All Forum Posts by: Sean Williams

@Jay Leisten I'll keep you in the loop if it's still around. I am not one to grossly underestimate repair costs like most wholesalers, which is frustrating; in fact sometimes I am conservative to a fault. Someone with the right contacts that has experience could probably get it done cheaper to get it rent ready.

Originally posted by @Jordan Moorhead:

$750 for a two bedroom correct?

 Yessir, its feasible...I have a 2 bedroom rental just a few minutes away in the same area thats bringing in $745/month and its nothing special. Rentometer has the median price at $733

Single family shotgun home in popular rental area near Churchill Downs. Approx 800-900 sqft, currently setup as a 1 bedroom but the floorplan could easily be arranged to cater for a 2 bedroom setup given the amount of total sqft. Lots of original charm in the trim work, as well as tall ceilings (9ft+). Decent size backyard and located just off I-254.

Needs $25k-$35k worth of work depending on how frisky you want to get...it's essentially an empty shell at the moment. Needs kitchen, bathroom, flooring, drywall work and fresh paint throughout. Other 2 bedroom homes are selling upwards of $70k+ depending on condition nearby. Likely not a good candidate for a flip, but could be a great BRRR property for a solid cash flowing, long-term rental.

Asking $28,700 cash

ARV $65-70k+

Rents $750 +/- (would definitely be higher for a section 8 tenant)

Click Here for Photos

Call/text me directly @ 502-252-1298

@Brenton Way I've owned the property for 2 years now. I am a practicing licensed broker with a decent size business (LLC #1), however this rental property is within (LLC #2) which has a couple other rentals in it as well...so when you say "real estate professional" I am a little unclear if my "day job" as a broker would give me this title since this property pertains to LLC #2 and is my "rental job" which is passive income, not active.

We've rented the property for 2 years as originally intended, but do the fire and renovations, plus the market being higher than I ever anticipated in this area, I want to get out what I can and roll the money into a better location via a 1031 tax exchange.

Thanks again for all your input!!

@Ashish Acharya and @Brenton Way Really appreciate your alls input on this, this is something I was not aware of that I could potentially utilize. When I mentioned it to my CPA he went more of the route of capitalizing/depreciation so I'll explore both options with him.

I am considering selling the property once this rehab is complete, so depreciating may be useless if a portion of it is going to be recaptured immediately anyways. Would there be a scenario where one strategy makes more sense than the other if selling immediately vs. renting?

I am in the process of renovating a rental property through an insurance claim after a recent fire. Appliances are not included in the insurance claim of what's being covered by insurance since that falls under "personal" items.

I am planning to buy a new kitchen set with the Black Friday deals coming up; however before I did so I wanted to see if anyone had any recommended tax strategies in terms of categorizing them as a repair vs. cap ex, or being able to possible deduct the expense or depreciate them? Any thoughts are greatly appreciated!

Tood Thornton for online, HomeServices for in-person.

@Chris V. windows were just installed and drywall hung. I'll share the final numbers once it's complete in a few weeks. Considering selling it once it's completely finished since I was pretty much already getting the market max on rent before this all happened.

Don't know the area or comps but that is code word for being overpriced. Good news is that number of showings indicates your in the ballpark...a $5-$10k price reduction might be enough to push someone over the edge.

@Sara Peak I am actually glad you commented on this!

Seller financing is not an option at this time but I do have a few updates...

New price is $599k and we recently re-rented 2 of the units at $1,350/month. We are working to raise the other 2 but these have been long-term tenants. Once we raise the other 2 units we'll be at $64,800 in yearly gross rents.