All Forum Posts by: Bryce Till

Proud to be a part of it Mehran. IMO, most meaningful takeaway is that everyone is benefiting from this process. Kudos to all of you and your hard and honest work. I look forward to the deals to come. 

Welcome Dan, love the goals listed. 

Taxes are great in SLC and code is very business friendly. However, prices are high enough that for 1% deals you have to be looking in the right places and have to get pretty creative. 

@Brandon Hall what about the sq ft of shared space? Such as one kitchen and living room that is shared between s owner and tenant? Can that % be included in deducting expenses/rehab costs? 

Keep in mind the tenant is actively paying for and using that space.

Thanks @Enoch Mills good advice. I'll be using a CPA, but want to save him as much time as possible, plus learn as much as I can for myself. 

@Paul Timmins Great comment Paul. Im going to try your little tip tomorrow. Cheers. 

BP, 

I live in Utah and wanted to get some opinions and insight for the below inquiry  I will have to include rental income from my spare room in my primary residence. I want to know how this will look on my income return and what I can deduct/expense against the rent.

For 2014 I have the taxable “Net Income”  from the rent calculated by the following:

67% of my primary residence is used/shared by tenant.

Total rent proceeds - 67% of monthly expenses - 67% of total rehab costs = total Net Income

Is this the correct way to report the rent proceeds from a spare room in my primary residence?

Can I deduct the appropriate % of sq feet shared of expenses associated with my primary residence (HOA, utilities, Comcast, etc…)?

Can I deduct the appropriate % of sg feet shared of all rehab costs that were spent in 2014 (new floors and paint)

Thanks,

Bryce  

Quintin, 

Give me a PM of where you ended up buying a condo. 

I just installed this flooring in my personal residence:

1. http://www.lumberliquidators.com/ll/c/Warm-Springs...

I installed it myself without too much trouble and it looks great. Supposedly very durable as well (we will see).

If you're going to live there for two years, It might be worth going with expensive paint and installing flooring that  you actually like  (laminate or hardwood). 

Bryce 

BP, 

I just bought "The Book on Estimating Rehab Costs" by J Scott.

What other RE books would you recommend that discuss estimating rehab costs? 

I realize that most literature on this subject will relate to flipping, but I'm mainly interested in resources that discuss the process of effectively identifying and estimating accurate rehabs costs for SFH rentals.

Thanks, 
Bryce 

It's takes risking money to make money. An easy and comfortable (less risky) investment will almost always yield just a comfortable return. A good investment both in the stock market and RE investing is one where you believe you have an opportunity for an exceptional return while clearly identifying the level of risk. Meaning if everything goes wrong, what is the worst case scenario? Already BPers have chimed in above with tips to help identify/mitigate the worst case scenario risk associated to REI investing. What I think is nice about REI compared to stocks is the catalysts that make a REI a good risk/reward investment are way more tangible than equities. Meaning you can actually meet and vet out great tenants compared to trying to determine if a CEO actually knows what he's doing. If REI was easy and comfortable everyone would do it...