All Forum Posts by: Ricky Stafford

They don’t have any keys yet.

Wow…didn’t expect this much good info.

I’m doing everything remotely and through Zillow. We all already “signed” (our digitally signed names are there) but there hasn’t been a payment made yet. 

If for some reason they never paid and I have held the property for nearly a month for them, do I have any legal recourse for all this wasted time?

What if tenant signs lease, the lease says first month’s rent is due at signing, and tenant ends up paying at the last minute, or does not pay at all?

Let’s say the wording on the lease says “First month’s Monthly Rent is due on upon executing this Lease”.

In general, what is the grace period for “due upon executing this lease”? Is the lease automatically void if it’s not paid on the same day or legally what would happen? If they didn’t pay at all would they still have legal right to move in? I’m assuming not.

If they end up paying last minute that’s a bit of a warning sign to me and I almost would just want to avoid it all together.

A home was purchased in my parent's name a few years back in 2015. I have been the one living and paying on the house since that time and may end up selling it this year. There will be a gain from the sale. The problem with selling now is that I have not technically "owned" the home according to property records. 

They could transfer it to me at any time as the house is paid off, but in case they would be the ones instead of me to be able to claim any tax-free capital gains, we are hesitant on doing so.

Adding to the complication is the fact that I have claimed depreciation on my tax returns because I rent out 1/3rd of the property. I assume if we did leave things as is and we sold the house while still in their name that it wouldn't make sense to add depreciation recapture on their tax returns (even though it would be favorable to the IRS since they're in a higher bracket, I'm sure this wouldn't be acceptable). This is the main thing preventing me from just leaving it in their names and selling it that way since I don't think they'd be able to report the recaptured depreciation as I was the one who reported the depreciation on my returns.

Any advice appreciated.

Has anyone been successful finding conventional financing with only Airbnb income on your tax returns?

I currently have two rentals and am looking to expand. I quit my job a long time ago and don't really want to have to go back. From what I've read and through my brief interaction with a lender, the rentals need to be traditional and I need to provide a copy of the lease.

I know Quicken Loans allows refinancing through Airbnb income alone but is the rest of the industry just too far behind? I could probably technically count it as business income but I don't file a Schedule C or anything and I'm not sure if all of my deductions like depreciation would count as "expenses" in this case. 

Just hoping to get some thoughts and ideas.

Yes, it was certainly a gift. Thanks for the tip @Lance Lvovsky Any other ideas on how I should go about determining a cost basis when there's basically nothing to go by except perhaps performing a present value calculation based on inflation?

Thanks for the reply. Right, I haven’t claimed depreciation thus far. My parents are still alive so I guess it would be considered a gift and if I’ve read correctly, their cost basis gets transferred to me except we have no idea what exactly that is.

Parents built a house in the 80s and just built as they went - no record of what they paid. Parents deeded over property my sister and I in 2013. I renovated and started renting out 33% of the house in 2014. I have thus far not claimed any depreciation on this property but don't foresee ever selling it so that's not really an issue.

From what I've read, my cost basis is their cost basis which is the lesser of fair market value or cost + improvements. Since there's no way to know cost + improvements as they never kept a record, what do I do? I'm fine with with a super conservative estimate since something is obviously better than nothing, but don't even know where I should start?

I'm going to go out on a limb and say that Nashville is probably is not as vigilant about enforcement than Asheville currently is. Our fine is $500/day (up from $100) and they've issued 4X more permits per month this year than last year.

But, more importantly, why not just look for areas where plenty of permits are available? For nearly every address I plugged in, at least one permit was available when I searched. http://maps.nashville.gov/strp

In Asheville, about 20/80% of citations issued came from neighbors and the city task force respectively. Apparently they've issued ~700 citations out of the ~1000 STRs that exist. So, in Asheville, your chance of receiving a citation due to a neighbor's complaint is about 14%. I'd imagine that's going to be pretty similar anywhere else. Nashville recently set up a complaint hotline a few months ago so they're obviously getting more serious. Then again, apparently one out of every two STRs in Nashville are operating permit-free. It looks like they're aware of the "issue" but not doing nearly as much as other cities to actually enforce it. Personally, I'd be much more willing to operating without a permit in Nashville than Asheville (but again - you should be able to get a permit). Take what you will from all of this.

I'm not too sure why it wasn't done that way from the start - perhaps the lender wouldn't allow it since I still probably wouldn't qualify as a borrower?