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All Forum Posts by: Yifan D.

Yifan D. has started 5 posts and replied 24 times.

Post: Home Cash out Refinance for Rental Investment tax deductible?

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

@Michael Plaks 

@Eamonn McElroy

@Ashish Acharya

Thank you guys for your valuable inputs.

Post: Home Cash out Refinance for Rental Investment tax deductible?

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

@Ashish Acharya

I always file Schedule A and Schedule E.

I will divide the end of the year interest for the refinance between Schedule A and Schedule E.

Schedule A will be allocated the portion of the refinancing interest relating to my original mortgage balance for my primary home.  I'm not exceeding the $750,000 limit for Schedule A mortgage interest deduction.

Schedule E will be allocated the portion of the cash out interest from the refinancing.  

For example, my year end total interest from Form 1098 for my refinanced mortgage is $9000.  My cash out portion is 1/3 of the refinanced mortgage.   I will deduct $6000 using Schedule A.  I will deduct $3000 using Schedule E. 

I am interested to know if the $3000 deduction is allowed on Schedule E assuming I can produce bank records to meet IRS Interest Tracing Rules.

Post: Home Cash out Refinance for Rental Investment tax deductible?

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

Taking advantage of super low primary residential mortgage rates.

Will refinance my primary house and plan to cash out enough to pay off an investment property's mortgage balance.

Will deposit the cash out check and pay off the investment property's mortgage within 30 days.  Will keep all banking records.

Will the cash out portion's interest of my refinancing still be tax deductible under Schedule E of my tax return?

Post: Property Managers Management Lehigh Valley Allentown-Bethlehem

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

Update:

I have transferred all my portfolio to Cassidon since the beginning of the year. I used to split my portfolio between Cassidon and another PM. The other PM closed shop and transferred my account to a new PM who really didn't know what to do when no rent is coming in and the new PM tried to modify our agreement with material changes that were tacked to the very last two pages of the renewal package.  Luckily, I went through every page and turned the renewal down.

For new investors in the area, good PMs are very busy and might not be interested in getting new clients at the moment that you contact them.  For example, I called Steel City PM and did not get a call back until over a week later.  Nevertheless, the owner and I had a good discussion about investing in the Lehigh area and I my impression that the owner is very knowledgeable.  I never went as far as discussion specific management terms because I already decided to consolidate everything under Cassidon by then.  If you really need a PM asap, maybe you can just walk to their office 2 to 5 pm Monday to Thursday.  You will most likely have the person in charge at the office during those hours.

Post: List of Bethlehem Tenant Evictions, Filings, Court Judgement

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

I have been investing in south Bethlehem, PA (a.k.a. historical Bethlehem) since mid 2015. I have a portfolio of 7 SFRs that I assembled between mid 2015 to mid 2017. I have been using local property managers to manage these properties.

I want to start a thread that local landlords can post their judgment claims against tenants. Hopefully, this thread will become popular enough that it will appear on the first page of search engines along with the tenant names and key words such as: eviction, judgement, filing, lease breach, deadbeat, owes rent, and lease default.

I have experience with background check services. I do not find them to be 100% in capturing everything and may not have the most up-to-date eviction filing information.

Unfortunately, I had to initiate filing for the following tenants that I came across.

Tenants with court judgments:

Josue Sierra and Jessica Sierra

Docket No. MJ-03210-LT-0000071-2017

Eileen Andino

Docket No. MJ-03210-LT-000024-2018

Kerrithe Foster and Scott Mackaravitz

Docket No. MJ-03210-LT-0000043-2019

Linda Brickhouse and Willie Brickhouse

Docket No. MJ-03210-LT-0000118-2019

I recommend the following website to screen perspective tenants. It is not user friendly and will not produce any results if you input anything wrong. However, it is an extra layer of screening for any perspective tenant.

https://ujsportal.pacourts.us/DocketSheets/MDJ.aspx

Post: Property Managers Management Lehigh Valley Allentown-Bethlehem

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

Update:

Still using Cassidon. Satisfied with their service.

Green Valley closed shop because the owner wants to focus on his other business. Transferred my accounts to One Valley by default. Been with them for 2 months. Still working out the details.

I see a high demand for decent PM in the area. Any motivated individual can build a sizeable business quickly with transparent service and basic online marketing.

Post: Property Managers Management Lehigh Valley Allentown-Bethlehem

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

Hi Everyone, I have been using Cassidon since 2015 and Green Valley since 2016.  Both managers have met my expectations.  They are transparent in their dealings with you.  

Post: Long Time New Yorker looking for high cash return rentals near NYC

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

HI Everyone, I have been dormant with this site.  Sorry about that.  I am still investing in Bethlehem PA.  I have increased by rentals from 2 doors to 7 doors since 2015.  All SFRs.  Still looking for good deals in Bethlehem.

Post: Property Management: Eviction Protection Programs?

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

I have rentals in Bethlehem and spoke to Riley. I'm not using them currently. IMO 15 per month is steep considering the typical rental is between 700 and 900. You are looking at 12 to 13% in management fee with that insurance. I suggest that you price your rentals competitively so you can find tenants that meet your screening criteria. Other management usually charge a flat 200 fee for each eviction in Bethlehem.

Post: Passionate wrestler trying to make his goals a reality

Yifan D.Posted
  • Rental Property Investor
  • Bethlehem, PA
  • Posts 26
  • Votes 14

Steps

1. Determine your downpayment amount. I think 5k is the absolute minimum you need in south Bethlehem for FHA loan.

2. Look up your own credit report. google free credit report. make sure the url ends in gov. you might need to pay to get the actual scores. If you have above 700 then you should have no problem getting pre qualified for a mortgage.

3. Google bankrate. Find the lowest APR and closing fee mortgage originator. I remember Sebonic Financial being a low cost originator.

4. Start calling the lowest cost originators until one tells you that they can provide a pre qualification or pre approval letter for $125k or higher. Pre approval letter is better than pre qualification.  They will all ask for your social security number so they can pull your credit score. DO NOT give them your social security number. Let them know that you don't want your score to drop by loan inquiries and you can email them your credit report that you have.

5. Monitor zillow, trulia, craigslist, realtor for listings. Start going to open houses just to get a sense of the market. If you need more hand holding. I suggest that you google Anthony Ramos from Century 21. The office is on E4th St. I am working with him on some investment properties. He is a career broker and has his own rental portfolio. He might give you some guidance but you still need to do your own due diligence.

6. Make offers and show your pre approval letter when requested to prove that you are serious.

Good luck!