All Forum Posts by: Teri Feeney Styers

thank you @Benjamin Timmins. First of all "he" is a "she" and as I explained I was just seeing if someone knew the answer now as opposed to waiting to speak with my CPA. I haven't seen an answer to this specific scenario in the hour or so I spent trying to research it. And @Al Wilson- it was a legitimate question - and one I thought other investors might be interested in hearing the answer to. 

So I am already partnering with my SDRIRA on a flip - so I know how it works when investing. And I'm sure on Monday my accountant and my custodian could answer this question. But there are so many of you out there who can give me the answer sooner and I am not always patient... so here is the scenario: We are looking at purchasing a building lot to build our personal, primary residence. The lot is large enough and zoned appropriately to where we could build a second "cottage" to use as rental income. If we buy the lot and pay for the "main house" ourselves, can I use my Roth $$ to construct the cottage? Or does the Roth have to buy a percentage of the land too? And since we will be living next door, does this flunk the arms length test? Once we buy, build, sell current home, etc. there won't be a mortgage involved -so I don't have to worry about that portion... 

top bar "tools" there is a drop down menu - depends on what type of evaluation you are doing (flip vs. rental, etc.) Next time you post you should not put your name as the topic - put a question and your area of the country if the question is specific as to North Carolina. 

@Ian Irvinedo you have a Caliber Mortgage in your area? They have some interesting products for investors...

@Linda WeygantI record liens on properties all the time (HOA manager). @Drew Feinis correct that a few details are needed - and possibly a few steps to notify the party of what you are about to do, why, and how to prevent it. But the process isn't difficult. In my county it only costs $11 (always cash) and then another $11 to remove. And the documents have to be notarized prior to filing. 

@Jeremy Robinsonit sounds like you also need to get psyched about overall cash management to work it to your best advantage. There is a fairly new podcast from Paula Pant and Jay (somebody) called M.O.N.E.Y. - you should listen to those. Maybe instead of a townhouse a duplex? Sounds like @Mike Gallaghercan help you with this unless you already have a Realtor working for you. Hey @Douglas Larson- we haven't chatted in awhile but my "tiny house apartment" thing worked well. The buyer is using it as an AirBnB and renting to traveling nurses at 2-3 times what normal rent would be... 

yes - get pre-qualified. No point in looking at homes you can't afford. It would be a waste of time for the Realtor and the sellers. It doesn't cost anything and is a good learning experience. 

@Brandon TurnerI just paid a CPA who specializes in real estate $2000 for consulting. I currently have a partnership. He immediately recommended that I keep the partnership for "holds" and create an S-corp for flips (not a partnership). Two reasons: S-corp provides more legal protection and flips are handled totally differently when it comes to taxes (this wasn't happening with my previous accountant). 

@Daniel Smith Denver area has a huge shortage of affordable living. Perhaps you could identify single family properties (or small commercial buildings) for conversion to duplex or triplex. Create a network of a "hungry" contractor(s) to do the work. Your first projects may have to be an LLC with others. Use your sales & negotiating expertise to work with the building dept, planning etc. I understand that the Globeville area is on the verge of renewal...

I'm with @Shawn Thom - I use QB and really like it. But instead of classes I set up each property as its own "asset" and then create a master expense category for each and then the sub-categories of expenses. So, the house I'm doing on White Ave would show an asset value of $100,000 (what I originally paid for the property). Then I have a White Ave expense category and under that I have appliances, utilities, insurance, materials, labor, etc. With a mouse click I can see where I am on my line item budget and my overall budget. And yes, works really well with my accountant.