All Forum Posts by: Dennis Kronenwetter

@Steve Vaughan yea I guess I should have done that. Every property and issue we run into is just a way of learning experience. A new check box to mark for the next house I look at. 

@Steve Vaughan they do have a disclosure form to fill out. However, there are three answers for them to use: Yes, No, No Representation. Of course they used No Representation as the answer. 

@Russell Brazil @Michael Noto I know it will probably be impossible to prove they knew. 

The washer was how I came across the issue initially-not the source of the leak. You both are correct that they may have never known about the washer drain clogged. The main issue I am trying to resolve is the leak. Two separate issues had arose. The clogged drain pipe lead me to have a plumber come out for that reason. He then told me I had a bigger issue which was the leak Most likely in main line from meter. 

I would have found the leak eventually once I got the water bill, which I recently got on Friday. The city is investigating the water usage and I guess that would determine somewhat if the seller had at least one bill of high water usage during the months of ownership. When you go to the water meter you can hear the water passing through even with nothing on in the house. 

So should I hold inspector accountable? They claim to have a *limited repair reimbursement guarantee* for anything they checked off as satisfactory on this inspection report. 

Yes I had an inspection prior and there  was plumbing work for seller to redo under craw space, and then we had re-inspection. I do not believe it is common for inspectors to check laundry drain pipe, especially when no washer is available to test. It will be a mental check for me going forward. 

I believe it should be a check for inspectors to listen for running water at meter. But may not be something commonly checked either. This will be added to my personal checklist going forward. 

Hello BP Community,

I closed on my first rental property about a month ago. The house was sold by a flipping company. Everything was great and exciting at the beginning - and then....

After buying the washer and dryer for the home I tested the washer out by running a cycle. When the water started to drain I quickly realized the down pipe was clogged about 3 feet down causing water to shoot back out like the Bellagio water show in Vegas. I tried fixing myself but quickly realized it was clogged with dried up dirt/mud. I called a plumber to come out to see about repairing since I had a tenant and I did not have the time that week with work to do myself. 

Plumber came out to say the entire plumbing system was done incorrectly and there is also constant water running through the meter (even though nothing was turned on in the house). He was unable to find the home shutoff valve to determine if it was the mainline under yard or under the house leaking. This was about a week ago and I have now received Charlotte, NC Water bill showing ~39,000 gallons of water for a awesome value of $550. Plumber said it would be roughly $4300 to replace plumbing under the house and $1300 to repair mainline (if that is leaking).

BP, has anyone run into this situation before? Can I hold the flippers/sellers accountable? I have Charlotte Water investigating to hopefully forgive the high bill. I am betting this seller knew of the water issues and checked "no representation" on the disclosure forms. 

Thanks for any advice!

@Kevin Stringari Hi Kevin, recently came across this post. I know your post was 7 months ago, but do you have any of those listings still available. Feel free to DM me. Thanks

Thank you @Natalie Kolodij! That definitely helps. To clarify a little further, does that mean for the utilities and such I can deduct those expenses even when not occupied by LT tenant or inbetween Airbnb resident? Of course, by the proportionate amount between how much I occupied and rental space.

Also, to deduct things such as furniture and decorations needed to host AirBnB (startup costs), does the dates of purchase/receipts have to show a time period after AirBnB is active. Reason I ask is because if I list on AirBnB with no furniture in pictures, who would reserve it!

Hello everyone and thank you for any input you may provide. This may be a long shot and I know eventually I will need to speak with a CPA, but figured I try to learn as much as I can now.

I am closing on a rental property October 19th and took advantage of the Owner Occupied loan to get the loan down payment and interest rates. I plan to House Hack (since I must stay for 1yr) to cover the expenses of owning the home and also because I have an apartment I am leasing at the same time.

My question is in regards to tax strategy. I believe I have a good foundation so far from researching but wanted to ask for help. I have two options to go with:

1. AirBnB the other two bedrooms

2. Long term rental the other two bedrooms

To make the most out of the tax filing situation with the given amount of time left in the year, how can I go about deducting and expensing...

1. I have read/heard I can expense and deduct a proportionate amount based on the room I occupied and the rental areas of the home. The main question is, does it make sense with it only being a couple months left of the tax year since I most likely would then not be able to itemize on personal level.

2. Also, as I understand, as long as the property is "in service" or actively looking for tenants I can write off the proportionate amount of expenses such as furniture, supplies, kitchen, etc. When actively looking for tenants, can that mean as simple as posting the house available on AirBnB? 

3. I've read multiple places that seem to contradict when I can deduct such expenses such as PMI, home owner insurance, utilities, security system, etc. If the home is listed on AirBnB or Zillow for rent (LT or ST rentals), can I deduct these expenses even during vacant times at the proportionate rate?

Once again, thank you for any help you can provide! 

New investor as well. Looking to network and gain additional knowledge. Closing on a property in a couple weeks! Looking forward to meeting everyone.