All Forum Posts by: Cheryl C.

A "deal" to me is something where I am making money going in (buying under-market), where the numbers "work"  (I don't have a fixed $$ per door rule - too many other factors at play), the employment center is good and appreciation is likely.  I have pretty specific locations where I own/buy and it takes me about 10 minutes (or less!) to know if something is a "deal".  I am in a "holding pattern" right now - no pun intended!  I don't really want anymore rentals, but I love to buy.  The flip opportunities are limited and I'm kind of lazy...so nothing much is happening.  I am in a different place than I was when I started investing in my early 20's.  I'm in pay-off mode and training my assistant to handle everything while I spend winters in FL and summers at the beach.  I control my buying addiction by finding deals for my friends (:

Hello Kareem,

Flips are considered ordinary income and do not qualify (and, hopefully, you won't experience losses). @Steven Hamilton II would be best an answer your questions as he is a tax pro. Being able to offset depreciation without phase-out or limitation is the main advantage of having the non-W2 spouse handle the rentals.

Allstate just cancelled all my umbrella (5mil) insurance on rentals. They had previously capped me at 12 (grandfathered - I think their new limit is 4). I'm looking to move everything (homes, cars, rentals, boats, etc. - and, of course, my umbrella). Thanks for any help/referral.

@Will Barnard . This is what I plan to do. especially with carpentry. I may do the tile as well as ceiling fans.

@Account Closed The house is in King George, 12 miles from F-burg. You are probably aware of the development built in the early '60's. Tims II is there. We are one of 20 on the water and virtually the only tear-down left.

We have county water/sewer and all utilities at the site. My bad for not being more involved. My husband got some very good references from friends. The builder (design/build) delayed and delayed getting plans and numbers to us and we didn't want to miss the summer. We had only a short time to sign the contract so he could get permits. We probably should have put it off until next year. He broke ground in February and was supposed to break ground in Sept or October. Now it's rush rush rush to select everything.

No issues (except Bay Act) with site, topo or soils.

I've resigned myself to a possible rip-off. I no longer care. We are paying cash.

Thanks Bobby. I'm having my long-time GC go thru the bid line by line. He told me that very good quality granite should be $55 max and that the cabinet number was way high. My husband is getting the appliances thru the GE Store for 3K less, etc., etc. We stupidly zeroed in on this builder before firm numbers due to his referrals and meeting him. Live and learn.

Hi Karen,

Wow lots of important questions. It's a two story with a Finished basement. 9' ceilings. Elongated 1 and a half car garage (for the boat!) Tons of windows/sliders on the back (it's on the water). No crown or base moulding. 2 skylights. 3 bed/4.5 baths. Open floorplan with great room/dining/kitchen open. Upstairs hall overlooks greatroom. I got him to go from one color to three for the interior. One color for all baths. Cabinets are "grade B" (?). $100 per sq ft allowance for granite (kitchen only). With the exception of the master, which will be fully tiled, have a walk-thru rain shower, jacuzzi tub, dual vanity (not sure of vanity tops), all baths are molded plastic with tile floors and decent vanities. Gas fireplace with stacked stone hearth (large niche for tv). He's putting a buried propane tank in the front yard for the range and fireplace. All faucets are Moen. Stamped concrete drive and walkway. Two covered, screened porches - one off kitchen and the other off MBR. Enclosed outside shower. House has an interesting facade with many gables, etc. Columned entry with nice door with side lights. Main level hardwood, bedrooms and basement are nice carpet.

We have checked him out thoroughly. He was referred by two business associates of my husband.

p.s. the guy also has to demo and remove existing house.

Thanks for the input Liam. I guess my expectations are too high

Tony, I'm with you on RTC. I actually moved there myself (downsize) last year. Bought a TH. I'm not too concerned about the inventory in the pipeline. Rents and prices will be very high due to land and construction costs. My rents are much lower. I have one condo at RTC that I bought 12 yrs ago. The past few years, I have been buying across the street in a conversion development - you probably know which one. If anything, the new construction will pull us up in terms of rent and prices. PM me if you want to talk Reston.

I have never had a problem with vacancies in nova.

We are doing a tear down of our long time weekend place and working with a builder on a decent sized home.. His numbers keep going up for the construction and I think his allowances are very low. This is a mid to upper level custom home. The area is somewhat rural -75 miles South of DC. The Builder is down there (15 miles further). He told us that he couldn't believe how cheap it is to build down there.

On 500K (excluding lot and utilities), what would you builders expect for lighting allowance, interior carpentry(built-ins,crown molding, closet system), sound system, appliances, landscaping, tile, cabinet grade, granite, hardware,etc? We are getting hardiplank shingles, sanding seam roof, stacked stone water table, main level hardwoods (sanded in place), etc.

He has no allowance for master closet system, landscaping, $600 for lighting,11K for appliances, to include washer/dryer. He has listed molded plastic for the 3 guest baths.

Is there some sort of percentage for these items?

Any advice is greatly appreciated. House is about 3K sq ft with a 1K basic finished basement.