All Forum Posts by: Alan F.

For a fix and flip, if you had a house with a 12 year old roof, no issues, would you replace it to add more value to the house? It's a 950 sf house with a hip roof, so I think a new roof would be around 5K. Thanks.

Hello BP,

I was just reading a blog post on here about what to ask your contractor before hiring them. I have one deal in progress with an out of state contractor I have never met but was recommended by an agent that I was working with that was also an investor. A few things have gone array (of course) and we were delayed by a month due to a survey and plans not being accepted by the city. I paid up front $20,000 (which is a third of the costs) and I felt this was unnecessary due to no work being done but that was the GC's contract that he sent me. I was going to go get a contact written up by a RE lawyer for future deals so that I didn't pay up front and if they needed materials, I would pay over the phone to the store since I listened to other BP podcasts and they warn about paying before work is done. So I come here to see what others are doing.

When you hire a GC, what red flags should I be looking for (any burned stories?) and do you pay up front "deposit" costs or do you pay for things over the phone and pay labor costs once the work is done? My GC for this project says we are still on schedule but we will see. Just curious and want to hear from others because I don't want my soft costs creeping up and taking from my profits. 

Thank you!

-Ronnie
 

Hmmm, wishful thinking as I don't believe anyone knows how long this will last. I am now finding rental properties that still cash flow even with the higher interest rates. Most investors I know are waiting for rates to go down. I'm finding good deals in the mean time.

If an investor from another state, bought a rental in California using a CA LLC, only God knows why someone would do that, but if they did, would that investor be forever obligated to pay taxes in California even if the property was sold out of the LLC and only other state's properties were bought from then on?

@Alan F. @Anne Donohue Generally, you don't need to wait to purchase the appliance in order to qualify for a tax deduction on the purchase of the appliance. However, you will need to wait until you start renting out the property/are actively looking for tenants (a.k.a Placing the property in service) to take the deduction. This will likely be depreciation, but bonus depreciation and the De Minimus Rule could help you accelerate the deductions.

Finally, when you convert this to a rental increase your basis in the property for improvements that you've made since this isn't included in the original purchase price. 

Sorry, no input on whether or not it is okay to have different colored appliances :) 

*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

I am living in a primary residence house right now with a decent kitchen with all white appliances. I plan to turn this into a LTR in the next 1 year. The oven needs to be replaced now because it doesn’t work well but the fridge, dishwasher and microwave all work fine. Sink is white. I need to replace the stove now. Will it look weird if I have a stainless stove and the other appliances are white? House is in B class neighborhood. 4 BR, 2 BA, decent school district.  Will probably rent for $2500/month. Will it be a problem to have mixed ( white and stainless) appliances? Should I replace them all now in stainless? I plan to hold this house long term as a LT rental. Kitchen cabinets/floors are fine. 

So I was offered a new western deal .. and before anyone says anything. I have read all the reviews about new western so I am aware that I should have avoided them but they made it really easy for me to understand everything and after running the numbers, the deal really made sense to me. Now I never saw this house in person, and I've never done a fix and flip before so I am quite unaware of what to look out for. I've had a contractor give me their estimate and I've worked out the lender fees. Is there anything that I need to look out for that could potentially ruin this deal? I've been saving up for a long time for this and want to minimize as much risk as possible so I would like to be prepared. From past experiences, please let me know what I need to look out for when it comes to flipping a home. 

Hello All,

I'm new to BP, and new to the rehabbing/rental scene in general. 

I'm a residential contractor and I would like for my business to focus on full rehabs rather than smaller jobs for individual customers. It is a move that I have been wanting to make for the past few years, just haven't really known where to start. A recent slow in leads has made me decide that now is the time to move into real estate, my long-term goal.

I am well-versed in contracting, estimating, etc. I am very excited for that part of the process as I will be GCing my houses. My dilemma is this: I have limited capital. I'm not sure how much I would need to cover for the purchase, and I would need to continue paying myself and employees during renovations. I am more than willing to partner with other investors especially for my first few houses. I could take care of all renovations, I just need capital. Is this a desirable situation for an investor? Am I making this move too soon, when I should be focused on building capital?

Any and all thoughts are appreciated. Thanks

I have a perfect property for BRRRR or fix&flip east of Dallas. It will need some structural/electrical/plumbing work that is beyond my abilities. I'm having a difficult time finding contractors. Any suggestions?