All Forum Posts by: Katrina P.

Thanks, guys. Great input! I agree..great thread!! :)

Yep, makes since. Thanks!

Well, that's what I was trying to find out...exactly what HE meant by doing that? From what I got out of it (remember, this is my first time flipping a house, so I have very limited knowledge of how the tax situation, etc. works), I believe he was saying that on the contract, we can basically make it look like I paid maybe 85% of the cost on materials, and the remainder was paid to him. Then, at the end of the year, I would only 1099 him for the cost of his labor? But I guess in that case, I would have to purchase the materials directly? So let me get this straight...when we 1099 our contractors, they're taxed on the labor & materials if they buy them? Or are they always just taxed on their labor?

So can you guys weigh in a little more with the idea of skewing the paper work a bit to reflect the weight being on the materials side vs the labor side, so we can reach both goals that way? What are the implications of doing it this way?

Thanks for all the input, guys!

Hey everybody,

Hubby and I are in the process of finishing up on our first flip, and we have some finishing touches that need to be done (i.e., changing receptacles, cleaning trash out of attick, painting inside of closets, etc.) to get the house on the market. Well, the "handyman" we found on craigslist gave us a price of around $2k, but when I told him I'm going to send him a w9, he said, "Aw, you're gonna w9 me?" He said that if he gets a w9, they'll take 30% of his profit, and since he does it on the side, he charges less than other contractors would. He said that if we w9 him, he'll meet us "half-way" and just up the price by 15%, so he'll eat the other 15. He said the other way we could to it, is put most of the cost on the "material" side, so that we can still write off our improvements, but he wouldn't be taxed too much. And of course the final option is for us not to w9 him at all...any input? How does either of these scenarios affect us..we're still so new to REI..need help please.

Katrina

Thanks for all the input, as usual, guys! This forum ROCKS!

Hi All:

So I just have a quick question...have any of you ever found it very difficult to find tenants for a place you recently renovated? I'm just asking becasue we bought several units within a matter of weeks, now they're all undergoing renovations, and I just can't help to wonder if we'll have a difficult time renting them out. I mean, all the neighborhoods are decent, but I guess it's just my "fear" as a newbie. Anyone?

I would share my portoflio online (minus the addresses of course); but I consider myself a pretty "open" individual, so I can tend to be an open book (maybe too open sometimes)...

Thanks for responding, Mariah. So how long did it take you to get all your properties performing? Also, what method are you using for buying...bank, credit union, hml, etc? Thanks