All Forum Posts by: Milos N.

I am trying to teach my self how does depreciation work. Yes, I know I should hire a professional, but I like to understand things my self.

Facts: property bought in 2018

before being put into service some work on it have been done:

- $5000 on floors

- $1000 on carpet

- $1000 appliances

- $7000 random (paint, door fixes, wall fixes, bathtub re-glazed and other things).

I understand that all of this needs to be capitalized because it was done before it was put into service. (is this true?)

After putting into service (tenants in, etc.) more things were discovered around $2000 cost.

This is what I am thinking:

- capitalize and depreciate the floor, carpet, and appliances separately over shorter time period (5).

- capitalize and depreciate $7000. Add it to the improvement cost of the building and depreciate it over 27.5 years.

$2000 write of as repairs, because it happened after it was put into service.

Does this sound reasonable?

Hello gurus,

I am trying to teach my self how does this all work. please let me know if my understanding is off.

Yes, I know I should hire a professional, but I like to understand things my self.

Facts: property bought in 2018

before being put into service some work on it have been done:

- $5000 on floors

- $1000 on carpet

- $1000 appliances

- $7000 random (paint, door fixes, wall fixes, bathtub re-glazed and other things).

I understand that all of this needs to be capitalized because it was done before it was put into service.

After putting into service (tenants in, etc.) more things were discovered around $2000 cost.

This is what I am thinking:

 - capitalize and depreciate the floor, carpet, and appliances separately over shorter time period (5 and 3 years).

-  capitalize and depreciate $7000. Add it to the improvement cost of the building and depreciate it over 27.5 years.

$2000 write of as repairs, because it happened after it was put into service.

Does this sound reasonable?

• Do you live in California?
  • Yep
• Have you lived in California in the past 5 years?
  • Yes, since 2014
• If so, where?
  • Bay Area, first SF, since two years ago Oakland
• Will you be staying or leaving?
  • Stay for a while, definitely leave at some point
• Why?
  • because of taxes, because of real estate prices (will probably never buy a house/condo/anything), because of superficiality everywhere in the air (even though its not LA)
• What is your full time income producing job?
  • Software engineer

@Sharon Powel

thank you very much.

Believe it or not I do not use FB :). I might need to now because or REI but i kind of hate it.

Thanks again.

Hey peeps,

Got one property closing soon, and I am eager to find contractors to do a cosmetic rehab on it.

I want to get a few of them bid for the same work, and choose the ones that make the most sense.

I was originally thinking i will get them refereed by an agent and property manager.

However for now I only have a reliable agent. 

The property management seems to be tricky in Indianapolis. I tried multiple different property managers they all seem to want to do project management (which increases 10% the cost). So that thing is falling through.

How would you recommend finding contractors?

I am thinking about contacting a few rated  A+ general contractors from Angie's list. Does that make sense for an OOS guy like me? 

So get bids from the guy that my agent suggest and  a few bids from angie's list guys.

Idea is to get a general contractor that than manages the rest of them. Since it carpet replacement, and painting and such it should have to include too many of subcontractors.

Can this work? Is Angie's list a good source for this?

Any comment, tip is appreciated.

Thanks in advance

I am closing a duplex soon. It will be closed in my name (there was a traditional loan involved).

I am thinking about forming an LLC just for different things I could deduct and for the corporatettax rate.

However since the property will be in my name, does it make sense to have tenent pay to the LLC? I mean would that even work.

To reiterate I am thinking to own a house in my name, but conduct business through an LLC? Would that qualify me for corporate tax rate, plus all the possible deductions, or this whole way if reasoning doesn't make any sense.

Thanks in advance.

I spoke to 4 PMs there. They all have minimums but $100 is a bit too much.

The four i spoke to had 75, 50, 45 and no minimum.

Apart from that 10% is ok.

Hey peeps.

I recently found a deal I wanted to conventionally finance it. I asked my agent to give me a lender, and he gave me 3.

Me, not really knowing what I'm doing I asked for a pre-approval from all 3 of them.

There was a few surprising things:

1) My credit rating was actually lower than what credit carma, and bank of America (Fico score) shows. Those apps show 767 or something. What came on a paper was 747. What gives? Even now, a few weeks after the fact. Credit carma still shows it higher, than what came on those papers from those lenders.

2) Now one of the the credit tracking company (Equifax) shows 3 additional inquiries. All three done on the same day (19th of January) but strangely enough all three done by the same company (Something like 'Credit plus'). My only explanation that all 3 lenders use the same company for doing hard inquires.

Even stranger Transunion shows only one hard inquiry.

So a few questions:

Was it a mistake to ask to be per-approved by all three?

How come Transunion only shows 1 hard inquiry, while Equifax shows 3? Will this even out in the future? 

Will it even out to 1 or 3?

I remember watching a Phil Pustejovsky's video where he advises people to go "shop for a loan". he claimed you won't get the hard inquiry hit if you do it in a short amount of time (credit companies will treat it as one). Was that BS?

Thank in advance

@Brian Pulaski ok.

I got this deal from @Evan Manship and @Cory Manship maybe one of them can give more details.

I am getting a loan for one property now talking to three different lenders they all tell me 5, the only one that was precise told me 5.25.

I have no debts whatsoever high salary, no dependents, no mortgages, nothing and a credit score of 763

One of them told me that I am getting a hit because the amount (home is priced at 75k and im likely to pay it 62 or so). I asked them would the rate be better if I buy a more expensive home. Still waiting for a reply.

Is all this normal? People are usually talking about 4.3 rates and such.

Has something happened?