All Forum Posts by: Ray Slack

Ok.. I have a Primary residence that I'm turning into a rental in 2021. I have not paid my property taxes for 2 years and now 2021 are due.  They are about $9,000 per year.  I owe $27,000 total.   I'm thinking I should take the standard Deduction for 2020 and then pay the Full $27,000 in January 2021.. I'm assuming I can itemize in 2021 and then deduct the full $27,000 from my 2021 taxes since the property will be converted to a rental property in 2021.  Am a missing something with the strategy? Should I be able to deduct the whole $27k in 2021 when the taxes are paid even though they are from prior years since the property will be a rental  starting jan  2021? 

Baltimore is an amazing market to Brrrr.. Some still even consider it Maryland.  I realize Southern PG county is far from Baltimore City but I invest there and I'm in Bowie.  I also have rentals in Bowie but the return isn't 1/2 as good as Baltimore.

Do what you have a passion for.. I can't tell you how many friends just went for the $$ degree.  

My best friend loved cars and his family owned car dealer lots.. They always wanted him to become a doctor as no one in the family had a college degree.. He spent 8 years in school and became a doctor. He HATED it and couldn't stand going to work every day even though he made $100 per hour.  He quit and went into his family's car business which he loved.   He basically wasted 8 years of his life and ended up with a $250,000 student loan to pay off. 

If you know you don't have a passion for a career. CHANGE your plans..  

Personally I went to school for 1 semester always knowing I wanted to be in Real Estate. I dropped out and figured I would spend the money I was paying for college on Self Help books and Real Estate Books. I then started selling real estate then got into Flipping Homes and investing..  I love it.. I don't even feel like it's work and wake up every day super excited about finding new deals and improving the property that I have.  Real Estate branches out into my different areas too.. I owned a construction company and just bought a 40 acre campground RV resort with 120 RV spaces. (Like having 120 small rental properties all in one place)   

Figure out what you have a passion for and work in that field. 

Thanks @Chris K.  That explains a lot and was pretty much what I thought. They are mining coal on an adjacent property to mine so I was a bit concerned.  IF they did come in and claim the coal rights would they need to leave my property intact? or could they just destroy the surface of my property to get to their coal rights?  When renovates are completed I'm going to have about a million dollars in improvements to my property.. Doesn't seem like they could just come in and tear that up..

I'm buying my first property in PA  (40 acre campground) and the title commitment contains the language below

in the exclusions. Does this mean someone with prior coal rights can just come in and mine the coal under my 40 acres and destroy my campground in the process? Is this standard in PA title exceptions?  

Any help from my PA bigger pockets family much appreciated.

Ray

(Cut from Title Commitment Schedule B-II exceptions)

11. Coal and coal bed methane gas and mining rights and all rights incident to the extraction or development of coal or coal bed

methane gas heretofore conveyed, excepted and reserved by instruments of record; the right of surface, lateral or subjacent support;

or any surface subsidence.

12. NOTICE: THIS DOCUMENT MAY NOT SELL, CONVEY, TRANSFER, INCLUDE OR INSURE THE TITLE TO THE COAL AND

RIGHT OF SUPPORT UNDERNEATH THE SURFACE LAND DESCRIBED OR REFERRED TO HEREIN, AND THE OWNER OR

OWNERS OF SUCH COAL MAY HAVE THE COMPLETE LEGAL RIGHT TO REMOVE ALL OF SUCH COAL AND, IN THAT

CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, BUILDING OR OTHER

STRUCTURE ON OR IN SUCH LAND. THE INCLUSION OF THIS NOTICE DOES NOT ENLARGE, RESTRICT OR MODIFY ANY

LEGAL RIGHTS OR ESTATES OTHERWISE CREATED, TRANSFERRED, EXCEPTED OR RESERVED BY THIS INSTRUMENT.

Note: This Notice is set forth in 52 P.S. 1551, as amended, and is not intended as notice of unrecorded instruments, if any.

Sorry posted in the wrong area and don't know how to delete this post

Looking for and analyzing deals is probably 80% of my time. The other 20% is overseeing existing projects.

Did you ever get insurance?  I just bought a campground Rv park and am curious of your issues/adventures with getting insurance.  

A google search of campground insurance comes back and pages of results. 

What obstacles have you faced? What do they not like?  Pools, lakes? 

Have your realtor pull the comparables for the condo building..  and surrounding buildings.  You need to know

1. What units sold

2. The date of the sale

3. The square footage

4. The sellers concessions.  That is seller paid closing costs for the buyer.

5. HOW long the unit was on the market and if there were any price drops while on the market. 

Tell your agent you want to sell ALL the sales . Not just the ones he thinks support the price you are paying. Many agents will leave out sales significantly under the price you are paying so that you think you are getting a deal. 

Then you will know for sure you are not overpaying for it. 

As far as paying cash or getting a loan..  If you have any kind of investment knowledge or have a financial planner they will tell you as I am telling you.. GET A LOAN!! interest rates right now are 2-3% which is the lowest rate in my lifetime.  Any decent investor should be able to earn 5% return on their money.. So, keep your cash and invest it and use the banks money at just 2%.  

If you are renting out your home in Mass, the florida Condo would be your primary residence which has some advatanges.

1. No state income tax in Florida.

2. Better interest rate on FLorida condo mortgage since it would be your primary residence as opposed to a rental or 2nd home. 

I will say also that if you have a lot of equity built up in your Mass house check the capital gains laws.. If you sell it within 3 year of moving out you can still get the capital gains exclusion of $500k for a married couple. ( you must have lived in it for 2 of the last 5 years) If you have a lot of equity this can be a HUGE tax savings you don't want to lose. You can move back in it later and live 2 or more years to regain the CAP gains exclusion before selling also.

I have a rental questionnaire that asks if the tenant has any Pets, Any Service animals or any Emotional support animals that will be living in the property. The tenants sign the application states that everything is true and correct under penalty of perjury.  I understand all the laws and rules for ESA and service animals. My question is if a tenant fills out an application and lies about having an Emotional support animal then I later find out after accepting their application they do have an ESA can I reject them as tenants for lying on their application under penalty of perjury? I would not deny a tenant that has a service animal or a ESA but I feel that lying on a legal application that clearly states it's under penalty of perjury is clearly someone I don't want to be in a business (landlord/tenant) relationship with.