All Forum Posts by: Travis Odette

@Dave Overholser thanks, I think the subject to is what I am looking for after looking it up from you mentioning it.

@Kerry Noble Jr great idea, that’s what I am looking for.

Looking for some help with a proposal that was brought to me.

A homeowner is about to lose the house, just got sent documents to be placed in deferment. The house needs work, had water in the basement and most of the mechanical will need to be replaced, along with drywall and flooring in the basement, plus odds and ends in the rest of the house, not a major remodel. So it would be hard to get what the homeowner owes to sell it fast.

The homeowner has proposed that I pay the mortgage payments, to help save credit score, while I fix the home. When it is sold, I pay off the mortgage (would have to in order to clear title anyhow) then I keep all the money after mortgage is paid off from the sale.

How do I structure this to protect myself and the investment I put into repairs and “holding” costs?

First thoughts are to be added as a secured interest on the title, coupled with a notarized agreement. Another thought is maybe attempt to place a contractors lien on the property for the estimated repair/holding costs?

Any input would be much appreciated.

@Basit Siddiqi thank you, simply put!

@Dave Foster thank you for the input. Yes it is for income reasons, I don’t plan on selling the current place I have now. I meant I have made $10,000 from rental income thus far and I want to use that $10,000 as part of a down payment on a new property. So then it is income, I believe and not a write off expense, and I will pay taxes on that $10,000 at the end of the year and need to keep that in my mind. Unless there is depreciation and costs that can help offset that initial income.

@Ned Carey, Thank you! That is the longer term plan, either use equity or sell and reinvest into larger multi-family homes. 

@Ryan Ingram, thank you for the input. I do believe that I will end up paying taxes on some of it, but as you mentioned I will just have to make sure my tax guy takes advantage of all my write offs. What I do is live off my W2 income and use the rental income to compound more rental income, so with my W2 income I am will likely have to pay taxes on the income I am reinvesting into the new house. 

Hi all!!

I think I know the answer is yes, but I want to get some input.

If I profit $10k (or any amount) from rentals and invest all that into the next rental purchase to add to my portfolio, do I pay taxes on that $10k?

Like I said above, I believe the answer is yes, because it is still income. Then I think, well I am investing it into the LLC to build the business, and I get a second guess in the back of my mind that it may be able to be written off as a business expense.

Any advice would help, thanks in advance.