All Forum Posts by: Teri Feeney Styers

@Niraj S. The reason septic tank size is rated by number of bedrooms is the presumption that the more bedrooms you have, the larger the household size and therefore the more "stuff" flows into the tank. The tank system you have is probably perfectly functional but will fill up faster than average. So, while an appropriately sized tank will need to be pumped maybe every 4-5 years you might have to pump this one every 2 years. @Trish Mccoy is correct in her advice. Get a good company out there to assess what you have before buying. You didn't say if the house had been lived in - but maybe a local company is already familiar with it and has done service. I will say, it is kinda confusing as to how this design passed the building department when the house was constructed. But maybe their oversite in your area isn't as comprehensive as it is where I live. 

@Darvin Ezell the foundation plans had to be stamped by an engineer but the rest of it was drawn by a draftsman. My lumber company had someone draw the trusses and floor frame parts based on the floorplans. 

@Luis Arevalo @Ben Rhodin is correct. CHFA won't lend on a multi-family property; but there is nothing to prevent a conversion after the fact. I see properties all the time that are good candidates without tons of additional dollars needed. 

@Ryan Stuckey because my husband and I are the only two W-2 employees we chose the SEP option. As a flipper, others who work for me are always 1099 subs. And yes, once the money flows into our personal account I make additional retirement contributions to our IRAs. @Luke Tetreault we pay ourselves a "reasonable" monthly base salary and toward the end of the year I see how much money is leftover and then make those final paychecks "bonus" - with appropriate taxes withheld and additional monies paid into the SEP. As you know, flip funds can come in chunks rather than a steady income. I always make sure that my personal accounts have enough to carry us for awhile. Sometimes I have to play catch-up and the "monthly" checks get written in batches. 

@Luke Tetreault get a new CPA and start an S-Corp. I am a flipper and an S-Corp. On my bookkeeping I don't claim ANY flip expenses until I claim flip income. If I bought a house in 2022 and sold in 2023 then all that income and expenses is recorded in my 2023 taxes and this is acceptable to the IRS. As an S-Corp the net income is pass through to my personal taxes via a K-1. But I don't let a lot of income pass through. My S-Corp has W-2 employees (me and my husband). My S-Corp pays us a salary, and has an employee medical reimbursement plan, and a SEP plan for retirement benefits, and is allowed to write all that off before it reaches the bottom line. Yes, as a W-2 employee I do pay some taxes on my salary. But I don't pay as much and those other "benefits" offered by my employer (me) makes it worth it. Also, as @Mike Dymski mentions, you can live in a flip and pay zero taxes on the profit as long as it is your primary residence for 2 of the past 5 years. However, the improvements made are out of pocket personal expenses - not deductible. And you don't have to live in the house during the construction mess - just for 2 years after moving in. So maybe you own it for 2 1/2 or 3 years. 

FULLY APPROVED SUBDIVISION - 17 "shovel ready" lots ready for developer at a total cost of $19k per lot. Can only be sold whole - no individual lot sales. You build the infrastructure. Seller is Rejuvenation Homes and owner is a Realtor. Land only - no dwellings. It is 3.23 acres located at the corner of E Road & 32 1/2 Rd. (500 32 1/2 Rd, Clifton, CO 81520) See this MLS link for more details or reach out to me. I have TONS of documents and local bids for the work. https://gjara.paragonrels.com/...

@Luis Arevalo start with cashflow - so many properties won't make a profit. Then you can look at other details like location, type of tenant it will attract, property condition, etc. 

@Luis Arevalo CHFA loans are a great way to get into a property with only $1000 down, but you better talk with your lender about your plan. Generally there is a second mortgage for that down payment assistance. If you refinance you will be on the hook for both the first and second mortgage (you need to own for a longer period of time before that second mortgage is forgiven). It is hard to imagine that you will have created enough equity to pay for the refinance fees, both mortgages, and still have cash to move on to the next purchase anytime soon. It sounds as if you already have this property under contract? If so, then the decision is already made. If not, then you need your Realtor to help you find rental comps and help you figure out what will work for your plan down the road. In the future, you need to assess each property independently when it comes to determining if it will cashflow, etc. I think you are asking your question way too early... 

@hamp

Hi @Cherie Tormey - I work with investors on the Western Slope (mainly Grand Junction) and also build/rehab properties in the "affordable/attainable" category. I see you are in the Denver area. You should check out this real estate company. https://liveworkdenver.com/ Maybe you could partner with some of their clients to create housing situations that also provide you a ROI.

@Andy Rousch and perhaps it is time to get a little proactive with your local government and planning department regarding ADUs, etc? It is one of the primary solutions to the affordable housing crisis the nation (and presumably your area) is experiencing... As an agent you are in a position to provide them some local statistics...