All Forum Posts by: Shelley Greene

Hi,

I have a SFH for rent near JBLM - Joint Base Lewis Mcchord in WA, and I'm looking for the contact information for a housing coordinator on base. I was told that there is a website the base has for off-base housing, but my google searching is failing me!

If you know the place I'm looking for and are willing to share contact info, I would appreciate it so much!

Thanks,
Shelley

I'm not an expert at all, but one thing that could help you is to check out Brandon Hall's blog about BARRRR strategy. After you move out, but before you start fixing things, adding the A, which is 'advertise' can possibly help you qualify both units as rental and then be able to use the tax advantages the others have listed, for both units. Sorry I don't have a link to the page. If you can't find it, message me and I'll see if I can.

@Caleb Heimsoth 

Thank you for this perspective, as it was the one I worried more about. Did you do much research about how to do your bookkeeping and what you would need to provide for the CPA, or were they able to help you with that as part of the filing and preparing? With just one rental and one flip right now, I'm definitely not in the big leagues yet, but I worry that I'd somehow miss out on something I should be doing if I only have a preparer rather than an advisor. I plan to have at least 10 SFH rentals in the next 5 years.

@Brandon Hall

Probably the first thing I learned when I started digging for tax and CPA information was from one of the BP podcasts you did with Brandon and Josh (which of course was both hilarious and information-packed). Thank you for replying to little ole' me! I certainly know that I need good advice and though it would be convenient to always be able to ask questions and get quick answers, I'm not sure that it's reasonable for me at this point to go monthly. The one rental I currently have would just cover my monthly cost. I suppose that if I make good use of what I'm paying for, though, I would be likely to be able to grow my investments that much more quickly.

@Jana Cain

Sound advice! Absolutely yes to all the qualities you said. I've thus far always done my own taxes, and my only experience with CPAs is watching how my parents struggle with frustration at the hourly expense for any questions they have, difficulty of communication, and all the documents they have to gather, for their CPA who does taxes for them and my dad's single-person small business. Perhaps that's also something that has me leaning toward a monthly strategy.

Hi BP!

I'm a newbie, and after a year researching, finally jumped in! I am so very thankful for this community and all the knowledge I've gained from  all of you! Now I'm needing help deciding which type of CPA service I should be seeking, at this point in my investment career.

My story: To jump-start my real estate investing, I moved in with my parents, renovated what had been my primary residence, and turned it into a rental in June. In December, I bought a house at auction that I am currently renovating to flip. Both properties are in Tacoma, WA. I've read a beginner's amount on tax implications with rental properties, so I've heard the vocabulary, but I don't have a working knowledge of it. I know next to nothing about tax implications for flips. In the long term, the bulk of my investments will be rental properties, with the occasional flip to boost my ability to purchase more rentals. As I gain more in passive income, or if I find flipping to work well for me, I will be cutting back hours at my job.

My question: Is it more beneficial for me right now to go with a CPA who charges for individual services or one who has monthly plans?

My thoughts: I'm leaning toward a monthly plan, so that I feel free to ask questions anytime, without worrying about the cost, but currently having only one rental bringing in a monthly income, it seems a steep price in relation to my real estate investment income.

In case the question is too broad, here are the questions I know I need help with:

Flip-

-What do I need to do between now and selling to pay the lowest taxes I can? Are there things I should do differently with future flips?

-What do I need to know about tax implications of a flip that as a newbie I probably don't know? (What should I be asking that I don't know to ask?)

-How do 1099's work, when I pay someone for a service who doesn't have a company (or is there a better way to do this)?

-Actually doing the taxes, when tax year 2018 comes

Rental- I probably could figure this one out on my own, but lack confidence.

-Tax implications for expenses from the renovation (how to categorize if it was improvements or upkeep, and how each of those behave in the tax code)

-I read something about needing to qualify as a real estate professional for some of the tax benefits. Explain that to me.

-Actually doing the taxes, for 2017 and on

Thanks for your thoughts!

Shelley

Hi Jonathan,

I'm not sure if they do multi-family units, but I'm very pleased with Renee Jean of Crown Rentals. I've had my SFH with them since only June, but on the recommendation of a friend who had worked with Renee for a couple years and couldn't say enough good things. They work in Pierce and Thurston counties

http://crown-rentals.com/

Shelley

How specific are you looking for? What I'm reading says federal way stations will use existing stations, and Tacoma will go along 19th avenue. The map is clickable and gives bits of information. http://soundtransit3.org/map#map

I'm not sure if Ruth will see your question, so here's an answer.. meetup.com and search for REI Lakewood ram

I wonder what building code a property has to have in order to be a residential care home. I can see this being an amazing home for adults with dementia/Alzheimer's, with the décor and the area it's in (very nice part of town). The décor for the residents and the nice area of town for the family members having to put their loved ones into a care facility.

I have to apologize, I didn't even look at your link before my first response. I didn't think I knew enough yet to contribute. But, I have some questions/concerns after looking at it:

- The report shows a $0 budget for initial repairs. Looking at this redfin listing (admittedly old), the property condition is listed as "poor." That would seem to indicate needing some kind of repairs right away. https://www.redfin.com/WA/Tacoma/5420-S-L-St-98408/home/2970534

- Also from that redfin listing, it looks like the property is 2, 1 bed 1 bath, and 1, 2 bed 1 bath. To have the rental income listed on your analysis report, each unit would have to be rented at over $900/month. That seems high to me, but I haven't done a lot of research into what individual units go for in that immediate area.

-Lastly, is a 10% Cash on Cash return strong enough for you? It certainly could be. I think people who've been doing this a long time look for 12-15%.

I would suggest paying close attention to the inspection, especially with the big ticket items that Brandon talks about in that webinar I mentioned in the last post. If anything comes back a concern, re-run your numbers with extra repair costs, and with dropping your offer price, until you get back to numbers that satisfy you. Keep in mind that (again, according to redfin) this property last sold for $114k, only 3 years ago.

Shelley

Hi James,

I'm a newbie, but the things you're talking about are all the same things I've been reading about, so it sounds like you're on the right track. When I feel educated enough, I'll also be looking to buy and hold multi-family properties in Tacoma. Keep me in mind when you start looking for partnerships!

@Brandon Turner just did a great webinar this week on investing in older rental properties. I'd check that out as a starting place for concerns you have about maintenance:

https://www.biggerpockets.com/proreplay

I hope the inspection goes well for you!

Shelley