All Forum Posts by: John Chapman

I heard the new tax law allows first year expensing. Does that apply to appliances, flooring, etc.  Are residential rental buildings still going to be depreciated over 27.5?  What about roofs are we still going to have to depreciate them over 27.5 years?

As a sole prop do I have to have employees to get the 20% deduction?

My thinking was that it would just be a tool for the cleaners— instead of a normal vacuum. They would inspect the area to be vacuumed and then turn it on while the human cleaners were working on the kitchen or bathroom.  First make sure no dog poop on the floor as in the USA article!

Do you have any experience using robot vacuums for cleaning your rentals?   I’m considering using them this year and would be interested in your thoughts. Thanks 

Has anyone used robot vacuums for cleaning rental properties when turning units over?  I'm wondering if they are cost effective or if its cheaper and more efficient just to have a cleaning person do the vacuuming of the carpets and floors.  Any experience you have would be very helpful.  Thank you.

Justin,

Could you tell me about the six-plex you have for sale in Pullman?

No, I haven't, although I believe the property is still available.  I might make another (or the same) offer in a little while if it is still available.  The original listing price was completely unrealistic and had no basis in reality so that's probably why there have not been many offers.

Thanks, Eric.  I'm pretty much a buy and hold investor so pre-payment penalties are not a huge issue for me.

Ok.  Thanks, Eric.  I don't have a signed P/S agreement yet.  But if I do, I'll definitely contact you.  Thanks!

Thanks.  I can get bank financing here locally for a decent rate --10 year loan, 4.5 to 5% with a 25 year amor, so I think I will just go that route. The property is in Pullman, a small college town and it is 31 units and is over 90% occupied and has been for a number of years. 

 I haven't been able to get a Fannie Mae or Freddie loan for 1-4 unit properties for a number of years as I am over the 10 property maximum (which they only began to enforce after the recession in 2009).

I haven't before heard of the Fannie/Freddie Small Balance Loan program.  Is that for multi-family > 4 units?

Thanks for the info. My seller won't wait 6-9 months, maybe I should get a regular 10 year loan and then investigate re-financing with HUD. What are the fees for? Inspections? Appraisals, Environmental assessments? Is HUD a direct lender or do they issue guarantees and work through commercial banks?