All Forum Posts by: Hemender Devangan

Hello,

I need more help to understand on my investment calculation. As I mentioned that I have invested around 150k that is (sum of (all expense, principal amount, interest and property tax payment, HOA, Landlord Insurance) - rental income).

Out of this $150k , I have paid out around $127k for interest and property tax. I have claimed these in my tax filing. So I want to know how much these $127k has saved me.

Can I assume it is atleast or minimum 25% of $127k ?

If this statement is true then my investment is going to reduce to $125k and this number will make me break even.

I really need help to understand this logic, Please let me know if you need any more info to help me.

Thanks

Sharon,thank you very much.

I just sent you an private email regarding contact details for CPA.

Thanks

Brandon,

Thanks for your feedback. Yes, I am trying to find out local real estate CPA who can help me to file form 3115 : Application for Change in Accounting Method.

Thanks

@Steve,

I would love to get your help to buy two smaller rental properties in katy or houston area.

Right now I am trying to put my Austin rental property for sell.

I have issue to recognize missing rental property depreciation for last 5-6 years.

Can you recommend some CPA  who can help me to get correct this depreciation issue ?

Thanks

Thanks for suggestions.

Update :

1. Fired my tax consultant

2. Spoke to HR block and it seems HR Block person understands my situation and wants see my tax filing papers to make sure that make sense to file rental property depreciation for last 3 tax years which is 2014, 2013 and 2012. I hope that should work, at least some thing better than nothing.

Still i will prefer to get more advice from you guys to make good decision to sell house.

Thanks

Jay,

Thanks for your response. In my case,  rental income-expense is loss for me.

It seems I have to take decision to take less loss vs long term long loss.

I hope few more friends can share their experience so it can help me.

Thanks

All, Here is latest on my situation.

I have check couple of realtors to get idea of selling price. It seems house selling price will be around $370k (which seems low to me as house in located in Avery Ranch Area in Austin with lots of upgrades, big corner lots) , plus I have to pay for replacing carpet, putting new grass at front and backyard and others fixing items in house which can cost me another $5k to $15k. Already I have investment for $150k so if I add these additional expenses then my total investment will be $155k to $165k.

Now If I sell house for $360k to $370k then I have to pay $200k to bank for mortgage payment, 5% to 6% ( min. 18k) seller and buyer commission, $9500 for year 2015 property tax  , title fee and other closing costs so altogether there will estimate charges between 230k to 240k. So out of $370k (selling price) - $240k (Bank loan and other estimate charges) = $130k 

So I will get around 130k return on my $155k to $165k investment. It seems it is clearing huge loss $25k to $35k for me.

But I keep renting house for another 2 years then there is more chance that property value will appreciate and that will reduce my loss margin in a long run.

Let me know your views. I need help to understand all financial impact before making any decision. Definite i do not want make loss, I will ok as long as I can get back my investment and put money into other smaller investments.

Thanks

I agree that Zillow is not accurate. I believe my property is for worth $400k. It is located in Avery Ranch area. Builder was DR horton.

Steven,

Thanks  for your reply. I have to sell my Austin house and then can invest in Katy. I definite need help to find out smaller rental property preferable new house to lease out and create a positive cash flow.

Do you have any property in Katy or around ?

Thanks

Hemender

Cal, looking forward for that link.

Bob, Yes, I filed all rental income on tax without showing any depreciation.

Thanks