All Forum Posts by: Sergio Rodriguez

I received an update from my accountant and it seems the timeline of events did provided some clarification and reduced my taxes by $6k from the original $16k. 

I was advised that the depreciation taken during the years it was rented is not excluded from the exemption. 
True? 

Hello Friends, 

I purchased a house in 2017 and lived there for 4 years as my homestead's primary residence. Following that we moved out and turned it into a short-term vacation rental around April 2021 and the last year before we sold the house in December 2022, we leased it out as a long-term rental for 1-year. My tax specialist is telling me I owe about $16k in capital gains tax because I had converted the house for commercial use. However, the house was still under our name and not converted into our LLC.

Overall, I expected to pay no capital gains tax seeing as how we lived in the house 4 years out of the +5 years I owned it. I reviewed the IRS publication 523 for additional guidance but it's not clear to me (non-tax fellow) if I am exempted from capital gains. Any guidance will help!

Timeline of events: 

2017 March - Purchased house as the primary residence

2021 May - House used as Airbnb

2022 November - 1-year Lease Expired 

2022 Dec - Sold House

BP Forum,

This question pertains to deducting my home renovations for renting a room and renting the house a year from now. 

I live in a 1300 square foot, 3 bed, 2 bath house. I moved in March 2017 and have updated all the flooring, all the windows, painted, replaced trim, adding gutters, rehabbed the guest bathroom and there’s more to come over time. 

I know that I can deduct the guest bedroom and guest bathroom since I have a tenant renting the room. But, can I deduct all other update/rehab expenses if I choose to rent the house in 2019, assumingg costs were incurred in 2017 and 2018. 

Thanks all! 

Sergio 

Tony Wooldridge thanks for the advice! I have considered working with a WS but have not made the effort to search for one. I'd much rather do it myself and, as you said, use a few investor real estate agents that I personally know. I'd like to have the confidence before going up and asking them myself. I myself am looking to flips at least two homes by the end of this year. One at a time but I'm excited to have my goals and plans laid out to take action. Woohoo! Good luck to you and your goals!

Hi All, 

So as part of my strategy starting out I am looking for a few fix-and-flips to build up cash to purchase future multifamily homes for passive income. I like most of you have a full time job and unfortunately cannot spend my day looking for homes online with great potential to flip. I live in the DFW area and there are 100s of investors in the area so competition is heated. 

I'd like to ask a few RE agents I have in my contact book to help me look for great deals with a few requirements (criteria) that I have for the search. My approach: I want to inform a few agents about my search and if they find a great deal for me and I agree to move forward, I will use that particular agent that found the deal to buy and re-sale the property.

Is this a common approach to finding homes? 

Thanks,

Sergio Rodriguez

@Brian Adams - Great story, thanks for sharing. In regards to your analysis of the NOI...

"When I first started analyzing the deal and before my offer was accepted, the trailing NOI (net operating income) was trending in an upward direction."

What is usually your first step in analyzing the history of a property and what factors do you look at to spot trends that indicate an upward (or downward) trend for the property in terms of the properties net worth or rental income? Also, what resources would you recommend using for analysis? I am looking for a more efficient and reliable method to attack my analysis.

Thanks!

Hi Everyone, I'm searching for a home to settle in before buying more homes to hold and lease. This will be my first home and I'd like to turn it into a rental and upgrade later as I progress with my REI journey. As for my goal, I'd like to buy at least 4 homes in the next year (optimistic?) in and around Fort Worth. I'd like to know, in your opinion and experience, what are the best cities and zip codes to find rentals in the $125k-$190k price range. I'm interested in SFH and small MFH rentals. A few cities I have considered are Saginaw, Haltom City, Watauga, Benbrook, Hurst, south Fort Worth closer to I-20. What do you think? Thanks!

@Clayton Plank @Justin Fox that's excellent! That's more or less what I was thinking too. I'm sure there are people looking for rentals year round but the hike is in this time frame. 

Hi BP Friends!

I'd like to get your input on the best time during the year to put your house up for rent. What season have you had your best success clinching a renter?  

Thanks!

Sergio 

Hello all,

I'd like you opinion on a lot in Fort Worth, TX, 76116. So there is a townhouse for sale for $115,000, 2 bed 2.5 bath. It has potential to say the least. The townhouse is connected to maybe a dozen others and it is a gated area. There is also an HOA and the community is really close. All this sounds great right? Well down the street on the same block is an apartment complex that is very questionable. Crime rate is very high in this area solely because of this apartment complex as well. The rest of the neighborhood is fairly descent and the location of the home isn't far from restaurants, stores, work, and entertainment.

After much thought I declined to give an offer because of the neighboring apartment complex.

So my question is three fold. What are other things I can do to learn more about the area, perhaps to see if there are future plans in store for that complex? Would you do the same thing and just politely decline to make an offer? What are some characteristics of a good neighborhood and what are your limitations?

Thank you,

Sergio