All Forum Posts by: Richard Brown

I have a place in Little Rock that I pay $1220 a month for the mortgage, and I still owe 25 years on it. Property Manager says I can get at least $1900 a month in rent on the open market and $1770 going Section 8 route. I want to leave the property to my kid. House was built in 1995 so I am thinking that I will need a roof for it soon and central heating/cooling is six years old. I could actually sell the property now for over 300K right now.

I am flying there to get a new refrigerator, change the locks, and get new remotes for my garage door plus meet the Property Manager. Here are a couple of questions I have.

Am I correct in thinking that you officially have Rental Property when you sign up with a property manager?
Can the time you spend learning about Rental Property count as managing your rental property?
How would I come up with basis to depreciate?
What else is deductible from rental income?

Is it $1220 mortgage only, or with Escrow ?
It almost look like you a little or negative cash flow and look at tax benefit to justify keeping it.
I don't think that's a good idea.

To keep in mind as well, you don't know what your kids what to do or will do with the house. So if it was your primary, you may be better cashing out now and tax free.

With Escrow

0 Votes

Little Rock, Arkansas

Quote from @Basit Siddiqi:

Your basis in the property is purchase price plus improvements.

Would that include improvements completed prior to the property being put up for rent?

0 Votes

Little Rock, Arkansas

I am flying there to get a new refrigerator, change the locks, and get new remotes for my garage door plus meet the Property Manager. Here are a couple of questions I have.

Am I correct in thinking that you officially have Rental Property when you sign up with a property manager?
Can the time you spend learning about Rental Property count as managing your rental property?
How would I come up with basis to depreciate?
What else is deductible from rental income?

1 Vote

Little Rock, Arkansas

All Forum Posts by: Richard Brown

Richard Brown has started 1 posts and replied 3 times.

Post: Just starting out need help and info

Post: Just starting out need help and info

Post: Just starting out need help and info