All Forum Posts by: Ron P.

@Jon Holdman 

Thanks for your input.  I do intend to get with my accountant.  The more I understand beforehand helps me communicate better with my CPA.  I don't take BP comments as legal or tax advice.

I misspoke, it's more of a PUD than condo, it's on its own lot, although I believe your comments still apply since it's on leased land.

One additional question if you don't mind, you say "All money spent prior to having the property rent ready adds to your basis, then depreciation starts when it's rent ready.", does "All money" include things like utilities, HOA dues, property taxes, land lease pmts, etc ... things that would normally be expensed post rent ready?

I have a rental condo on leased land that I purchased and fixed up in 2014.  Do I depreciate the full purchase price + rehab costs?  Since I don't own the land there is no way to split the purchase price between land and structure.

 According to the document you referenced disclosure only applies if you are " ... performing acts for which as real license is required" (B & P Code 10140.6.(a)).  In CA a license is not required when buying directly from seller, therefore no disclosure is required.  Do you read it differently?

1 mil x 12% = $120k/yr is not bad, why do you say 5 mil is needed?

The reason is obvious, they can't get real jobs with that liberal arts degree so they move where there's the highest density of restaurants, the big city, to be waiters.

All you college students that have posted considering quitting college to pursue RE investing take note of this thread ... THINGS CHANGE ... best to finish college thus giving yourself as many options as possible.  Finish that BS/BA, MBA or Law degree ... you never know!