All Forum Posts by: Tim Hertz

Here's my question......I just got a roommate. He pays $425 plus half the utilities. He rents 2 bedrooms from me and a garage space in my single family home (4 bed/ 2bath). My question is on the best tax strategy for what I am wanting to do both long and short term. Which expenses can I write off now without shooting myself in the foot when I go to sell the place or rent it out? 

I either want to sell the house with no capital gains after two years OR rent out the whole house after a couple years. 

I bought the house for 38k and have about 7k in rehab and hope to sell it around 75k.

Thanks for your reply in advance!

Hello all,

I am doing a rehab and I have a sister and a friend I want to hire to help. They will make over $600, but this is more of an "under the table" cash deal. Can I claim $595 (avoiding 1099 minimum) and not claim the rest, or do I just pay them in cash and not claim any of this as an expense? 

Thank you!

Hi,

I was wondering if there is any problems you see in taking a video walkthrough of my rental houses and putting them on Youtube and placing a link the the description on zillow, craigslist, facebook etc. Some are multi units, not sure if that makes a difference or not. One thing that comes to mind is privacy after someone moves in or potential thieves knowing layout of house or something else crazy that people might think about. 

Thanks!

Tim

Hey all,

I am closing on a duplex next week but the top unit is vacant and I would like to list it on zillow, craigslist, local FB etc. Is there any legal trouble I can get into? I won't show the place until after I close, but I will use inside/outside pictures of it. 

 Thanks,

-Tim

@JD Martin Thanks for replying...I enjoyed listening to your podcast interview. For the record, I am not papering offers everywhere, I will look at the houses and find an offer amount that will fit my cap rate goal. Is there really a difference between a low ball offer and offering to try and get a bargain deal. Brandon Turner says he makes about 10 offers (assumingly low ball or bargain offers) before one is accepted. What do you consider a low ball offer? 15% off listed price? 20%? 30%?  I guess in a nutshell, how does one find bargains in their market without getting a negative reputation. You mentioned use rationale, can you expand on that please?

@Ralph R. Thanks for your reply. I'll ask you the same question: How does one find bargain deals without making bargain/ low ball offers? I'm not interested in being the local hero by buying market value houses/average deals and scratching everyone else's back except my own. I totally agree that your reputation and launch you or sink you in a small community. I'm just trying to find that balance. 

Hey All,

I live in a very small midwest town. I am going to start making a lot of low ball offers in my town for buy and hold rentals that meet my cap rate goals. Should I be worried about getting a reputation around town as being "the lowball guy"? Is there a way to minimize this? 

Also, I am not working with a real estate agent for buying them, as I am trying to get FSBO houses too. Should I be using an agent? What are the main pros/cons with having an agent represent me?

Thanks!

@Kelly Conrad  

I just have it in their contract that they will pay $40 bucks per month for a water bill on top of their rent, and i'll reimburse them their portion if it averages less than that. Idk if that's the best way, but it beats me having to pay for the water. 

On my duplex, the water is not split (electric and gas are separately metered.) What I do is I charge per person. For example, I have two people that live in the downstairs apartment and one person lives in the upstairs. So, the downstairs tenants pay for 2/3 of the water bill. The upstairs tenant pays for 1/3 of the bill.  Each person uses roughly the same amount of water (showers, laundry, dishes, etc.) This is the only way I see it as being fair without meters. 

As far your question on payments, I have them pay a flat rate (I estimate the average they might use and add a little extra to cover myself). At the end of the year, if their true use average is less than what they paid, I reimburse them in the form of a temporary rent deduction. 

I had this same question and this is the best way for me. Both of my tenants are happy to go along with this. Hope this helps. 

As a fellow newbie, I'd say just go for it! I bought my first property (a duplex) in May and I'm glad I did!  In my experience, the more I learned, the less I feared. Have a good understanding of all aspects of real estate.

It sounds like you have done your research already, and knowledge is key in this industry. Research your market, and when you find a screaming deal, act quickly and confidently in it. DO NOT settle for a mediocre deal. A great deal will minimize your risk, and you make your money when you buy. 

That's my two cents. Good luck to you! 

County Tax Foreclosure sales are Public on my county's website.