All Forum Posts by: Tim M

thanks for the info, guys

This is an old topic, but I was thinking ...

Why wouldn't the tenant just refuse to go to the PO and sign for the letter?

I purchased the NOLO book on tax deduction guides - which is excellent and is helping me understand.

One word of caution is falling into a General Improvement Plan category. ie purchasing a rundown REO that needs a lot of work in order to get ready for a tenant and you are increasing the property value by an appreciable amount. Expenses that would normally be considered as repair must be depreciated if part of the "General Improvement Plan".

Great info, thanks for the link to the IRS pub. Which after reading, I have a question.

It sounds like if you have to purchase equipment in order to make an improvement you can only depreciate the amount that it would depreciate while in service on the project. So for example you purchase a tile saw for $160. In a normal business wouldn't this be depreciated in the year purchased. So if it takes 2 weeks you could claim like $6 ... Or sell it and the difference would be used for depreciation? Or start a handy man business to fully get the depreciation?

Tim

Good point Dick, yes the cost of drilling a new well could sway the decision.

"Before I install a pump and tank, I'd ask the installer to attach a hand pump and make sure the well has water... "

I plan on renting the property, not flipping. In this area if you have a well it is a shallow well, sulfur smelling and contains iron. You will want to put a bag of salt in the softener every month.

The city actually is running a special - helping with the connection from the meter to the house. There is an additional charge but it is not anywhere near what a plumber would charge.

I need to determine what the pay back is for hooking up to city water.

Thanks for everyone's comments.
Tim

Purchased a REO and in the process of rehabbing. The house is setup to run off of a well. The well pump and water pressure tank are MIA - est cost $750. Or should I bite the bullet and hookup to city water - which is on a voluntary bases at the cost of $7k. The city offers low financing for up to 20yrs ie the payment would be $35 a month.

Is there any upside for hooking up to city water other than fewer maintenance issues? From what I can tell it doesn't increase property value or potential rental income and is more of a personnel preference? Opinions?