All Forum Posts by: Kenny Boyd

I have a duplex currently under contract to sell for $84k,  in a mid sized metro inner-city.  Asking price was $90 and this is second time under contract since Jan 5.  Bought for $40k 3 years ago, put $6k into it, have rented it out for $2k/ month since.  The only reason I'm selling is due it being a class D property/neighborhood, and I'm looking to improve my portfolio class, and id rather not fix anymore bullet holes.

Buyer did inspections and came back with a laundry list of repairs, trying to justify a low ball reduction to $70k, minus 5% comm.   I had in mind a take home number of $75k or else keep it and continue milking the money tree.  It is half occupied and I could fill it up in a week without any repairs.

Feedback appreciated

Hello,

I'm starting a search for a reasonable/reliable bookkeeper with experience in RE investing, specifically rentals and construction projects.   

Please reply if anyone has a good referral.

Much appreciated.

Also meant to ask if you use Fixed Asset Manager and if greatly simplifies the tracking?

Greatly appreciate the responses!

@GitaFaust  Do you use the same useful lives for accounting purposes, as well as tax purposes? Also, in the spreadsheet, do you generally see or recommend having groups of property by life for the year placed in service, for example 27.5 year row for the residence in year 1, 5 year row for a dishwasher and fridge in year 1, and 15 year row for landscaping? One you keep all of those "asset" classes on one tab per property in an Excel workbook containing all properties for an LLC or would you do separate workbooks for each property?

For the BP crowd using Turbo Tax and QuickBooks, how do you keep track of real estate depreciation for investment properties?  Do you enter it manually or let TT do it?  Or other?

Thanks BP

My wife and I reside in a community property state (LA) and are the sole members of an LLC that own several rental units and a non-income generating vacant property. We will treat the LLC as a disregarded entity under Rev. Proc. 2002-69. For 2013, I qualify as a real estate professional. Our understanding is that we should file income and expense for the rentals on Schedule E and that we should treat them as jointly owned. A few questions, if anyone can comment:

1) Does Schedule E sound correct?

2) Recommendations that couples in this situation reporting the disregarded entity on Sch C file split the P&L and file separate Schedule C's are just meant to allow each member to capture social security benefits from the self-employment tax, correct?  That is, we will only file the one Sch E listed each property once as jointly owned?

3) When and if we flip the non-income generating property, it will have been held over a year. However, won't it need to be reported on Sch C since it will never have been income-generating? Is it ok to report some of LLC activities on Sch C and some on Sch E?

Any thoughts are greatly appreciated.  Also, we have not been able to find a CPA or attorney with the appropriate expertise to help us in Louisiana, so recommendations are also welcome.

Thanks BP!