All Forum Posts by: Account Closed

I am getting a bit confused about what capital improvement costs for my real estate portfolio can be immediately expensed vs need to be added to my basis and depreciated over time. I am further confused by the concept of Bonus Depreciation and Section 179 expensing, and how that impact things. Add to that confusion is the concept of Safe Harbor as it applies to all of the above. Finally, understanding how the new tax law impacts all of the above rounds out my questioning.

Can anyone point me to a overview that talks to all of the above issues and spells things out clearly?

You can now deduct personal property in real estate. Use this when over $2,500. But, you should check and see if it qualifies for the bonus deduction first.

I remember hearing that this was not a good Tax Bill if you do wholesaling, I can't remember the specifics but you should look into it if you do wholesaling. I believe the question regards whether your wholesaling activity rises to the standard of being a "trade or business".

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Originally posted by @Mark J.:

Thank you @Account Closed Appreciate the clear, straight-forward answer. I will proceed that way.

Could you offer any details on specifically how the new tax code is a benefit to small business owners and how a part-time real estate investor like me could benefit?

Thanks!

I think you want to check out "Section 199A: Pass-Thru Deduction"

If you are a trade or business (flipping, rehab, consulting etc) and make under $157,500 filing single or $315,000 married filing jointly, your life just got a lot easier and more $ucce$$ful. Thank Trump.

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Originally posted by @Kirk J.:

What is the best way to get a property out your name quickly? I'm considering doing a Quit claim deed to put the property under my LLC. This would only be for a short period of time(i.e. 2 months). Property has a mortgage.

A quit claim deed would violate my deed but a trust does not. If I used a quit claim, will the information be reported to my Mortgage company before I am able to change it back into my personal name? Are there rules around transferring the property back into my name?

Is using a trust a better option?

The nature of your question requires an attorney's response. The obvious question is "why do you ask". Depending on your answer it could be an "okay" idea or a very bad idea.

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Originally posted by @Tj Hulse:

Hey BP - I'm helping my buddy renovate his new Triplex and he just ran into this issue. He bought the property from his Grandfather about 6 months ago - 2/3 vacant - The 1 tenant is on a year lease until April 2018. Initially when purchased, my buddy wanted to do a month to month lease with this inherited tenant, but the tenant asked to revert to the old lease to avoid complications which my buddy agreed on.

In speaking with his grandfather, he has been informed that this tenant had some late issues in the past (none with my buddy yet) and may potentially be a squatter. We are coming up on 2 months prior to this lease expiring, and he will be collecting February rent soon when he plans to remind the tenant he is to be out as of April.

Any tips and what are the legalities on this inherited lease to make sure this guy is out ASAP? It is an older building in need of a considerable makeover, so he really needs this guy out. It is also hindering him being able to remodel and live in his own unit per his decency not to be banging on the walls of this tenant that preceded his purchase.

Thanks guys - Much appreciated!

~ TJ

Find out what the local Landlord Tenant laws are and follow them to a "T". Contact an eviction attorney for details.

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Originally posted by @Mark J.:

Given the new tax code, are there any tax advantages to titling a flip property under a single-member LLC vs under my personal name?

Many thanks in advance!

Mark...

The new Tax Code is a DREAM for small business owners, especially real estate investors! An LLC is for asset protection and has no impact on your taxes (unless you do something really stupid like declare it as a Corp. for tax purposes which you won't do now since you know.) Keep it simple. Buy the property in your LLC for asset protection and do your flip (buy & hold is better) but you get the idea.

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Originally posted by @Jake Miller:

I had a tenant that I inherited and did not renew the lease which is up 1/31/18. I gave them a 60 day notice that their lease would not be renewed. They just sent an email stating they will be paid on the Friday, February 2nd, and because of that they are having a hard time coming up with first month and a deposit. I was planning on working on the unit and then moving in this weekend. I'd obviously prefer them move out on the time we discussed but was wondering what the appropriate steps should be.

Thanks

Since you aren't really clear what you are willing to do (you say you "prefer" but that doesn't hold up in court) you have to decide if you mind if they stay there another month or if you want them out *now*.

Either way, you have to follow Arizona Landlord Tenant Laws here:

https://www.azag.gov/sites/default/files/documents...

You might want to contact Andy Hull Attorney, and start an unlawful detainer. Don't try to do this one on your own. Use an attorney.

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Originally posted by @Derek Robinson:

I'm closing on a piece of property this week. It has two single wides currently. One has the VIN and other info on a sticker in the master closet, so I'm good on that one. The other has been "remodeled". All interior cabinets and closets are ripped out, so no manufacturer info panel. I looked on the front I beam and can barely see some letters and numbers scratched in, but too faint to make out. Plus, it doesn't seem like there are enough characters to make a full VIN. Owner of property purchased 8 years ago from a realtor who bought it at a tax sale, so tracking down an owner seems out of the question.

Do I have any options here? My plan is to subdivide the land into three parcels, bring in a third trailer, and sell the 3 individually (I have a bank in the area that will finance single wides on land). I guess I could keep the trailer with no title and rent it out, but I would prefer to flip. The bank won't finance without title or VIN. Maybe I owner finance it and collect my proceeds over time plus interest? Maybe take it out and get a used trailer with title in it's place?

Mobiles usually have the VIN stamped into the frame underneath the unit. Try looking there. Use a little water on the stamp mark to make it easier to read.

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Originally posted by @Lane Kawaoka:

Attached is ALN Market Stats

https://drive.google.com/open?id=1sD7E8Z8rY_3W3WZmDBIlrf7xDBYi_pYE
-Occupancy -Rent Increases Where is people looking that are not the usual Atlanta, Texas triangle, Carolinas, etc?

I like Phoenix. If you are interested let me know.

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Originally posted by @Elizabeth Cordero:

So I guess I was to brave to take on a new project thinking I’d figure it out along the way. I’ve purchased this house in a great location ARV 325, PP 160 . My issue is getting the process going, I know we must take half of the house down but the engineer I contacted gave me this whole lecture as to why he can’t help me, me being very resourceful want to only find people with a vision ( those who find a way). He told me the drawings come first then he comes in. The architect on the other hand, says the opposite. Which one is it??? I’m in the state of Utah in Salt Lake City. Anyone has good advice for me?

Why do you need both an engineer and an architect? Are you building the Taj Mahal? Find a contractor who knows his stuff. A contractor can do both jobs.

Step 1. You have to remove everything that smells like smoke. Then Step 2. Do Step 1 more thoroughly.

I would put Posts every 10 ft on the supporting beam (Home Depot or Lowes can help here) then remove all burned material. Order a big dumpster. Put in supports and rebuild framing. Install water lines and electrical. Have inspection. Then install insulation. Inspect again. Then sheet rock. Inspect again. Then paint, fixtures, etcs. Or, Get a good contractor.

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Originally posted by @Tommy Sessions:

Does anyone have experience buying property with a trailer house on it? I’m looking to purchase a lot with a house and trailer house on it. We would pay cash initially but do a cash out refi after renovation just curious if anyone has had experience with getting banks to loan on the property with a trailer on it. The trailer is not on a foundation but has its own separate power pole.

In order for a bank to finance a manufactured home on land the home must be "permanently attached" to the ground with the axles removed and resting on blocks or on a foundation with skirting around the home. It also must be newer (2005 or newer?) It depends on the bank. If you are rural USDA might finance the property. It is called "elimination of title". Otherwise, the mobile is treated like an automobile as far as financing and title.

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All Forum Posts by: Account Closed

Account Closed has started 9 posts and replied 390 times.

Post: Expensing vs. Depreciating Assets Under New Tax Law

Post: Is the New Tax Code Good News for Single-Member LLCs?

Post: Getting a Property out of my name

Post: Pittsburgh PA - Inherited Tenant - Need him out ASAP

Post: Is the New Tax Code Good News for Single-Member LLCs?

Post: Tenant asking to stay past lease

Post: Mobile Home, no title or VIN on trailer...options?

Post: Next emerging market?

Post: Process of Rehabbing a house that has been on a fire

Post: Financing a property with mobile home on it.