All Forum Posts by: Edward R.

Amazing!  if you think buying a flip and rehabbing are complicated then wait until you get into the accounting portion.  Determining the many ways to take advantage and properly expense everything can make your head spin.

I bought a house with the intention of flipping in September 2017.  Listed it April 2018 but ended up renting it in May 2018.  

I'm trying to figure out: the property taxes I paid; do they fall under the category of cost basis or an expense?

What about all the mileage when I sought and bought the house? cost basis or expense?

So I met the soon to be renter.  nice people.  lost everything in their house fire.  I think we are going to take the home off the market and rent to them.  The insurance company will pay 50% above what our rental price would have been.  

I am also wondering about convincing them to change the term to 8 or 10 months lease instead of 6.  RE relocation agent kept saying in her experience it will be probably 10 months (don't know why it would be so long).  6 months puts me in November; hard to rent or sell in cold Central NY at that time of year.  so if I could get guaranteed payment through February March I'd be more happy with that.  If clients move out earlier the ins. is still on the hook to pay out the remainder of the lease. 

2nd Question

I'm going to offer to rent as Fully furnished and stocked.  Why have the insurance company pay a rental place to furnish it; a 3 bdrm house.  I'd rather do the same and likely much cheaper than what insurance company would pay. I'm going to offer insurance company 1200-1500 month for furnishing and was told by two people that they pay much more than that.  Does that seem reasonable or too high?

Thanks JeffGates ; well they are two older people about 62-65 and one walks with a cane.  so trashing not too concerned about (always concerned but...)  I texted with a realtor friend and she said she has dealt with this situation and a friend of hers works at FRA (fire insurance place) and stated that yes they do pay out ALOT and I should negotiate a higher rate.  she also stated some pay out 3800-4500 month and it's cheaper than a hotel.  I'd be happy with $3K or so a month.

So Deposit negotiable?  didn't realize it would be, like how much?  I just figured it was standard.  They trashed the place so you kept deposit, did you go after Insurance company for the damage?  The lady I spoke with said the two people would be mye lease people and insurance would pay me directly.  asked about damages and said that you have the deposit and just itemize with that and if it goes over you claim it with the insurance.  Does insurance give much of a hassle on that claim?

My worry would be dog pee on wood floors or carpet.  Maybe I'll find a few spots and then get it all replaced at insurance expense lol. 

Wow.  Just spoke with relocation agent.  She stated the insurance would now be willing to pay $2800 per month, including a one time pet fee of $1400 and a full security deposit.  Also guaranteed now for 8 months and likely renewed for one year.  professional movers move in and out plus a cleaning company afterwards.  Insurance company covers any damages that exceed the deposit.  THis kind of sound like a no brainer. Showing the property tomorrow to the couple.  no reason not to like it unless it's functionally not suitable.  It's fully remodeled, (gutted) new kitchen and bath.  only neg may be the W&D are in the finished downstairs basement (ranch house)  I'm all excited now! 

We are fine with the short term rental 6 months plus.  probably list it for sale after or due rental again (think I found a niche we'd like to rent to)

My rental is 2100 but they came in at $2600 , why would that be?  due to their dogs, expense of short term rentals?    Be nice if they paid half upfront  :o)

Wow.!  Just listed my really nice flip here in the suburbs and having some offer activity.  THEN a  real estate company in  NYC (6 hours away) emails me.  offers me $500 above my $2100 rental listing (I put up for sale and also rental).  I emailed him back and he stated a house fire, 60 year old couple, small dog and cat.  I looked up the fire dept and verified the house fire just happened yesterday and had massive damage on home.  That email also stated lease would be for 6 months guarantee with 30 day notice of vacancy and would want 1-month extensions if needed.  also, stated payment is guaranteed as it is paid directly by the insurance company.

Has anyone dealt with this before? how does that all work?  pros cons?  The house fire is in the same neighborhood too, well one over.

My wifes cousin is from north of NYC and they started doing a business where they furnish a place for victims of burned out homes.  So I'm guess this is something similar?

Damn it.  Really don't want to go much higher $90 maybe.  HEll I didn't pay that much for my last flip that was bigger and better than this one and 5 houses down.

Of course nobody knows how low a REO will go but looking for some insight on offering. It's a 1970 built house, good condition. Had new siding, driveway put, 5 year old roof in about 5 years ago and some new windows. $1400 square feet in a desired area with good school. Its actually down the road from where I just finished up and sold my perfect first flip. Guy bought it around 2012 for $74K fixed it up with stated above plus updated kitchen and new appliances, carpet blah blah blah. Sold it 2015 to a divorced lady with a child who over paid for it ($135K) she lost job then bank took it over and bought it back in March at referee sale for $101K. Bank is asking through a out of town realtor $120K

Previous owner removed all appliances, carpet needs replacement, new trim, new furnace, hot water a few new windows, new countertops , new 2nd bath.   Ppersonally, 120K way too much, bank foreclosed amount was $145K  Listing realtor description states TLC on the property; that's laughable.  I'm thinking of buying it for a rental.  My offer is probably going to be $82K.  In my eyes it needs about 20K done to it.  Does my offer number seem unrealistic?  Rental values in the area are typically $1700 for a home and fixed up and sold maybe $140-145K or so.  my recent flip is probably the highest the neighborhood has had in many years, but that home turned out great, more space.   

So one of the windows in the property I finished has a broken seal.  I'm technically the third owner.  it was replaced about 10 years ago. It's an Ultimate 2000 window made by Alside.  I called them locally and he stated they are just the distributor and he can give me a name of a contractor to get a window replaced. HE said fist to try it under warranty  with Alside  They denied it based on third owner.  I have the serial number of the window and such, I don't need a contractor, just order me a damn window.

How do I get the "privilege" to order from distributors?  

My experience with them was very smooth; I'd deal with them again in a heartbeat.  No delays, and questions were answered quickly.  We were happy with the outcome.