All Forum Posts by: Mohammad Nur

You are pretty much describing the current house that I am under contract. We did negotiate some repair cost but I have a feeling that I will have to spend a ton to fix all the issues. 

@Robert Leonard do you know about anyone ? Patrick is my neighbor and a fellow investor. 

She isn't necessarily cheap. I am paying 550 for two rental properties and a pretty straightforward tax return. 

@Ashish Acharya, that's what I understood, that I can't depreciate the portion of the land value. That's why I was puzzled by my CPA's recommendation. 

I bought a rental property for 220 K last year. From my tax assessment, 80% of the value was assigned to the building and 20% of the value was assigned to the land. So, based on my understanding, I can only depreciate 220X0.8= 176K over 27.5 years, since I can't depreciate land. 

However, my CPA is telling me that I can depreciate the total purchase price of 220 K as I didn't buy the land separately. I would only separate land if I bought the land and then build on it. 

So, my question is which is the right approach? P.S. I am just including the purchase price for making it simple. Some other fees will be added to the cost basis.

I honestly couldn't tell you. Theoretically makes sense, but you would need to talk to a lender/ broker. They change rules all the time.  

I have used the Home Possible loan program to buy my Duplex with 5% down. But that was my very first house and it was as a primary occupant. I don't think I can use that loan program again since I have a mortgage in my name even if I were to move to difference place. 

I have personally bought a duplex with 5% down. My lender also initially told me about either FHA or 15% down requirement. But I did some research and found that my home was eligible for Home possible loan with 5% down.

@Mei Acosta, there are conventional loan products for Primary house which allows 5% down (there are some requirements). You can look into Freddie Mac's home possible loan program. 

@Allen Lopez, I rented to student going to LSU in the Baton Rouge area. I typically make everyone joint and severally responsible as suggested by @Nat C.. I also require at least one of the parents to be Co-Signer. I don't think it's too common to have first and last months rent as security deposit. Considering your house is probably one of the most expensive houses for rent (assuming 3 bed / 2bath), it would be harder to find a pool of tenants willing to pay that much. Having said all of these, since this is the peak time for students moving and renting, you can ask for higher deposits if you have lots of interest.