All Forum Posts by: Adam Barr

I live/work in Honolulu, HI, but I own a single-family rental in Newport News, VA. The property is near to extended family, and I want to kill two birds with one stone later this year and visit the property (for the first time in 18mos) as well as see family around the holidays. The property is under management, but I have a few things I'd like to check on personally.
I want to get a clearer idea of what travel expenses I can write off, but I don't want to get into a gray area of risky tax practices, so here's my question: If I'm in town for a week, can I treat the first three days as a work trip and the rest as personal time, and write of the airfare and business costs with confidence that I'm not muddying the waters? Do I need to establish certain facts or circumstances to make sure the facts are clear in the event of an audit later?

Thanks @Colleen F. and @Marcia Maynard! I'm getting quotes from two different companies. Right now the age of the structure is complicating things... because the substructure of the roof is not sheet plywood...it's beam-and-board construction which presents a much greater possibility of the bats finding their way in again via alternate routes. 
Apparently common Brown Bats (most prevalent in North America) are relatively easy to evict, but Brazilian/Mexican Free-Tail Bats are very persistent and will attempt re-entry over a period of weeks! 

Thanks @Stanley Parsley. 

Preliminary assessment is that the job will involve:

1. Ousting the bats and re-sealing/re-capping the chimney and collar

1a. Man-up lift rental to access the chimney exterior w/o damaging the slate roof.

2. Guano removal in the chimney and attic

The fireplace has a gas insert, but the chimney stack is 94 years old (historic structure). According to the technician who looked at it (as reported by the property manager), the amount of guano in the chimney raises inhalation concerns...which makes me nervous about lighting a fire to oust the bats.

I'm still researching options to remove the guano from the chimney and attic. Right now it sounds like it may be a coveralls/mask/HEPA-filter vacuum job. Certainly a bigger headache than I'd wish on anyone. 

The whole thing seems like the sort of job that needs to be done right (even if it's pricey) rather than risking a re-occurrence. I've been told the bats are pretty persistent in their efforts to return to the roost.

My property manager contacted me yesterday to tell me that I have a colony (20-30) Brazilian/Mexican Free-Tailed Bats living in the chimney of my rental property. The house is an historic property and I'm told that they're accessing the chimney/attic via crevasses in the chimney. The roof is slate, with a steep pitch. 

Basically all the circumstances are that this is going to be expensive and difficult to resolve. Anyone else dealt with something like this?

@Erin Monday, 
It all comes down to what your personal priorities are. Some people want liquidity and leverage, others hate paying interest and don't want debt on the books. If you're more concerned about what you can accomplish now, then deploying your money today is an effective strategy. If you place a higher value on the equity in that home (you intend to keep it indefinitely and want the stability it will bring to your life) then pay down the mortgage. Dollars are not intrinsically better than equity--to say so is an opinion.
There is sometimes an unspoken implication in these forums that we all have to get to millionaire status by age 35 or we're suckers. Investing happens in a thousand different ways, at different speeds, and with different levels of risk attached. 
Read, read, read, and then decide what your priorities are (i.e. owning this house free and clear ASAP, or boosting other investment vehicles ASAP). You will reap the benefits and/or consequences of your decision, so make the decision that suits your life goals.

@Jim Hartmann, my mortgage was sold to (now held by) Wells Fargo, where I also have a token secondary bank account. As a result of the single company, both my accounts show side-by-side online. Every time I make a payment on the mortgage, I have the option, with about two mouse-clicks, to designate an additional amount (principal only, or escrow if I choose). It's really handy. I try to allocate a small extra amount each time I pay the bill--right now it's averaging out to about 14 payments in 12 months. If my budget is a little tight in any particular month, I can skip the extra payment if needed. 
Its a great way to build equity faster... just know the terms of your loan (i.e. no early payment penalty).

Thanks Linda! Unfortunately, that doesn't apply to me right now, but I'll certainly keep that in mind for the future.

Thanks @Kevin Hunter! That's kind of what I thought, but I wanted to validate it via the community...and make sure I wasn't missing any important clauses or stipulations. My thought is if the original purchase were structured properly, there would be no need for a second purchase (which might trigger a new 12-month occupancy requirement).

Assuming I need a second name on the loan to allow someone else to occupy, I need to do more research on what it would take to remove that other person from the loan later (ASAP after the 12-month occupancy is fulfilled). I don't want to be shady, but the sole purpose of the second party would be to fulfill the occupancy requirement--my ultimate goal is to retain sole ownership of the property over the long term.

If removing a second name from the loan required an outright sale, I'll need to figure out a way to structure that transaction to avoid borrowing from an institution which would trigger the occupancy requirement (private money lender?). Not sure if there's a way around that though...

Hopefully someone else out there has stepped through this process and can share their firsthand experience.

Hi, I'm new to BP... still very much in the "gathering information" phase as I learn about real estate business models and investment strategies. I'm active duty military, and any near-term investment strategy I pursue will be long-distance because I don't want to invest in the market where I currently reside.

I know there are many ways to invest in real estate, and the House Hacking strategy appeals to me on many levels... but the requirement to live in the property is an obvious obstacle to me for the reason mentioned above. So here's my question:

Is there a legal way to House Hack by proxy? If I have the financial means to purchase an asset but lack the geographic proximity to live in the property, is there a way to structure a partnership to leverage the advantages of House Hacking and fulfill the residency requirement on my behalf?

- Could that look like me financing someone else's purchase and then buying the house off them after 12mos? If that's the case, how involved does the "second purchase" need to be to keep things on the up-and-up? Could it be a token sale to transfer ownership on paper, or would it have to be a full-fledged sale to avoid flirting with fraud? 

- Could that involve co-signing a mortgage (or something like that) with someone else who fulfills the residency requirement? If that's feasible, I imagine that might look similar to having a resident property manager (in the case of a multi-family property). Thoughts?

Please throw spears, pick this apart, and help me understand the details of this strategy. As mentioned, I'm very new to all things REI-related; just trying to wrap my head around concepts and find ways to apply principles to my specific circumstances. Thanks in advance!