All Forum Posts by: Costin I.

Get the latest edition of Nolo Landlords Tax Guide book and read it (http://store.nolo.com/products/every-landlords-tax-deduction-guide-dell.html) - regardless which route you chose (plus you'll know more than many CPAs about the subject). Or find one that knows real estate investing. Unless you get into fancy stuff and many rentals (3+) you should be able to handle it with TTax Premier edition.

Even with a CPA you still need to know to ask the right questions, provide the correct information, and "guide" them into helping you with the taxes (and counting all possible deductions in the right way). Think of the CPA as just a tool - properly used is going to return you the investment you make when paying them, but they are not going to do the "work" for you, just the tax return (and there is more to taxes than the April mad dash to file it). Just my 2¢.

Get this book and read it (http://store.nolo.com/products/every-landlords-tax-deduction-guide-dell.html), and you'll know more than many CPAs about the subject. Or find one that knows real estate investing. Unless you get into fancy stuff and many rentals (3+) you should be able to handle it with TTax Premier edition. Just my 2¢.

You can start renovations as soon you desire and they let you. But any deal can fail for various reasons, up to the end signature at closing, so I would advise to wait for that. Otherwise, you might be doing work for someone else benefit. If you still feel inclined to do so, I also have a long list of tasks for my home :>) But for sure, you can do planing, line up contractors and materials list, etc.

You can have a tenant occupying the property and do repairs and renovations as long they are allowing that to you - you can't impede on their use and enjoyment of the habitat. But that is the preferable scenario, as any work done before putting the property in service (making it available for renting, and you'll need the proof for that, the ads, etc., or the tenant in place lease agreement) is considered capital improvement and goes to the base of the property (consult a CPA for details, or at a minimum read Nolo's Every-Landlords-Tax-Deduction-Guide - https://www.amazon.com/Every-Landlords-Tax-Deducti..., money well spent for a book). With a tenant in place, much of the work can be considered repairs as long it returns to the original house conditions (careful how you formulate your work plan and invoices from contractors, read the book for details). Otherwise, it can be considered capital improvements deductible over 27.5 years.

Cash out refinance might have more to do with the appraised value of the house and the loan to value ratio, than the tenant presence. You need to talk with a lender, preferably one that specializes in refinancing of investment property and who knows to take in consideration the rental income.