All Forum Posts by: Tiago Martins

@Nicholas Aiola  perfect.  Thank you for the information. 

@Nicholas Aiola I was wondering how deductions apply to purchasing a new property. From what I understand, you can’t deduct start up costs. Is this correct? If so, if the previous tenant is in the house after you close, and then move out after a few days, are you then able to write off start up costs? I’ve also read that a loophole to this is to list the property for rent day one, even though it’s not ready to be rented.  Is this correct?  Thank you. 

I read that you can’t deduct expenses when purchasing a property and making it rent ready, until it’s listed for rent. So any repairs to make it rent ready can’t be deducted, correct? Now, I have also read that listing the property for rent from day one, is a way around this. Is that right? If I purchased a SFH with a tenant, but the tenant is moving out 4 days after closing, are they considered my tenants (I am performing final walk through and getting keys)? Does this mean I can deduct expenses to make it rent ready? Or, is there anything that can be deducted?

...and there is no current lease agreement.

I purchased a townhouse with a family living in it. They say they will be moving out at the end of the month. What kind of agreement should I make in writing? Is an email or text back and forth, enough for an agreement, since they should be leaving in 12 days?

Thanks for the feedback. Trying to tag people but it isn’t working. I didn’t know I created two discussions. I spoke with the mortgage company and explained the situation to them. They said they will have an appraisal done and if it appraised and they can cut a check for $65, they aren’t concerned what me and the seller do afterwards. I even told him I didn’t want to do anything illegal. He said the seller can write me a check for $14k to fix the foundation and make repairs. I also talked to an attorney and they said the same thing. Just going to write up a co tract betwee me and seller about the $14k and what it’s being used for.

I spoke with the mortgage company, and they said as long as the house appraised for $65k, they don’t care what money is exchanged between the seller and buyer after closing. If he wants to write me a $14k check to repair the foundation, that’s not a problem.

If a buyer is having a hard time getting a loan for a townhouse that a friend wants to sell for $51k, because the bank requires the loan to be at least $50k after 15-20% down, would it be okay for his friend (the seller) to say he is selling the house for $65k, so the buyer can qualify for the loan? So, $65k loan with 20% down ($13k) leaves a loan of $52k. The $14k ($65k-$51k) that was payed over what the seller wants, is given back to the buyer to fix the foundation and any other repairs. Is this legal? If not, can the contract say the seller will put $14k towards fixing the foundation after closing, since he has the $14k extra in his account?

If a buyer is having a hard time getting a loan for a townhouse that a friend wants to sell for $51k, because the bank requires the loan to be at least $50k after 15-20% down, would it be okay for his friend (the seller) to say he is selling the house for $65k, so the buyer can qualify for the loan? So, $65k loan with 20% down ($13k) leaves a loan of $52k. The $14k ($65k-$51k) that was payed over what the seller wants, is given back to the buyer to fix the foundation and any other repairs. Is this legal? If not, can the contract say the seller will put $14k towards fixing the foundation after closing, since he has the $14k extra in his account?

Great advice Ozzy Smith Thanks.