All Forum Posts by: Shannon Conklin

I've been working with an accountant for a couple years but when we purchased our first investment property, it became clear that he's not the guy for the job. He's got limited experience with real estate and I just don't know if he's giving us the right advice. Anyone have a good Tax Pro in NE Ohio that they can recommend. We're not a huge business so I'd like someone who is reasonably priced. Glad to pay for their time and expertise but don't want to get over-charged either. Seems like there's a big range depending on who you ask. 

Thanks @Alex Olson. Yes, we plan to grow our portfolio. Unfortunately we did not set up the 1031 exchange prior to selling the house. Newbie mistake! 

Forgot to mention that we're in Ohio and the property is in Ohio. 

Hi, this is my first time posting. I have a tax question. My husband and I got lucky with our first property. We bought a home for $120k with the contingency that the woman who lived there could stay (divorce, but the husband wanted the kids to stay in their home/school). We worked out the rent. All good. Replaced the roof, started doing repairs in the areas we needed to. Then the rent stopped - excuses, excuses. We eventually evicted her and since single families are not in our plan, we renovated and sold for our asking price of $250k 18 months after we purchased the property. My husband did the bulk of the renovations but took no pay for his time during the renovation since we were strapped for cash and figured he'd just take owners draw for his time investment (LLC) after the sale. Accountant (who I'm not sure has much real-estate experience) says he cannot take money out of the sale of the house and because it was a rental that we then renovated and sold, we can not use a 1031 exchange and put the money into a new property. So, here's what I'd like to know...

- does anyone have experience with this type of property (rental that was then flipped and sold in the 18-month-ish time period)

- How do we avoid capitol gains? 1031 exchange?

- how do we recapture the "salary/pay" the sole owner of the llc should have been paid for his labor on the property?

Hey Alex

It looks to me like you did your due diligence w respect to screening. Your also new which means you wouldnt have the landlords 6 th sense that some of these investors expect you to have. It looks like you just got the bad BAD apple.You mentioned dealing with this for "quite some time" but in the scheme of things it will be a blink of an eye in your investor career. You will also have a killer warning story for new investors like myself. Maybe make living there a little more uncomfortable for her as she has for you.Im sure some of the more experienced landlords know ways. Couple that with a cash out deal and hopefully she bails as soon as the courts open back up. If she has a good credit rating , shes probably not stupid and will be aware of her limits to abuse you guys.

Hang in there. Your next tennant will probably be awesome.

I think its interesting how the extreme dire pessimistic forecasts and predictions become self fulfillng prophesies .

Nobody is totally aware of what federal programs will be available as they are being added every few days. The first signs of good news with the virus will make quick changes to the market and the cleanup begins.I think that we are just inundated with negatives right now. This is actually the worst part or phase with respect to paranoia of the bad things that " could be"

If I had been on a island, came off of it today and saw the headlines I would think this was the black plague or The walking dead virus.........Its not

I will refer back to the first line of my post.

some positivity will actually be contagious.

Hi Adam

I am married with a 16 year old son and our home is approx 20 min from the property. I dont know how i would go about changing my residence. thanks for the vote of confidence. So far nobody has said move on lol

The idea of putting down a 20-30k cash offer and just figuring out where to get the rehab loan later may have been an option a month ago but now that looks more crazy with every daily news cycle.

Hi Odie

We are in ohio.

Hi Nicholas

No , we would not live in the property. this would be a rehab,refi and rental property for us. We do have the cash to purchase but the rehab money is the catch

HI Mason. The ARV on this property would be between 150-160k