All Forum Posts by: Gary F.

Those book sounds great too. I’ll check them out. 5 years before auction!? I was wondering why it hadn’t already gone in. The other part of this puzzle is his mental health. If he has dementia or other deficits could that be an issue? If he were to sign a contract and family later made issue of his mental health could the contract be deemed invalid or could I be in trouble? The neighbors say he has no income, they often bring him food. He looks like he hasn’t bathed in awhile. He admits to falling at home frequently. But he somehow manages to ride his bike around the neighborhood and buy fast food at several places. The neighbors do say he is still cognitive intact but he is clearly not healthy and not taking care of himself.

No mortgage since he’s original owner and paid it off years ago. Just the property tax lien. At his asking it might work but of course I need to see the inside. Maybe even get a contractor to take a look see. It doesn’t look like it’s in foresclosure yet but I’m sure they County is working on it. Should I get an attorney lined up after a walk through inspection? I’m guessing that is next or preliminary title report?

Hello BPers.

Whilst walking the dog I started talking to a friendly old guy. He's the original owner of a 1972 SFR house in San Jose, never remodeled or finished on the interior. I haven't seen the inside but the outside is weathered, weeds growing, neighbors say inside is in bad shape. It's the typical scenario of an older person who lives alone and can't take care of the house or bills.

He is already naming a price he'd like, knowing what a similar house to his sold for. But on guessing, its looks like it might need more than whats asking to realistically bring it up to code and liveable. I'll have to see the inside if he'll let me. 

On public records, he owes $7k in back taxes, not having paid since 2015.

How do I go about this? Get an RE attorney and draw up a contract?  The owner's memory is poor so he'd need to have a family member or spokesperson for himself. Nearest family is about 5hr drive away.

Do I ask a title company for a preliminary report? I dont' want to invest time/money if it's not worth it. 

If I were to obtain a contract I could wholesale or fix and flip. 

Hello, Awesome BPers. I'm new to investing and am thinking about building an ADU in my backyard. I'm in San Jose 95119 and from my research, I can build a 440SF ADU. Its a pretty small unit so I'm not sure it would be worth the trouble and costs vs ROI in rental income.

The best estimate thus far was about $125k total for the unit.  

What monthly rent would be reasonable?

What are some good companies out there to build?

If I sell soon after, can I expect to make a ROI or would I have to hold for awhile?

Thanks in advance

I'm in San Jose and was thinking of adding an ADU to my residence. I highly recommend permits. With all the construction that will be happening in your yard, to capitalize in the investment in the future (without permits, it cant be claimed/credited as value added to your property), and lastly avoid any city problems you'll want peace on mind. Plus, you have assurance that it's done right with a tenant in there and up to code.

LG rental property?!  Wow, you're sitting on gold mine.  Either way you'll win.  $52k for 700sf rental is awesome. Of course that price will likely be more with permits.  But most assuredly you'll get that money back with rental income.

Cash Flow AND equity.  Win win.

Excellent feedback.  Yeah, the mileage would be low for business use.  But I'm also looking into other ventures in Socal and possibly nearby states.  So miles would go up.  I'd just have to be sure at least 50% is for business.  Good points!!

patl. Thanks for the reply. Yeah, I knew about not creating a loss, that we can only deduct up to the income amount, not negative.  So was your audit, if may ask, triggered by the vehicle deductions?  Any particular app or method you use to track your mileage?

I'm a new investor looking to make my first venture into investing.  I'm starting to rent rooms in my private home to start.  I was researching deductions to offset my rental income. Section 179 is intriguing for vehicles.  For 2018 what I understand is we can deduct the business use portion on a new or used vehicle payments and expenses OR standard mileage.  Being that I'm just starting and dont have much income yet, if I were to purchase a car, like an SUV over 6000lbs per section 179, I might have more losses than income.  I read somewhere that this situation may be a red flag for IRS.  I'm assuming as long as you have all the required documents, that it shouldn't be an issue.

How many of you out there claim your vehicle?  Have you had any issues?

Hi peeps Thanks for the replies. I’m after the cash flow benefits and then adding value for that right MF. I’ll have to check out those better areas mentioned

Great replies. Yeah I see the market only going up as well. For equity yes. Not much for cash flow unless you put a sizable down payment. I n my case I’m sitting on “old money” having bought in 2002 and now nearly paid off. Time for a cash out refi towards something else