All Forum Posts by: Steve Vaughan

I would do as many have state already- get the house re-rented and maybe negotiate a hundred bucks or so for lock change/pain and suffering.  I need to make a point, though  especially since you are dealing with a property manager.  There is no such thing as a non-refundable deposit! A fee is non-refundable.  Deposit, by definition, means refundable.  Like @Dawn Anastasi  states, "a non-refundable fee".  Mine then converts to and becomes part of the move-in monies at that time.  No move-in for any reason and the holding fee is forfeited.

As far as I know, depreciation just reduces your cost basis.  The $10k should be the same cost/gain ratio as the rest of the 1031 money.  There is probably a way to make the $10k part of your cost, but I am not that sophisticated.  We're talking about 15% in federal l/t cap gain taxes here.  If you need to net $10k, maybe just take out $11,800 in boot?  Keep it simple.  I don't see the l/t cap gain rate ever getting below the 15% it is today.  Not tax advice.

I'm all about stretching a buck, but have learned with pain and experience that most things that are cheaper on the front end are more hassle than they're worth.   Toilets buy new for sure.  Depending on the extent of your rehab, you can buy used windows, doors, vanities 1st and frame around them.  I love quality mis-tint interior paint and keep a good inventory of that as a LL.  Like @Bill Gulley   states, what is the price range/quality of this home?  Are you doing the work yourself? Are you stretched for time or is this your full-time gig?  Factor in holding costs of a longer project.  Factor in what season your house will hit the market one way vs another.  In my experience, contractors hate dealing with used this and piecemeal that.  They have usually have vendors they like that deliver and good ones will pass along some of their wholesale prices.  Now, if I could only find that quality contractor...

If your new job is in the same line of work or industry as your old job, it should help.  They will need to see more than 2 days in your new job I'm sure!  My guess is 6-months in new job, 2-years in same industry/line of work.  That said, time to get creative if you want to get busy right away.  Get your down payment monies together and find seller financing with at least a 15-month balloon maybe.  I have  a bro-in-law in Manchester that would probably review some proposals you come across if you're in his area.  

@Evan Manship  Here a proper deed involving seller financing is called a Fulfillment Warranty Deed.  Same as General Warranty Deed, but states you have paid off the seller or other private party. The seller actually notarizes it at the time you close the purchase, then it is held by the title co and recorded at time of payoff.

Not a tax pro, but as long as you earn less than $400k/yr, long-term cap gains should only be 15% since you owned longer than 1 yr.  Depreciation recapture isn't taxed differently I don't think.

I had this same thing happen (minus the sister left in the apt) where the poor 91 y-o gal got a little batty and was taken to a convalescence home.  She owed 1 month's rent, going on 2.  I contacted her emergency contact listed on her application and let them know what was going on.  They cleared out her apt for me within a couple weeks and I didn't have to do what would have been seen as a cruel task like evicting her and selling her stuff.  Maybe check with senior services in your area?  Some kind of community action council who could help the broke sister?  Good luck!

Nice find and thanks for the carpet cleaning tip!  This 'removable' smell would be better I would think than cat urine.  Not all smells are bargains waiting to happen.   The cat spray gets into everything and is practically impossible to eradicate without lower drywall removal and subfloor sealing!

Go visit the property at duskish, while still light enough to view initially then as it gets dark. Go see it and let us know what you find!

Craigslist and FSBO sites can be tough to locate a good deal. You need off-market distressed sellers. The websites you may need are local county websites that record notices of default and foreclosure, evictions, dissolution, etc. If a homeowner has the time and patience to put it on the market, they are probably not motivated enough to hit your price points.