All Forum Posts by: Andriy Boychuk

@Scott Limoges

The first book I read was Mobile Home Wealth by Zalman Velvel. I like it. It is simmiliar to Deals on Wheels but Zalman covers mobile home rentals and lease with option to buy.

Now, I understand. Thank you very much.

It is my primary residence and I live here for over 1 year. It means, I do meet all requirements. Is it correct?

I am currently working on one proposal. It should be relevant to this post. After I am done, I will post it here or in fileplace section of BP. The whole idea to find two investors one passive to buy a mobile home (I buy only with mobile homes) and another investor (handyman or contractor) to buy materials and do renovation. My responsibilities should be to find a deal, to buy it, to organize the whole process, to find a buyer, to sell it and share profit between all involved parties.

I found instruction for form 3468. There is explanation for Qulified Rahabilitated Building. Please correct me if I misunderstand something. My comments is bold font.

To be a qualified rehabilitated building, your building must meet

all five of the following requirements.

1. The building must have been placed in service (see

requirement 4) prior to 1936 unless it is a certified historic

structure. My building was build and places in service around 1920. The first requirement met.

2. The building must be substantially rehabilitated. A

building is considered substantially rehabilitated if your qualified

rehabilitation expenditures during a self-selected 24-month

period that ends with or within your tax year are more than the

greater of $5,000 or your adjusted basis in the building and its

structural components. Figure adjusted basis on the first day of

the 24-month period or the first day of your holding period,

whichever is later. I bought my house in August 2012. Renovation started October 2012 and ended February 2013. Cost of renovation is 75k. The second requirement met.

3. Depreciation must be allowable with respect to the

building. Depreciation is not allowable if the building is

permanently retired from service. If the building is damaged, it is

not considered permanently retired from service where the

taxpayer repairs and restores the building and returns it to actual

service within a reasonable period of time. What does "depreciation must be allowable with respect to the building?"

4. The building must have been placed in service before the

beginning of rehabilitation. This requirement is met if the building

was placed in service by any person at any time before the

rehabilitation began. I did not live there before rehabilitation but the building have been placed in service before. The 4th requirement met.

5. For a building other than a certified historic structure (a) at

least 75% of the external walls must be retained with 50% or

more kept in place as external walls, and (b) at least 75% of the

existing internal structural framework of the building must be

retained in place. A and B are correct for my building. The 5th requirement met.

Please correct me if I miss something.

thank you

Steven,

I just face the issue of not able to find enough information about this rehabilitation credit. I found Tax Aspects of Historic Preservation but my property is not historic building. It is single family that I had to renovate to live in it. I did not use architect or engineer because it wan not necessary. However, I used licensed contractor and licensed electrician to do the job. All work was done on banks money (203k loan)

I have two questions

1. Can I apply for the credit?
2. Could you send me link to website or document with more information?

thank you

My personal goal is following.

I live in my primary residence for 1 year and have around 50% equity in it. I plan to start selling the house in Feb 2015 to save on taxes on profit. My plan to buy 2 or 3 family real estate (I did not decide which one exactly yet). I wan to live in one unit and rent 1-2 other units. My goal to live for free or close to zero to be able to save money for my dream house (I want to design and build my own).

I am sharing it just because some part of my goal might inspire you.

Did you consider to buy duplex or triplex instead of single family?

Hello Brian,

I live in NYC as well (Staten Island). I bought my first real estate in Dignmans Ferry PA because I was familiar with the area and real estate in NYC is extremely expensive. However, there are deals as well.

Rochester is too far from NYC :)

Hello Walter,

BP has greater resources section with Fileplace. You can find contracts there.

http://www.biggerpockets.com/files/category/contracts