So I jumped on the band wagon and bought a fixer upper..........
I was told all these wonderful things about how I would get my money back for the work I put into the home. Ahhahhaha, no, that's not the way it works. You got repairs and you got improvements and only the REPAIRS can be deducted in the year you spent the money for the work and trust me, NOTHING IS CONSIDERED A REPAIR IN THE EYES OF THE IRS. ITS ALL CONSIDERED AN IMPROVEMENT. Guess how long it takes to get credit for an improvement? Bout 150 friggen years. I am so frustrated with this entire process. I must have spent 40 THOUSAND DOLLARS fixing up this dump. Thank God my plan was to rent it out which I did for 3 years and yesterday I sold it. But guess what, now I gotta pay capitol gains in excess of 8 thousand dollars because it was a rental property. Trust and believe you better know what you are doing listening to all these people talking about how wonderful this sh** is, cuz it can certainly mess you up if you dont.
The one thing that I required and insisted on is that the tenants paid me via my bank account. I took no cash, and if they couldn't pay via quick pay, they had to live somewhere else. Also, I rehabbed the home to withstand Renters so I got very few calls to fix anything, but when I did, I had people in the neighborhood that would address any issues.
@Angelique A. It's only a 10k property because that's how your thinking of it. What did it sell for? When you bought it, what was its value in your mind?
This deal has A LOT of red flags! That’s okay. Trial by fire. Now you know for the next one. Good luck!