All Forum Posts by: Bill B.

No problem. 

If you “expensed” the $50k and took it off your taxes already your profit is $100k. 

If you’ve been amortizing the $50k, whatever percent left is added to the cost. 

I assume this is a rental you’ve had for years not a flip you just bought which doesn’t qualify for a 1031 and is taxed much worse than investment property. 

Assuming it’s stucco sided, tile roofed, with a no maintenance yard, and doesnt  have a flat roof. I would say 90% chance you’ll have tax free income from a property like that. You may or may not have any cash flow but if the alternative is doing nothing you’ll probably be ahead. 

I’d ask for current length of stay for the current and last 3-4 tenants. Is it a few months or a year max kinda place, or a place people move in and stay years as it’s the best option they have in the price range. 

I assume your mortgage payment has insurance and taxes included, if so that’s a cheap property for Vegas, if not...oops. :-)

Ps. What’s your current living situation? (Renting our own or live with family?). Would you be willing to live there if you’re currently renting/living with family? You’d get better rate and terms and your net rent loss would be small. 

Anyone who makes any income from real estate by default takes advantage of it. As you are required to take it or the irs will just pretend you did anyway. 

If all your real estate is losing money (not just cash flow but actually higher expenses than income) and worth less than you bought it for I guess you’re not, but that’s not really investing. 

In Nevada the bank only cared about net to them amount, they didn’t care if it was cash or loan. Every offer was countered with their standard form. You could put no inspection and it wouldn’t matter, because their counter would say you have 7 days. but you also couldn’t offer more and then ask for certain costs to be covered because they also “rules” about what costs they would cover.  (If you offered $500 more and then asked them to cover the $500 appraisal fee they would say no.

That's also the difference between fourplexes and SFR. In Vegas I raised rents all through the "depression/recession" for single family homes.

People losing their homes had zero desire to move back in to an apartment.

We offer 2-3x the space, garages, yards, no shared walls/fellow tenant drama, and in home laundry for a few hundred more than an apartment and less than ownership costs for the people that only put down 3% on a 6% loan. 

$220k townhome $850/yr

$270k SFR $1500/yr

$370k SFR $2200/yr

All non-homestead rentals

$450k homestead SFR $2000

There’s no positive to adding yourself to the loan. Huge negatives to adding yourself to the title. 

IMHO there’s no need for the trust as long as your mother is fine with you inheriting the house. If WA is a community property state she may have a vested interest in the property and need to sign off on the transfer.

A bank CAN call a loan due when the current payer dies, they USUALLY don’t. it’s bad press. As long as payments are being made on time  

This transfer on death is automatically, I set one up for my mom to avoid probate which can be lengthy and expensive, without making the horrible mistake that so many seniors make putting their children on the title before their death. (Thereby owing capital gains taxes when they sell instead of getting a stepped up basis. )

Ps. This procedure is completely reversible and changeable until the current owner dies. 

So you’re pissed off that the Zestimate was $75k at the time you bought it when It was really only worth $20k? I mean obviously it was waaaaay too high back then or you would have done nothing to the house and relisted it for $70k.