Ethan Borshansky
Can you 1031 Exchange into capital improvements?
2 January 2025 | 5 replies
Any capital improvements on a not owned yet property would involve a complex 1031 you’d want someone like @Dave Foster involved in.
Sofia De Santos Tavarez
How do you determine a scope or work and what materials to buy?
26 December 2024 | 13 replies
To streamline design choices, create a design guide or "mood board" beforehand to stay consistent with finishes that match the neighborhood's expectations.For monitoring progress, a property manager can sometimes oversee construction, but it’s typically better to rely on the GC for updates.
Melanie Baldridge
What is MACRS classification?
10 January 2025 | 0 replies
When it comes to real estate, here's a general list of eligible assets and their depreciable lifespans that you should know: Residential Rental Property = 27.5 yearsThis includes any building or structure where 80% or more of its gross rental income is from residential units.That means:- Apartment buildings- Single-family rental homes- Duplexes, triplexes, and quadplexes- Mobile homes (used for residential rental)- Any kind of residential lodging facility where the primary purpose is long-term rentalCommercial Property = 39 yearsThis includes non-residential properties like:-Office buildings-Retail stores and shopping centers-Warehouses-Industrial complexes-Hotels and motels that do not qualify as residential rental propertyLand Improvements = 15 yearsThese include sidewalks, roads, fencing, some landscaping, and parking lots that are separate from the building.Personal Property = 5 or 7 yearsPersonal property used in a rental activity usually has a 5 or 7-year life.This includes most furniture, appliances, carpeting and various machinery.Qualified Improvement Property (QIP) = 15 yearsGenerally, this includes any improvements made to the interior of a non-residential building after the building was placed in service, excluding elevators, enlargements, and the internal structural framework.Computers and Related Peripheral Equipment = 5 yearsVehicles = 5 yearsNote that the land itself is not depreciable.
Jonathan Baptiste
Any advice on finding dependable contractors
10 January 2025 | 4 replies
I'm a pretty handy guy but this would be outside of my realm, but my experience helps me understand how much this type of improvement should cost.Improvements: remodel kitchen and bathroom, paint interior, fix exterior scafolding.How should I go about finding a contractor?
Garrett Brown
This ONE Change Can Boost Your Airbnb Ranking
8 January 2025 | 22 replies
That’s why improving your Click-Through Rate (CTR) is one critical metric to focus on to boost your Airbnb profit and visibility.The key to improving your CTR?
John Davey
Can you deduct interest (primary house) from a home equity loan to buy a rental?
3 January 2025 | 11 replies
The loan does need to be secured by the property being improved if we are talking about a personal residence and personal itemized deductions on Schedule A.
Brad Roche
FHA 203(k) vs. Fannie Mae Homestyle Renovation Loan
10 January 2025 | 1 reply
Here's how they break down:Fannie Mae HomestyleMinimum Down Payment: 3%-5% (Primary Residence) & 20% Down (Investment/Second Home)Credit Score: 620Minimum Loan Amount: $50,000Maximum Loan Amount: Per County Loan LimitsOccupancy Types: Primary Residence, Second Homes, and Investment PropertiesUnit Maximum: 4 UnitsAcceptable Renovations:-Structural Improvements (e.g., new roofing, foundation repairs)-Cosmetic Enhancements (e.g., new flooring, updated bathroom/kitchen fixtures)-Energy Efficiency Upgrades (e.g., solar panels)-Accessibility Modifications (e.g., ramps, widened doorways)-Luxury Items (e.g., pool)-LandscapingNot Acceptable Renovations:-Commercial Use (e.g., turning a residential property into a commercial property)-Temporary Structures-Non-Residential Buildings (e.g., barns, stables)FHA 203(k)Minimum Down Payment: 3.5%Minimum Credit Score: 620Minimum Loan Amount: $50,000Maximum Loan Amount: $524,225Occupancy Types: Primary Residence ONLYUnit Maximum: 4 UnitsAcceptable Renovations:-Structural Improvements/Reconstruction (e.g., adding rooms, bathrooms)-Cosmetic Enhancements-Eliminate Health and Safety Hazards-Energy Efficiency Improvements-Major Landscaping (e.g., grading, tree removal, adding walkways)Non-Acceptable Renovations:-Luxury Items-Commercial Use-Temporary Structures-Non-Residential BuildingsBoth of these renovation loans are similar in many ways, but the key differences are:1.
Troy Smith
Refinance step of BRRR
10 January 2025 | 5 replies
It's a great way to showcase the improvements made and helps appraisers not miss stuff.
Don Konipol
How to Avoid LARGE Loses in Passive Investing
30 December 2024 | 22 replies
If I can invest $5K a pop instead of $50-100K, I can invest every single month, no matter what the "mood" of the market is.