All Forum Posts by: Account Closed

Thanks for the feedback @Jaysen Medhurst. I have my old CPA doing my taxes, but he isn't very experienced with real estate so doesn't know as much of the fine details as some here and it's too late to switch this year. Are you positive on the depreciation? The property isn't purely a primary since I am renting some of the bedrooms, and it seemed fairly consistent reading other posts that you could take depreciation, but varied a little on if you have to.

I purchased my first SFH home this last year that I have moved into as my primary and I am renting out the extra bedrooms in the house. I have been trying to read exactly how renting out the bedrooms will effect my taxes and have been reading some conflicting information based on the post so thought I would make a new post with what I currently understand to make sure it is correct.

1. As far as expenses go if I say 1/3 of the house is a rental I can deduct 1/3 of most expenses and 100% of any expense related directly to the tenants.

2. Since part of the house is a rental I can take depreciation on that 1/3 of the house value. From what I understand whether or not I take the depreciation I will have to recapture it no matter what so I might as well take the depreciation. Is this correct?

3. Since this is my primary and is a single family home not a multifamily. If I live here the minimum 2 years and then sell within 5 I can still take the entire capital gains exemption, I won't have to pay capital gains on that 1/3 that was rented correct?

Thanks in advance for the help.

Thanks for the input everyone that helps a lot on narrowing down some areas to look at. 

With Anchorage being a little bit of a seasonal town does that cause an increase in vacancy and difficulty finding tenants looking for full 1 year leases, or is there plenty of year round stuff that it's not a huge issue?

@James Cash For this first property we would be looking for a 2-4 residential to start out then might possibly look at commercial after that.

@Jamie Rose What cap rate are you typically seeing on the different properties?

Hi,

I am looking at potentially getting into some multifamily investing with a friend that lives up in Anchorage. I was wondering if any local investors could share some insight on their opinion of the market there in general and if there are any areas in town you think are great for investing or should stay away from. I was also wondering how much to expect in maintenance on a property up there and a typical vacancy rate to expect when running the numbers on some properties. Also, have all the earthquakes up there caused issues with properties or have they held up pretty well?

@Natalie Schanne Do you still rent that house by the bedroom now that you’ve moved out or just rent the entire place now?

Hi Cary,

I work at a civil engineering firm down by the tech center that does land development engineering for residential and commercial properties as well as survey services. Can you pm me some more details about the project, what you’re needing, and any questions you have about us and I’ll see if we might be a good fit to help you out on your project.

Look forward to hearing from you,

Cody

@James Carlson When and where is that at? And does it cost anything?

You might have some luck renting them out, but for smaller areas you should probably account for slightly lower rent and longer vacancies into your calculations. If it’s a nice lake town you think tourists might be interested in then setting up some STRs with Air BnB might work out great. As far as flipping the homes I would be very very careful, extreme rural communities typically don’t have much price variations between 2 very different properties so can be hard to judge an accurate ARV and comps can be very difficulty for appraisers to find. You also mentioned that the ones that are for sale typically sit on the market for a long time so expect yours to also sit on the market for a long duration of time as there probably isn’t a ton of home buyers in the area.

Is this the property? https://www.zillow.com/homedetails/4717-Eastman-Dr-Oklahoma-City-OK-73122/21958642_zpid/

@Melonie Dickson The sellers of the most recent property I bought also wanted me to waive inspection or they would reject my offer. The solution I came up with that they accepted was I waived all inspection damages under $5,000, but if the inspection found damaged totaling above that I was still covered. They were just worried about buyers nickel and diming them and this showed I wasn’t worried about little stuff, but wasn’t going to take the risk of completely waiving it if it turns out there are major repairs needed.