All Forum Posts by: Spencer Wetmore

@Alan Rohrer

I'm gad you understand my pain! I usually end up just saying I do taxes otherwise they just get really confused and keep asking tax questions anyways.

This response certainly helps and I will see if I can find a real estate specific tax professional. If you know of any in the area, feel free to pass their contact along.

Thank you Alan!

Hi - I have a general question on taxes for flips. I purchased a house with a partner in 2017 that we rehabbed and will be selling in 2018. There were a decent amount of costs incurred in FY17, but I'm not sure if these costs are capitalized into the property and then offset the gain upon sale or expense as incurred. My partner met with a tax professional who said we shouldn't be expensing anything in FY17, but this seems strange to me for items like mileage and other operating costs. What do you think?

Also, does anybody know a good real estate tax professional who has the capacity to take on another client this late in the game? I know it's ironic that I am a CPA in public accounting...but I don't do taxes!

Thank you!

I have a potential off-market commercial property deal in CT consisting of commercial garages, a multifamily house, and some subdivided buildable land. I don't have sufficient cash on hand for the 25% down payment using a conventional commercial loan, so I've been trying to get creative! I believe the asking price is below what the property will appraise for as it's in a good location with solid current cash flow (that still has potential to move upwards). 

My question is: Do any banks or commercial lenders loan on the appraised value rather than the purchase price? (ie. loan 75% of appraisal)

My thought is if the property can appraise for significantly above the purchase price, I can use that equity instead of cash down. I've called several banks who rejected me, so any suggestions or referrals would be greatly appreciated. 

Additionally, if anybody has other ideas, I'd love to hear.

Thanks!

Hi @Kathleen Callaghan, I'm currently house hacking in Cromwell and loving it! Great cash flow, great tenants, great town. Feel free to reach out if you have any questions about the area or want to talk through any potential properties.

Hi Everybody - 

I purchased a 4 family home in 2016 using an FHA loan and paid 1.75% up front PMI at closing. Does anybody know if and how I can deduct this amount? All I can find online is this is normally amortized over 84 months on Schedule A, but I'm not sure if this would be applied the same for an owner occupied rental.

Thank you!

Hi @Tyler Mikolajcik and @Kevin Flaherty,

Myself and two partners are looking for small SFR flips and recently began looking in the Plainville area. I'd love to connect in the near future to discuss the area and what you are focusing on.

I look forward to talking.

Spencer

@Thomas S.

Thanks for the replies everybody. You have motivated me to take action and draft up a rental agreement to have him start paying $800. I agree I need to treat this more as a business rather than a hobby. I will keep you updated as to the outcome of my discussion with the tenant.

Hi BP Community,

I am a new landlord and I need hep!

I purchased my first fourplex about 3 months ago. I inherited one long-standing tenant who was (and still is) paying well under market rent - probably $250 under market. He is a perfect tenant, so far he has paid on the 2nd of every month, takes out the trash, is rarely there, and never bothers anybody. 

Currently, I don't have any rental agreement set up with him nor do I have a security deposit. 

So...my question is, how do I approach him on increasing rent, setting up a rental agreement, and getting a security deposit? Do you think I should address all these items at once or separate over a couple weeks/months? Can I even increase his rent by $250 at once?

I really appreciate all the insight and advice you all have!

@Pat McCandless the meetup is really an informal networking-style event. I've only gone to the September meetup, but it was primarily introducing ourselves and then an open discussion to bring up questions, experiences, etc. I enjoyed it because I got to meet other investors and hopefully build future relationships. I encourage anybody in the area to at least stop by - I look forward to meeting you!

Hi Chris, welcome to BP!

I just went through my first house hacking experience and purchased a place in Cromwell, CT. So far it's been awesome and I strongly encourage you to continue evaluating properties and taking action. Although I'm not a professional investor yet, feel free to PM me and I can talk you through any of your questions. Also, there is a meetup this Wednesday 17th at the Wood n Tap in Rocky Hill. I strongly encourage you to attend - I know I'll be there!