UOP, depreciate, or use bonus depreciation?

Eric C. Some banks have overlays (extra requirements) and will require 2 years tax returns/experience before they will count your rental income. I would just ask around for an investor friendly lender and you will be in good shape. Also, they will drop your PITI on investment properties if you have an active lease.

If you are gonna be a buy and hold investor, it would benefit you greatly. This is because having a higher paying W2 makes it much easier to scale. You can accumulate money faster and leverage with bank financing. Banks love to see a good W2. Go to an affordable school and grind it out for a few years. The degree is something you can be proud of the rest of your life. It's still possible without a degree. You are just more likely to have a lower paying W2. You will just to sacrifice in some areas.

If your properties are rented, show the lender your lease agreement for each property. They will remove the PITI on your properties. That will free up your DTI. DTI should never be a problem as long as you are buying right. Best of luck to you!

Michael Cohen I have a HELOC on my primary residence and I have used it several times for down payments on investment properties. Lenders have never had an issue and they follow all Fannie Mae guidelines with my loans.

Yes, will save yourself a ton of time.

I'm a fan of holding properties forever. Whenever you sale, the taxes are ridiculous. You have to pay capital gains and depreciation recapture. Why not hold and leave the properties to your children? They get a step up basis on the properties after you pass. They will pay little or no taxes if they decide to sell.

You absolutely need to get a credit card. Get one asap and start building that credit. Make sure to actually use it and pay it every month.

I personally buy properties built after 1965 because I avoid many problems with electrical and plumbing which can cost you a fortune and eat your cash flow. You can find this in older houses. For the electrical, they usually do not have a ground and the material used for cable insulation will deteriorate over many years. On Plumbing, They usually have crappy galvanized supply lines that will break down from inside out. It's a huge mess. Please stay away from it. I like brick houses because it requires less maintenance over the years and looks better in my opinion. You also get a slight discount on your insurance for having brick. It adds up when you have many houses. Try your best to buy in a better school district because you will get better quality tenants. They will want to stay longer and you will have less vacancy. Your property is more likely to appreciate too. Hope this helps a little.