All Forum Posts by: Piper Mullins

Thank you, Ashish!

Hello all, I'm a new investor with a property that has taken longer to renovate than expected (thank you, cold January and burst pipes).  We have I have Craigslist ads and emails looking for renters in 2018 (so it's been placed in service), but no one was interested until we finished allll of the renovations. On Schedule E, line 2, can I still deduct some of my expenses on this property even though I have no income in 2018? And if not, could I still carry forward those repair expenses to 2019? I read somewhere on BP that no income but still deductions was a good auditor flag. Also, our AGI is over $150K, and we're not RE professionals. Thanks!

Thanks, Andrew, I shall.

Thank you, @Andrew Postell! Quick question on Schedule E, line 2. We have a property that has taken longer to renovate than expected (thank you, cold January and burst pipes). I have Craigslist ads and emails looking for renters in 2018 (so it's been placed in service), but no one was interested until we finished allll of the renovations. Can I still deduct some of my expenses on this property even though I have no income in 2018? I read somewhere on BP that no income but still deductions was a good auditor flag. Thanks!

Thanks, everyone, for your advice! 

Thank you, Adam! Yes, I'm leaning toward #1 and create the plans myself with my realtor's advice.

Hi everyone,

I'm just starting out in real estate (though I've been self-educating on BP for a year!), and thought you might offer some advice. If I'm in the wrong forum, please redirect me.

I recently purchased a 1920s rowhouse, ~1600 sq ft, in the DC area as a "live-in fixer upper", and I intend to renovate it, rent out the basement, and hopefully sell it in a few years. The previous owners did a lot of the work themselves (we think they were in construction judging by the use of leftover materials)....and it's not exactly stellar work. 

I'm trying to find the best plan of attack for the projects with an eye towards budget and resale value. My partner and I plan to do some of the work ourselves (painting, laying kitchen tile, etc), but will need experts for many projects. Do I: 

1) list the renovation projects separately, and find contractors to bid on them one at a time (with a vision I've created from researching other rehabbed houses in the area)?; 

2) hire a general contractor to do all the work at once?; or 

3) hire an architect to generate an overall vision, and then pick specific projects to work on one at a time?

In addition, I want to rehab with an eye towards a budget. Which of these projects is likely to yield the most resale value return, with an eye to keeping costs down: the minor kitchen remodel, laundry room addition, half bath addition, orpossibly adding another full bath on the top floor?

I appreciate any and all insights you have to any of these questions!

Thank you everyone, that's helpful advice.

@Russell Brazil, some DC areas have seen more stable prices that rise with inflation but don't see as much appreciation (i.e. west of Conn Ave). If I bought a place in Petworth for $650K, is that price most at the peak of the  market already? In your opinion, what are the likely appreciation rates in different neighborhoods?

@Teresa F., are you suggesting to buy the whole four-plex as a multi-family deal, or I buy one-two units in such a building?  I actually just toured a four-plex in NW that was just renovated as a flip, and am considering purchasing two of the units out of four with a partner....we wouldn't stand to make cash flow but could at least stabilize living costs and potentially buy the other two units later - do you think that would ever be a smart investment?

@M Marie M., great info, thank you. I don't think DC has any more incentives to buy houses. Do you rent out to short-term leases over Craigslist?

Thanks!

Piper

Hi all,

I'm a new real estate investor living in DC, and I'm considering buying a home with rental income potential - using a buy and hold strategy to live in in for at least a year and rent out part then all of it. I don't have the cash reserves to invest in a rehab-ready unit, but can put more than 4% down, depending.

However, the market seems so hot right now that I'm wondering if it's a good idea. Most 3 bed/2 bath houses or condos in NW (Petworth, Brightwood/Takoma, Ft. Totten) near a metro are going for $550K minimum, only some have basements to rent out. I want to stay in DC, so would be paying increasing rent anyway. What are your thoughts on buying a property as primary residence and rent to tenants or Air BnB? Do you have maximum price or other criteria? What do you think the housing appreciation prices will do in the next few years?

Thanks!
Piper

Hi all,

On a similar note, I'm a new real estate investor living in DC, and I'm considering buying a home with rental income potential. However, the market seems so hot right now that I'm wondering if it's a good idea. Most 3 bed/2 bath houses are going for over $500K, only some have basements to rent out. I want to stay in DC, so would be paying increasing rent anyway. What are your thoughts on buying a property as primary residence and rent to tenants or Air BnB? Do you have maximum price or other criteria for your deal analyses?

Thanks!
Piper