All Forum Posts by: Frank Z.

I'm in the Atlanta area and I got a quote from AquaGuard today for fixing the foundation of a house I'm interested in purchasing and it came out to $26,000. House is in pretty good shape outside of the foundation issues. 

The house is on a hill and the part on the lower side of the hill is sinking into the ground. So far it has sank about 2 inches at the worst corner.

AquaGuard recommended putting in about 18 piers as one side of the 3,100sqft house needs to be jacked up. Is this price reasonable? 

My partner bought two duplexes and we want to transfer them into an LLC that we own together.

He got a cost seg study when he owned it by himself last year. Does the Cost Seg Study transfer into the partnership?

Dang, it sucks to hear that. 

I would think they would at least be partly on the hook. I have proof that they listed the property incorrectly. Does that not count for anything? 

@Nick Fitzpatrick That's the first place I went. Broker is not sure what to do in this case. She has never been in this situation before. Wanted to get some outside opinions.

Hi, 

I am my own real estate agent and I recently got a property under contract. The description the selling agent added on the MLS said the property was rentable via Airbnb. When I asked for the bi-laws he dragged his feet. I had to do a bunch of work to get the HOA bilaws on my end, the manager of the HOA has a phone that has been disconnected, turned out the treasurer was running things for the most part and she provided bi laws after the discovery window (though these were requested within the window).

I was paying a premium because the listing was advertised as AirBnB friendly, now the property does not make sense at that price and they are not open to renegotiate. I explained to the selling agent that had they not advertised it as such, or been more helpful during discovery we wouldn't be in this situation. 

The selling agent says because the GAR (my MLS board) states in the contract that: "

Section B. Paragraph 10. c. "Disclaimer: Buyer and Seller have not relied upon any advice or representations of Brokers other than what is included in this Agreement. 

He is totally absolved of the fact that he described the property incorrectly. Is that true? My inclination is to take him to small claims court the $2,000 deposit plus the $535 appraisal fee. 

Any advice would be greatly appreciated!

Bump. Would love to see some recommendations.

@Dmitriy Fomichenko I'm not understanding the 43k? The total allowable across all plans is 56k. 

You covered the 6k as an employee and the 13k I would contribute. 

But then I also contributed 4k through my employers match. Doesn't that leave only $33k before I hit the 56k limit. 

I checked the website you sent but am still not understanding how you got to $43 and I'd love to know of a way to get an extra 10k in there.

@Dmitriy FomichenkoSince you're the expert, could I run some numbers by you?

I currently contribute about 10k to my W2 employers 401k because I don't want to give up the free money on the match. Call is 6k from me, and 4k employer contributions. 

The way I understood the Solo-401k was that I could then contribute 100% of my income up to the 19k individual 401k contribution limit. Since I already contributed 6k that would leave an additional 13k. 

To max out the 33k remaining employer contributions (37k minus the 4k already contributed), I would have to take a salary of 132k because only 25% of my pay can be employer contributions. 

So total salary paid to me through the property management LLC would have to be 132k + 13k = 145k. A little lower than the 150 because of my contributions with my current employer. Is that in line with what you were thinking? Thanks in advance!

My business partner and I are both W2 employees for large companies with good salaries. We've been in construction / renovations as a side hustle going on two years now and we are looking to do something like this:

Start a holding LLC. We plan to buy properties in this holding company that are in need of repairs and then aggressively use accelerated depreciation to create deductions early on to offset as much W2 income as possible.

A second LLC partnership as a management company. Ideally I would like to use this company to pay salaries to my partner and I in a way that would benefit from the 20% pass through deduction. A Solo-k would be started for this company and enough properties would be managed (over time) by this entity in order to max out the Solo-K contributions for myself and my partner (up to 55k/yr/each).

The Solo-Ks would use the 55k of yearly tax deferred contributions to buy more rentals using 20% down-payments (or as little as the bank will let me put down without going below 20%, don't want to pay PMI) and would be exempt from UDFI taxes. This would allow for all rent and appreciation of the properties to be 100% tax deferred.

Is all of this possible? I have concerns about minimum alternative tax and soooo many follow up questions. I'm hoping I find a CPA who is comfortable enough with this landscape to either guiding me along this path or help course correct and keep me out of trouble with the IRS, lol. 

Any advice or CPA recommendations are greatly appreciated!

Oh, I didn't realize that. I will reach out. Thanks for the heads up.