All Forum Posts by: Shawn H.

When signing up with Cozy.co, can you put account in your LLC name?

Thanks Brandon for the info, helpful as always. For those that will result in a tax increase, leaves us in a tight time frame to do anything to lower our tax bill.

So, am I correct that, if we already itemize and are over the standard deduction, we don't gain anything, just lose the personal exemptions. So our taxes may possibly increase.

The rents are probably correct. On average they are probably around $350/mo. Rents in this town range from below $300 to $700 at the very most. Very few at $600-700, most between $500-$550. The 2 bd units are 600-650sf, the 1 bd units are 400sf, so they are small. I think the current owner is just throwing a high price out there. He didn't really advertise very well, just seeing if there is any interest maybe. The 7x rent is a joke, don't know where he came up with that. I do realize the appraisal would take into account the income as it would be considered commercial. The units are all on one lot. The area is fine, close to schools. The tenants are generally lower wage or single mom's. 

There is a local 9 unit property available, I would like some input on maximum purchase price.

9 units: 2 triplex, 1 duplex, 1 single unit. 7- 2bd, 1 ba, 2 -1 bd, 1 ba, all in one location

From the owner:

He says bank loans 7x rent in this market, that's the price range. So 7x36,300= $254,100 asking

Gross income: $36,300

Property Tax: $2455

My estimate on insurance: $2400-3000/yr

Utilities paid by tenant.

No property managers in this area.

The maximum purchase price I came up with is $163,000, before repairs. I've been in a couple units before. I know the flooring, appliances, waterheaters will need updated soon. The outside looks to be in good condition. I used 45% for expenses, cap ex etc. The owner has owned these for a long time. How do you come to an agreement when so far apart on prices? Let me know your thoughts, thanks. 

My main income is W-2 income, but we have rentals and some farm income. Last year I used my truck about 35% for rentals and 35% for the farm. I wasn't aware buy and hold can't use the Section 179. I am aware of the taxable income requirement. 

I do have a CPA, and I asked him the same question. He said that was only for 'new' vehicles. The way I understand it Section 179 is for new or used, over 6000# GVWR and the limit is $25,000 for a truck with a bed less than 6' in length. I believe the bonus depreciation is for new vehicles. I would like input from Bigger Pockets experts, so I know if I need to look for another CPA, or if I need to seek other avenues for reducing taxes.

If I purchase a 'used' truck (6000#+ GVWR, extended cab, short bed) this year, can I deduct the entire purchase amount on this years taxes?  Purchase cost will be less than $25,000. The vehicle will be used 75-100% for business for the next 5+ years. Will I have to recapture depreciation when I sell? Thanks

@Dan Williams Thanks for the tips & the link. 

@Jeff B. We have our criteria posted, seems like most don't read through most of it. Thanks for the idea to document screening results.