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All Forum Posts by: Account Closed

Account Closed has started 2 posts and replied 5 times.

Post: Second Home investment. Need advice.

Account ClosedPosted
  • Posts 5
  • Votes 4
Quote from @Nathan Grabau:

I am not a lawyer and this is not legal advice, but it is pretty normal for people to change there mind without getting in trouble about a property that was going to be a primary that they are now choosing to rent. Your intentions when you took the loan out are important here legally. It is worth trying to find documentation, such as an email the property manager you hired asking them for help until the current tenant moved out.

If I were you I would contact your loan officer and ask them for advice. The 1099 should not impact you as have already told the mortgage company what was going on, and you were not deceitful with them. The 1099 does not invalidate your story of "we could not get the tenant out as fast as we had hoped".  

Your mortgage company's reaction to this though seems weird to me. It really is not in their favor to make the transaction, especially after it has closed, this complicated. 

I would also recommend being very careful in your communications. It sounds like you are okay, but if you did intend to use a personal residence loan for a property you did not intend to every be a personal residence, it is in your interest to lawyer up and be careful as to not incriminate yourself.  

 Hi Sheena,

Thank you for your reply.

They audited me before, during my first month, because the tenant wouldnt leave, so they thought I was committing mortgage fraud.  Now thats over,  I still want to keep my PM, but im scared they look at my taxes and see that I was an issue a 1099 and rental income for the year.

Post: Second Home investment. Need advice.

Account ClosedPosted
  • Posts 5
  • Votes 4

my original goal was to rent it short term, because I knew I only need to stay there for 14 days out of the year. 

Post: Second Home investment. Need advice.

Account ClosedPosted
  • Posts 5
  • Votes 4

Hi there,

I would like to get some advice on this situation I was in.

I bought a second home out of state with a previous tenant attached during covid. 

That tenant had some issues and couldn't move out on time. The mortgage company decided 

to contact me and ask my reason why and if I am committing fraud. I told them the situation, and

they understood. So during that time, I decided to get a PM to help get the tenant out.  Couple months 

later,  the tenant finally moved out, and  I can move in.  

Now I realize that the PM will give me a 1099 for rental income which means it would affect my second home right?
my CPA said if they decide to audit my taxes they will see that I made rental income and possibly try me for fraud again, she also advise me to get rid of the PM.
I feel bad because they have been doing fine work and already found someone to replace the previous tenant. 

my original goal was to live in it for a couple of months, then take it into an investment home later but now it just seems a bit out of hand.

I know I should have just gotten through with an investment loan instead, (lesson learned) but now I just need advice on how to fix this situation.

Post: Just bought my first property!

Account ClosedPosted
  • Posts 5
  • Votes 4

Hey Billy,

Thank you so much for the reply. I am definitely taking it all in.

I am trying to buy a property a year, are there ways we can find realtors or others that are like-minded?

Does anyone mind pointing me in the right way?

Thanks

Post: Just bought my first property!

Account ClosedPosted
  • Posts 5
  • Votes 4

I was learning so much from the podcasts and other real estate groups that I went to buy my first property in Spring Tx.

My real estate experience is roughly 3 months. I am learning as I go. I would love to hear some tips from the community or if they can help me answer a few questions below.

- What should I expect to do after I purchase it?

- When should I get my next one?

- Should I look for a good CPA? and which criteria should I go for in finding one?

- Should I get a property manager / or do it myself?

- Should I look for a mentor? 

Appreciate all forms of help!

Below is the property I bought

3/2 SFH with 18k down, and an 8.6 cap rate

Thanks,