All Forum Posts by: Richard C.

Chances are good you have paid for that house for her several times over.

If she has 150 rentals, she knows how lucky she is to have a tenant like you.

I would ask for the carpet.

File a request under whatever PA calls its Freedom of Information Act. The allowance sheet is pretty clearly a public record. They will charge you for whatever the cost of the photocopy is.

At some point, "Do you list on Zillow?" , will become a standard question prospective sellers ask agents before signing a listing agreement.

The current realtor business model is predicated in controlling access to information. That cat is out of the bag. And so the business model must and will change, whether realtors like it or not.

My opinion is that the model should change from information gatekeeper toprofessional service. Show me why you are worth the money, and I will pay it. I still use travel agents from time to time, because it is much easier and only a little more expensive.

And that is the key, of course, and the biggest threat to the current realtors. The new model that is coming will not support the current commission structure. Agents have had a good run. Protection by the state for their privileged position, but with a really low barrier to entry. In my state, you aretalking about less than three weeks of training and a ttotal cost in 3 figures, to get an agent license. There was always going to be a limit to how long that level of training and investment (less than that required to be an LNA in a nursing home for $9 an hour) could result in a six-figure profession.

I pointed you to several extremely useful sources of information. Suggestedthat working on a habitat house would teach you something about construction and allow you to meet tradesmen. Pointed you to an inexpensive RE linlicensing class and explained that that was the best way to learn the business and get access to good comps. Pointed you to entirely FREE seminars at the NH Housing Finance Authority that would explain the basics of real estate and financing to you. Explained you to improve your credit score so that you could qualify for financing. Other people have explained basic real estate and business concepts, patiently and repeatedly.

Tell me what was wrong about any of that?

Your problem seems to be that you want to be told the magic shortcut to success in real estate, without having to learn the basics or put in any work. That magic shortcut does not exist.

And yes, anyone telling you to just automatically add 3% as a rehab cost is an idiot.

Derek, a lot of people have given you a lot of good advice over the past few weeks. Most of which amounted to telling you to get more experience, some money and a job.

Anyone telling you to just add a fixed percentage for rehab costs is an idiot. Period.

Work on a habitat house. Read articles with titles like, "What you need to know to buy your first home," and not titles like, "How to make it in real estate with no money down!!!"

This, except for the deposit part. Don't think that would fly here, if challanged, even if it would fly in KY. Dirt isn't damage.

But the finding a good cleaning person, absolutely. I actually had a cleaning person clean my PERSONAL residence, that my family and regular cleaning lady keep pretty spotless, before turning it into a rental. We keep things clean, but sure don't scrub the floor UNDER the baseboard radiators with a toothbrush-sized brush, like she did. And as I recall, it was something like $125.

Michael clearly knows this stuff and I encourage you to listen to him.

Here's how I look at rules and regulations, generally. If you want to have a general idea (not something you can go to the bank or court with, but a general idea) of whether what you are doing is OK or not, do this: Consider the intent of the rule.

Simplifying a bit, I would say the intent of Section 1031 is to treat the multiple, sequentially held properties as one "investment." To recognize that just because you switched from one property of a particular type to another property of a particular type, you have not ceased your investment activity and actually realized your gain.

Flipping doesn't qualify.

Again, if Michael says I'm crazy, listen to him. But that's how I look at it.

That's the funny thing about "comps." The properties have to be ...

...comparable.

You should talk to a tax lawyer or CPA of course. But I don't think so. Unless you owned the flip for a long time before flipping it. If you buy a place, fix it up in a few weeks/months, and sell it, that's inventory.

Good discussion, everyone. Thanks for participating.