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All Forum Posts by: William Arrington

William Arrington has started 6 posts and replied 80 times.

Post: Tax write offs and depreciation

William ArringtonPosted
  • Gainesville, VA
  • Posts 82
  • Votes 72

@Ashish Acharya

In the middle of switching my CPA. The one I had was amazing with stocks but doesn't do real estate. The new one I am bringing on after we meet has rentals himself. Hopefully that meeting goes well

Post: Tax write offs and depreciation

William ArringtonPosted
  • Gainesville, VA
  • Posts 82
  • Votes 72

I am closing on 2 AIRBNBs and have started buying the things they will need. The question I have is... Will I be able to write off and depreciate the items since I technically do not own them for another week or 2. Everything being purchased is for the property but I don't want to get stuck without an item because of how weird the economy has been with no inventory.

Post: Who Pays for Capital Expenditures?

William ArringtonPosted
  • Gainesville, VA
  • Posts 82
  • Votes 72

@Michael Gorius

Property always gets paid first and then profits get split. If you don't do this and build a fund for these expenses you are going to end up with a main water line repair that cost thousands and have no way to get the property right without more debt. Talk to your partner and put this is writing and if they won't budge... its time to find a way out because they are setting you up for failure.

Post: 2nd AIRBNB under contract

William ArringtonPosted
  • Gainesville, VA
  • Posts 82
  • Votes 72

It was more a concern for my DTI. The original second property I wanted was about 25% more expensive and put my DTI at 44%. 44% with 3 mortgages isnt to bad without any income on them yet but we managed to get the underwriters to agree. Interest rates are not bad either for a investment loan. 3.25% and 3.5%

Post: 2nd AIRBNB under contract

William ArringtonPosted
  • Gainesville, VA
  • Posts 82
  • Votes 72

I set a goal for real estate profits 2 months ago that in 3 years year I could hit.  I just had my second offer accepted (pending inspections and all the rest).  My 3-year goal was hit in 2 months even if I am off by 20% on my profits.  It's a pretty amazing feeling and all the people that told me it was a pipe dream are looking at me like I just did a magic trick.  I will say that my loan officer did not enjoy my call about wanting to buy a second while the first one was still pending.. its still pending with the inspection on Thursday.  

For me, it wasn't very hard.  I had a conversation with our CPA with her sitting there and when your CPA asks how old you are in the middle of the conversation thats either a really good sign... or a really bad one.  Once she realized I knew what I was talking about I just started showing her the numbers and it ended with us retired in St. John with a 2 million dollar beach home and it sold itself.  

Post: Tenant with no SSN or US ID card

William ArringtonPosted
  • Gainesville, VA
  • Posts 82
  • Votes 72

Be careful with this.  The Fair housing act is kind of open here.  

While the above concerns are legitimate, there are some popular but unfounded generalizations about undocumented persons that a landlord can safely exclude from his or her rental decisions. For example, the claim that undocumented immigrants are associated with increased violent crimes has been debunked by nonpartisan studies, as has the claim that undocumented immigration is associated with increased drug crimes.

A landlord who makes rental decisions based on such generalizations could run afoul of federal and state housing laws. Both the federal Fair Housing Act ("FHA") and the Pennsylvania Human Relations Act prohibit discrimination in housing based on race, color, national origin, religion, sex, familial status, and disability. Although the FHA does not specifically prohibit discrimination based on "citizenship status" or "immigration status," denying housing to undocumented persons could constitute discrimination based on "national origin" where the discrimination is based on the tenant's language or national origin in general, regardless of immigration status. The Department of Housing and Urban Development has clarified that undocumented persons do have the protection of the FHA where they are denied housing based on any of the listed classes. Similarly, the Pennsylvania Human Relations Act could be applicable where a landlord rejects an undocumented person as tenant based on their ethnicity or national origin rather than simply their immigration status.

So just make sure you protect yourself and keep your practices the same.  If you require a background check and you cant do one on someone then that is in line with your requirements.  I am not a lawyer and you should check with one because what I said is my educated opinion and nothing more

Post: Replace flooring now or later?

William ArringtonPosted
  • Gainesville, VA
  • Posts 82
  • Votes 72

Always after Kitchen remodel and painting.  Think about it like dusting.  You start at the top then work your way down.  If your doing it yourself you could start the flooring and finish rooms as your work is done in there.

Post: REP status for running STR's

William ArringtonPosted
  • Gainesville, VA
  • Posts 82
  • Votes 72

https://www.aicpa.org/resource...

I would get with a CPA who works with real estate and ask the questions.  You can start your reading here.  It has the tax code numbers on it for things it allows.  Hope this helps

@Nick Velez

The lender called me back and said that my DTI is just under as long as we bring 25% which isn't a problem. He just told us to have a slow closing so the bookings so I can show income. I would like this to keep going though. I am not the only one that has this problem