All Forum Posts by: David Roberts

This helps tremendously @John Leavelle  -  Thanks!!

Hi BP,

I'm in the process of purchasing with cash my first rental property and am planning to use the Brrrr method.  Some of the dots I am trying to connect for my analysis are how the refinance step impacts the depreciation of the property and if there is any strategy to the timing of that as we approach the end of year.

Question 1

I understand that my depreciation is calculated against the improved value of the property.  Once the refi process is finalized should I expect there to be parity between the improved value figure that the lender assigns and the improved value figure that my county auditor assigns?  ..and if not which figure is used for the depreciation formula come tax time?

Question 2

Assuming I decided not to use leverage on the equity of the property and continued to operate the rental and rehab with all cash - Is there a method to get the improved value of the property reappraised post rehab to enhance the depreciation opportunity?

Question 3

Is there benefit to sneaking in an appraisal before the end of the calendar year?  i.e. can the improved value of the property based on a reappraisal that occurred on 12/31 be used for depreciation purposes over the entire calendar year?

many thanks!

-David

Hi Ed W. I would like to join.. What time does this happen on the 16th and which Tommys location? Take care -David

I'm curious of what the projected depreciation opportunities with this property might be and whether that is something the more seasoned investors in these tight markets consider in their analysis?

Ben Leybovich Any tips on how to best identify these multi generational properties?

Yeah, but Matt Abi is currently renting at $1500-2k/mo and wants to househack - right? If his new multi doesn't cash flow and even goes negative as he projects at $500-1k he still gains an asset, experience, tax incentive, and improves his current housing cost ROI which today is nothing. If this all the market allows his plan still beats renting..

@Paul Allen - Thank you for the timely and thorough response (Go Bucks!!).  This is great dot connecting info, and exactly what I was looking for!

How formal of a process is it to declare the "placed in service date"?  Is the simple act of listing the unit as available for rent sufficient?  If so - is there a recommendation on how to best document that for my tax records?

Also.. Is it possible to owner-occupy post in service date for a reasonable amount of time until you have a tenant in place?

Hi BP, I'm an aspiring REI from Columbus, OH preparing to make my first deal and this is my first post :) I've owner occupied a SFH in a high-appreciating neighborhood of Columbus for the last 6 years (Clintonville). I'm ready to turn this property over and use those profits to start investing in buy/holds in and around Columbus. I've identified House-hacking a multi family building up to 4 units that needs some rehab with FHA financing to be an ideal first move for me, but am also considering cash purchase of a Multi or SFH to do a live-in rehab which I would later refi and rent out. In all 3 strategies I have the same question for those of you who have done this before - and it's related to taxes: ...are there any rehab timeline strategies you employ to best leverage your tax responsibilities in these types of deals? Are there any repairs/improvements that it would make sense to complete AFTER you have a tenant/lease in place? General example: Placing first tenant in December, but waiting until March to install or service the AC unit. That kind of thing... -David