All Forum Posts by: Rawn Wilson

I buy a house for 25k cash. Put in 50k cash. Appraised for 130k and refinance for 97.5k. What value do (or can I use) for my initial depreciation number? Obviously I would like to use the larger number so my gains are less when I sell in the future. Am I forced to use the cash price of 25k?

Anthony - We did.  I am starting to look at a date in March now.  I was thinking around noon on the 16th.  The last meeting was more of a meet and greet, but I would like to start to focus on topics that would interest/help others in the real estate field.  If you listen to the BP podcast, you may be familiar with the "
Deep Dive".  I find those interesting and they always spark a lot of questions.  I think we should do that.  If you have a deal you have done recently, come prepared to share how you found it, what your strategy was, how much you paid, how you paid for it, and the final outcome.  All stories welcome, good and bad.

Everyone chime in that can attend.  Let's plan on Bakfish again.  Tables were plenty big.

Sitting at a table outside. I’ve got a blue shirt on. It’s nice outside here, bit windy, but refreshing. Come on over, have a refreshment, and share ideas.

Look forward to meeting everyone.  I will shoot to get there a bit early and grab a good spot.  Ill post here exactly where in Bakfish I am.  Maybe I can raise a small BP flag! Bring some cards (or a pen and napkin) and get ready to introduce yourself and share ideas.  We can use this initial meeting to see what kind of material everyone is looking for and guide our future meetings around those subjects.

Forgot to add, that was a 1300sq ft house and included a complete leveling of the entire house also.  Took an entire day on the first visit.  On the second visit, I actually cut out the entire floor of a bathroom so they could access the other issues that needed fixing.  Turns out the tub had been leaking for years and rotted out the subfloor and joists beneath it.  I was wondering why the tub never fell through the floor.

I bought a pier and beam house build in 1965 in Pearland, TX.  It was obvious it needed some work underneath, but their was no way to get under the house from the sides.  I just spent an initial $3800 to cut 2 holes through original hardwood floors to access crawl space and replaced 2 large 16' beams and 8 12' joists.  While they were under there, they identified more issues not included in the original scope of work.  I paid an additional $1300 for another 3 16' beams and 8 12' joists to be replaced or reinforced. I have done many slab levels for about $100/pier and this amount took me by surprise (I got 3 quotes and this was the best one even with second cost).  Still the deal was good enough to absorb this costs.  Good luck.

I know the answer is always "Get a good real estate tax professional".  BUT

I purchased a mixed-used property in October 2018.  It is one residential lot with a 3/2 house that also has 2 apartments in the back.  On the same residential lot are 2 commercial auto shops (grandfatherd as commercial on residential lot).

I started a rehab of the apartments and house immediately and have had a tenant in one of the apartments the entire time.  The shops remain vacant.

My question is....How do I treat the costs associated with the rehab for tax purposes?  It has been around 30K in materials and labor.  None of the rehab were large depreciable repairs like a roof, etc.

Since a portion of the property has been occupied, I understand that may change things to my benefit.  Can these cost be claimed as straight itemized repair expenses to take a net loss?

Don't think we will ever get everyone settled on a same date and time.  If most people agree the weekend is better, how does Saturday the 23rd 2-4 at Backfish Brewery in Pearland? They have some outdoor space also.  This coming weekend is opening weekend for Pearland Girls Softball, an I cant miss that. LOL!

Sorry guys, military duties have me tied up till Feb 10th.  I'm still wanting to meet local real estate people.  I was looking at planning something for Feb 13th or 15th in the evening or possible quick lunch meet up.  I will solidify the date, time, and place next week.  Stay tuned.

Would a weekday evening around 6 or a weekend work better? I have met a local investor here who owns a business we can possibly use. Let me look into it and set something up.