All Forum Posts by: Tom R.

I woke up to this text this morning from my tenants new roommate Tom. He moved in a few months ago with my permission.

"Good morning- hope you are doing well? Regard your home on Atkins and my addendum. First I'm looking for you to be fair with Yari . Second I'm very disappointed as there is still no direct air from cooler into the room used by Yari. Second we need to discuss the spraying of bugs and weeds. I'm not allowed to be around poisons while in chemotherapy. We had ants yesterday in my food . What is your plan? I need that by this MO. Also please change the cooler pads as the salts are sprayed all over my bed, the living room etc. Again I'm not supposed to breath pollutants while on chemo. Failure to ignore and respond by this MO will start serious actions by myself. Would rather work with you for sure."

First no one has requested direct air not even Yari. Second insects and yard care are the responsibility of the tennent according to the lease. Third the cooler pads are relatively new more than likely I put too large of a pump in the cooler. I don't mind making repairs and improvements. Ive already added updux in the bed rooms and installed a programmable thermostat at the Toms request but when you threaten me I don't want to do anything for you.

Just now I received a call from Yari. She got a job offer out of state and is moving in a couple of weeks. Her lease isn't up until December and she has agreed she will continue paying her part of the lease until a replacement is found and I have agreed to help her find a replacement.

I will look at the cooler and remind them of their responsibilities. I am willing to let the yard work slide for the time being so long as the weeds are cleaned out when the tenants vacate the property. I don't know what can be done about bugs without using (which have never been a problem until now).

I guess I'm looking for advice on how to handle these new developments. Also what kind of accommodations do I need to provide for my tenant who has cancer?

I have a verbal agreement to purchase a houseand just found out that the previous owner died in the home last year. In California you have to disclose deaths within the past 3 years when selling or renting. Death doesn't bother me but I know a lot of people are bothered by it. how much does this affect the resale value of the home? what about the rental value?

Ive been discussing purchasing FSBO house which was inherited. The owner mentioned that they want a fast closing and after my last offer he said he would discuss it with the "partners". I assume this means the rest of the family. I haven't heard from them in a week. How long would you wait before reaching out to the seller?

@James Masotti Good advice. I bought my first B&H last year planning on not withdrawing any of my cash flow for at least the first year.

I know a lot of people who have said they are going to or want to leave California for years. Almost none of them have and it's a shame because California would be better off without them.

I've lived in California for 30 years and I plan to stay.

I just havent decided yet. Either way I will make money. If i flip it I stand to make about 20000 but if I do the brrr method I will have basically purchased the house with no or very little money down but my monthly cash flow is less than $200. Either way I will be tracking my expences.

Originally posted by @Michael Plaks:

@Tom R.

So you're buying a house and have no idea what you will do with it. This is rarely the best idea. I'd recommend having a plan first. 

Taxes should not be a consideration at this point. Besides, the answer changes depending on how you will end up using the house.

For example, if it will be your residence, you usually can sell it tax free 2 years later, so deducting repairs is not really an issue. If you flip it - all repairs will come out of the selling price, ending up as a deduction. If you rent it - the answer is more complicated: repairs will be deductible, but maybe right away and maybe later. House-hacking is the trickiest one to answer.

I am negotiating the purchase of a house that I intend to fix up and either flip or refi and rent out. Im purchasing it as a primary residence since all my free time will be spent working on it I might as well live in it while I do it. My question is are the repairs I make on this house tax deductible?

I made an offer today on a for sell by owner house that is in need of extensive repair. Then it occurred to me that I might have a problem getting a mortgage. Mainly because there is an unfinished, un-permitted 400sq ft add on with a sagging roof. I made my offer well below the appraisal price knowing that I will have to either have the add on removed or bring it up to code. My hope is that I can turn the add on into another bedroom possibly with a half bath but if I cant I've already budgeted for its removal. The rest of the house needs flooring and paint and the ceiling under the evaporative cooler need to be replaced due to the cooler leaking.

What do you think? Will the mortgage company give problems even though the offer is more than $20k under the appraisal value?

I am considering making a deal on a house that will be a sort of blend on seller financing and a lease option. The seller doesn't have enough equity to do seller financing. I will put a small down payment and pay rent for an agreed upon period and at the end of the period buy the property. At the same time I will lease the house out to someone else and be responsible for the upkeep of the property. My question is can I get landlord insurance for a property I don't own or would I have to get the seller to carry the insurance?

I'm actually considering something like this myself. I dont think the owner has enough equity to do seller finance but Im thinking we could do a blend of seller finance and lease option.