All Forum Posts by: Tom V.

I would've negotiated the purchase price better for one.
In all, it turns a profit, so it's not all bad. But a slightly lower price, and I would have foregone the seller finance portion, put more down, and only have to deal with one payment every month.

And if we're really going to fantasize about what I would've done different, seeing what 2 families are going for now - I would've not purchased it, and purchased 2 duplexes instead, for the same money, or less. One extra unit of rent, plus the insurance costs, at least in my area, would cost me less to insure 2 duplexes than i'm paying for a single 3-family.

But, again, it's a learning experience, and I do not regret it one bit. A few lingering doubts about what I could have done differently I've been languishing over, but no regrets.

Thanks for the warm welcome, guys. It's appreciated. :)

Not the best deal we could have had, but again, we learn on the first one.

5% on 116250 25 year loan, adjusts every five years.
Seller finance at 4% on difference between loan amount and our down payment. Amortized over 30, balloon at 8.

I feel hosed, but again, I didn't know what I know now.

With what we're saving, I plan on refi-ing within those first 5 years, as well the balloon to the sellers should be paid within that time frame as well.

There were many other positive aspects to the deal as well, but I still feel we could've done better.

But it works, for now.

Hi guys.
We are total newbies when it comes to real estate investing.

But due to unforeseen circumstances (bme becoming disabled and no longer able to work) we decided to give it a shot and enter the market.

We purchased a 3 family multi for 155k with only 20k down.

Income is 2300 total monthly, and pays off the mortgage, as well as a good 80% of my own home's mortgage.

We couldn't be happier!

We should have entered the market much sooner.

With what we're saving, we are putting enough away monthly to make another purchase sometime before the end of this year. Albeit a smaller purchase, as as good as the deal was, looking back, it could have been better....
Anyway, you learn on your 1st try, right?

Unfortunately, I never found BP before I made the purchase. But now that I have, i'm addicted, and can't stop reading! LOADS of valuable info here!

I look forward to talking with and learning from you all!

Thanks for having me!

Welcome!
I have only been here 1 day, and already have learned more than I ever have about real estate investing!

And of course, it is also nice to see others from CT!

We are on the hunt for a good CPA.
As i'm sure you know, there's good ones, and bad ones.
I want to get all the info I can, so we can do all the numbers ourselves first, to get a baseline of where we stand.

That way, I have some info to go on when we do get a CPA, so I can know if i'm getting hosed or not.

Besides, I'm the type who wants to learn and know as much as I can.
And we intend on growing the business, we have some good reserves, and want - and are on track to - acquire one rental property per year going forward.

Any help I can get to learn as much as I can now will help greatly in our future endeavors.

Hi guys. Found the forum through google, seems like a place I can learn from.
I've been reading this forum forever, and find myself more confused than when I started. Ugh.
Anyway, I need help on understanding taxes regarding a rental property I bought, and it's affect on our personal taxes, and the best way to go about this.

Details:
My girlfriend and I have been together 11 years, and have 2 children. We are NOT married. However, everything we have is in both of our names.

Previous to our endeavor, we had NO real estate experience as an investor. We are just starting out.

We bought a rental house, a 3-family multi, in July 2012.
Upon suggestion and explanation (which may not have been entirely accurate) we formed an LLC for the purchase, and to hold the property.
We are both equal holders of the LLC.
It was set up as a "pass-through" LLC, as the attorney explained it.

Rental income is 2300 monthly total.
(I've seen others stating phantom losses due to maintenance and months of open tenancy - but don't get it - someone explain?)

We perform all of the maintenance on the property ourselves.

We remodeled the 1st floor apartment, my gf and her brother did most of the work (I helped paint) at a cost of roughly 2500 for materials. No labor, except for 500 to a friend to redo the hardwood floors. (total cost of remodel 3k)

Her income from her daily job (active income) is 37k annually.
I have no income - disabled, and my social security hearing isn't until 2014. Until then, I've got nothing. Which is why we bought the investment in the first place, to replace my lost income.

So, we are at 65 annually total, well under the 100k limit for passive activity losses.

Where i'm confused is, the taxes. I have no tax return, as I have no income. But - since we are BOTH on the LLC, do I now have to file a tax return?

Obviously, as we are NOT married, we previously had filed our own, separate tax returns, as single.

What I'd like to do, is just do the rental income on her taxes, as i've seen most others doing. Do it as passive income, and go from there. But not sure if we can do that, since I am also on the LLC.

I want to take the deduction for all of the mortgage interest and fees i've paid, everything allowable by law.

At the same time, I want to maximize my return.

And I have no idea what to do.

To make matters even more complicated, we ALSO purchased our main living home in April 2012, and I also want to deduct the mortgage interest and all allowable fees for that property as well.

I've tried doing this all in turbotax premiere, but it just doesn't ask the right questions or give the right options.

Well, i'm sure I have not given all relevant info, or even asked the right questions.

So please, need any more info, just ask.

Please guide us, we're confused as hell.