All Forum Posts by: Hemender Devangan

Jai and Jeff, thanks for your sharing your views.

Based on all views expressed by different friends here. I am more inclined to sell this property and invest into two smaller properties in Katy, Texas.

But still need to understand more mathematical calculation so I should not pay any more from my pocket after selling house.

Thanks

Thanks for sharing your experience.

Cal, So I have to pay almost $13,500 Tax on selling price ? Say if I am able to sell house on $375k so tax will be $13500 plus tax on $65k (357k - 310k ) ?

Jonna, If I can sell my rental property then definite I will invest in another smaller rental property so I can generate profit. so looking to help find out help in Katy, Tx area who can help me to find out property and manage it.

Thanks

Hemender

Whats implication for capital  and loss tax ?

Hello,

I am looking to invest on rental or investment property in katy area. I want help to find out house for less than $150k and property management company who can manage it for rental purpose. Please suggest me reliable names who can help me.

Thanks

MODERATOR:  RECOMMENDATIONS ONLY.  NO ADVERTISING YOUR OWN SERVICES HERE.

Hello,

Rob and Jai thanks for your response. So far, I have not depreciated my property in Schedule E as my tax consultant never did and I was not aware about it.

$5000- $6000 loss after payment for landlord insurance ($1400 per year), HOA (510 per year) includes all operating.

For example, last year rental income was $24,649.1 and 

Paid property tax $8,745.45, Expenses $4,680.55 which includes property management fee, maintenance and other misc. expenses, Paid $7,913.96 principal amount and paid interest $7,170.76 so lost around $5,700 as negative cash flow.

My loan terms is 20 years for 3.5% interest rate and remaining loan term is 18 years. 

As I have not depreciated my house ever, Can it be a  problem if i sell my house ?

What about realtor fee and profit and gain taxes if I sell my house.Then probably I am going to loose more money than $6000 per year for few years then take advantage of appreciation of property price plus more equity in house.

Thanks

Hello,

I am in dilemma about my investment house whether I should keep it or sell it.

I bought a house in Austin area in 2007 for $310k which includes down payment, closing cost. Lived in that house till end of 2008 then moved to new location because of job. So had put this house on lease since then.

So far, I have paid $150k which includes principal payment, mortgages, expenses, refiance cost, few changes in house. and now balance mortgage is $199k and as per Zillow market price is $364k. I have refinance my investment mortgage at rate 3.50 in 2012. so my monthly mortgage is around $1200 plus around $9000 property tax expense. I am getting around 2100 rent on this house and paying 6% of rent to property management company.

So far, I am not making any money but paying around $5000 - $6000 per year from my pocket to keep this house. 

In  one sense, It is good that I have a fixed asset and hopefully in future it will give me profit.

But I want to know other people view on this - Whether I should keep this house or sell it and put cash into money market account so money can grow must faster.

As this house is more than 7 years old, next year I have to replace carpet and probably few more investment to replace old house hold items.

Please share your view so I can make a decision on this.

Thanks