All Forum Posts by: Yos W.

Hi Chris,

thanks for the link. 
how does it considered to be a fraud? I mean, we plan to pay the mortgage and not going to run off with their money..
plus, the reason for renting out first year is because our current residence is NOT ready to be put in market yet, we are still working on the kitchen and this will probably take 3-4 months as I'm a DIY-ers with fulltime job.

I will definitely disclose this to our lender, so that they will be aware..

this is our 2nd investment property.. umm.. well we liked it so  much we think of making it our primary now.. especially since the rental market is quite weak recently..

Tried searching but didn't come up...
we plan to buy a house for investment, but then think we make it our primary residence.(either immediately or wait 1-2 years)

I know that if it was the otherway around, it's against the law.. but how about my case? we applied for mortgage as investment, not primary and put down 25%.

Next would be: what if we rent it out for a year (and take full deductions on the cost associated with renting it out and depreciation), then after 1 year, move in and make it our primary residence? is this ok?
I know that if we do this, when we later sell after several years, those depreciation will be recaptured.. but how about the other costs I've deduct on the first year? does it need to be re-captured as well?

Thanks Bruno.. :)
We'll head to the bank tomorrow to get a heloc.. seemed that sooner or later I might need it.

We purchased our first rental property last summer and so far it's been what we expect it to be.. the rent covered the monthly mortgage with $200 positive cash flow. (we'll use this for fixes, etc).

We are thinking of getting a second property, but not sure whether we can get approved for another mortgage since it's only been a year and last year's tax rental income/loss showed loss (since it's the first year, taking into consideration the closing fee, transfer tax, etc).

I read around the forum and when I secured the loan for our 1st rental last year, the bank officer said I will need at least 2 years of proof to let them consider the rental income as "income". 

Our primary home is free of mortgage.. we could get a HELOC..
Our equity in the 1st rental home is 50-60%.

what's the pro and con of getting a HELOC from our Primary home to finance the 2nd rental?
with the 50-60% equity we have on the 1st rental, will the bank let me apply a HELOC on that one as well? 

I was thinking of still applying for conventional mortgage before going HELOC, but I doubt they will approve since I still have 40-50% mortgage on the 1st rental..

thoughts, anyone?

Huff.. finally get to login here again..

Thanks for all the help.. seemed that I think I get an idea to separate between the two in my quickbooks. :)

Funny, the moment I post this 10 days ago, the washer broke, drain clogged, etc2..
and all goes to the business expense..

 

:) I know some will say ask my CPA.. which I will, and I've been reading about the safe harbor rules.. *and still got confused*..

I guess my main concern would be repairs/improvements made by myself.. I've been contemplating whether its better to hire someone or do it myself in terms of deductions on the expenses.

As a new landlord, I wanted to ask the veterans on tax deductions for expenses I incur on the rental property.

things like: Bathroom Remodeling expenses made by me.. (or by contractor), plumbing expenses for unclogging sewer lines, replacing light fixtures due to the broken fixtures, purchasing a new washer/dryer/other appliances to replace the broken old ones.. hiring a company to service the Boiler/AC before the winter/summer, hiring a handyman to do a little odd-jobs.. and preventive maintenance of the house such as gutter replacement, brick/mortar pointing, etc2..

I do keep all the receipts of them.. but my real question is: which one is deductible as a one time deal, and which one is spread out as "depreciation" - 5,10,? years...

Anthony, thanks for the input! :) No eviction, and seemed that they are paying their dues/obligations from the BK. In all fairness, their house in Socal worth double the house we're renting.

Tyson, I'll check that out.. it's obvious that I'm new to the landording.. 

Alan, they file ch 13 due to the enrollment to HAMP program, they are afraid of losing their house. There's a class action against the lender and they won the settlement, but the BK is there.. tenant screen came back as declined, since I think BK within the past 10 years is an auto decline.
They are honest with me from the start, which is a plus but I'm having a hardtime explaining to my spouse about this. She simply don't understand why BK exist in the first place. 

A family of 4, Moving from out of town. they filed a chapter 13 in 2012 to keep their house in socal. due to recent job they had to move, will have a contract job for a year at local college. current credit score is 790. my rent is on par with zillow estimate.. 

income wise, they made the 3x gross multiplier. (I'd say 5x if both combined).

Both have higher education, previous landlords are the college housings...

rent or pass? I feel that they won't have problem paying the rent, but with utilities and all, plus food, etc.. I'm not sure.

If I'm in their seat, I would go for lower rent, but everyone is different..
Should I care about previous ch.13?

Forgot to add that Condo fee is 150 a month.