All Forum Posts by: Terry Alexander

Ryan,

 Schedule E must be done with taxes.

The info I told you is based on Fannie/Freddie guidelines, but in each underwriter will do this a little different.  So repairs costs if on you schedule E may be held against you.

Hey Aaron,

 I too live in Sonoma County. It has gotten expense the last couple years. I'll second Dean, I've started to look to Mendo and Lake counties, for better cashflow.

Terry

That's a 12% cap rate, what part doesn't pencil out?

-Terry

Hey Ryan,

 If you have rental history of 24months for this property ( 2 years of Schedule E) you can add your depreciation back in, and this should count as gross income. You can also use 75% of new purchased property's lease amount to offset it's debt, provided you supply a signed lease agreement.

You are correct that the full 200K is counted as gross income, in your example.

Terry

Thanks for the reply. What do you mean by the quoted statement above? Where is this written.

 Terry

Hello,

 On a month to month commercial lease, does the landlord have to give 30 days written notice to increase the rent like they would on a residential lease?  This is in California.

Thanks,

 Terry