All Forum Posts by: Terone Johnson

@Lee Ripma I am sold! lol thanks for all of your guys help!

Originally posted by @Natalie Kolodij:

You need a new accountant. 

Any thing with a life of under 20 years qualifies for bonus depreciation. 

A cost segregation separates as much as possible into 5 or 7 year assets which would definitely qualify. 

Even if you do renovations though it's important to note that a lot of things CAN'T be separate out on a rental without a cost segregation. 

If you do a $15k bathroom renovation just because you know the cost doesn't mean it can default to not needing to be capitalized. 

Natalie, Thanks this just further helps me realize that I am correct in what I thought. Thank you again! 

@James Storey thanks for your reply. Yes we have had a cost segregation study done and yet he is claiming that we cannot use this. We've done everything above you mention on our end and handed it over. We are having someone take a look at our cost Segregation study at the moment so that should be really helpful! 

Hi, for those here who own rental properties 1-4 unit residential, Are we able to use bonus depreciation when filing taxes on these assets? I was told that you are only able to depreciate These assets with their normal 27.5 year depreciation schedule. 

I would recommend Sterling Davis at and Ethosity. They are easy to find and check out. You should join the facebook group Indianapolis out of state investors as well. Sterling posts their frequently. I'd love to connect with you guys as well. 

@Anthony McHale I run a wholesale company operating in Indianapolis and have a partner on ground in Indianapolis but I now live in California. I lived in Indy all my life and just moved here 3 years ago. I deal with a ton of out of state investors and have provided many of them with great BRRRR deals in the Indy market. PM me if interested in connecting. I

Indy is a great cash-flow rental market to get started in!

Hi Everyone,

My partner and I have a deal in Greensburg, IN just outside of Metro Indianapolis that we don’t have enough equity to wholesale the property like we usually do but the owner has told us that he would entertain a 2 year lease option on the property. We like the area and feel like a lease option would be a great exit strategy here and the Ideal situation would be to sandwich lease option the deal to an end buyer that would want to buy and live in the property. I have looked into this exit strategy in the past but still have yet to do a lease option deal.

One big issue standing in my way is he has a mortgage on the property and I have not really seen the process of a lease option being done with a house that has an existing mortgage. Would he need to get permission from his mortgage company to lease option this home? All he wants is to get from underneath this mortgage payment which he is willing to sale the House for the 65k and we just pay his current mortgage payment. For those of you that deal with lease options regularly, we’d appreciate your help and opinion on how to position this deal or the right steps we need to take. Details are below.

-Purchase Price: 65K

-ARV: $79,500

-Current mortgage payment: $648.00

-Market Rents: $750/mo

-No Rehab needed for rent ready

-2 year term for $648.00/mo no down payment.

Thanks ahead of time! 

Terone Johnson

@Matt Miller Welcome! Good you chose to pursue real estate. I run a wholesale company in the Indianapolis area. Feel free to reach out and connect.

Hi Danny Ko I am also living in California and do all of my business in the Indy market. I am from Indianapolis and just moved here a little under 3 years ago. I’d love to Connect and discuss the Indy market and if you have any questions feel free to run them by me at any time. Great choice in a cash flow market that will also start to see some nice appreciation here soon. Welcome to BP!

Hi Kevin Dupuis I currently live in California as well but just moved here from Indianapolis 3 years ago. I do all of my business in Indianapolis. I would love to connect and give you the run down on which areas to avoid and which areas are thriving. Indy is a great market with huge potential especially with the tech boom moving in. With The surrounding areas of downtown Indianapolis it’s only a matter of time before things are on fire! I run a wholesale company in Indianapolis so I know the areas like the back of my head, as well as being from Indianapolis. PM anytime and we can talk!