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All Forum Posts by: Jacob Sampson

Jacob Sampson has started 11 posts and replied 1528 times.

Post: First time investor...please help me analzye this singlefamily

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

I don't see any long term cash flow in this deal, though not the worst I have seen or purchased.  I would not let the hope of appreciation talk me into a marginal deal.

rent - 30% - PITI = some estimation of long term cash flow.

As a side not, as you stated, you live in a sellers market not a buyers market.

Post: How to get Tennants to actually leave

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

In Topeka the eviction process is $250.  I gladly spend that over losing another months rent.  You can definitely keep playing this game and they may leave but it's better to just roll with the eviction process.  A side benefit is when they get the official notice to appear in court that may move them along even quicker and you can cancel the eviction if they actually leave and not pay the full cost.

Finally, you could always pay them to leave.  $200-$400 to sign a document stating they are officially moved out/terminating there lease, and give you the keys.

I know that can be hard on the ego but this is about math, not ego.

Post: Transfer personal home to rental business for depreciation?

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

@Wayne Brooks I didn't even think about the capitol gains exemption of my personal residence.  That alone makes it not worth it.

@Linda Weygant LOL.  I agree with you.  You are definitely smarter about this topic than I am (being a CPA), I just didn't recognize it as tax fraud.  House is it fraud?

Post: Transfer personal home to rental business for depreciation?

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

@Mike Makkar

Certainly, that is good advice.  I was just wondering if others had done it.  We are at a point where we are finally seeing some consistant profit and are try to figure out ways to shelter it, without taking it to an extreme that would put us on the IRS's radar.

Post: Transfer personal home to rental business for depreciation?

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

@Mike Makkar

I own several other rentals and so my personal residence could just be a very poor performing part of that business or I could just pay my mortgage payment to the rental business as rent.

Post: Should we buy 2 homes or 1??

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

Just a little advice that you didn't ask for.  Those purchase prices vs rent don't leave a ton of room for any long term cash flow.  That would concern me.  You know the area better than I do and it sounds like you have at least one other rental, so take it with a grain of salt.

Post: Should we buy 2 homes or 1??

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

Option 1 has $625 in manditory outgo and say $950 in income.

Option 2 increases manditory outgo to $860 (or 35ish%) and an increase in income to $1500 (or 50ish%)

Based on what we know option 2 increases income by a greater % than it does outgo.  Seems like a decent choice.

Does your payment include insurance and taxes?

Post: Is this unethical?

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

I don't think that would be considered unethical.  The way to be certain is just to make sure all parties involved have all the info.  There's no rule that says you can't be totaly honest with your lender.  Just tell them what you want to do.  It's never unethical if everyone involved has all the data.

Post: Should we buy 2 homes or 1??

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

Can we get some details on all three properties?  These sorts of decisions are usually case specific.

Post: How much of a discount

Jacob SampsonPosted
  • Investor
  • Topeka, KS
  • Posts 1,557
  • Votes 1,143

@Logan Sherwood

For buy and hold I think you want to figure out what you would pay for the property in rent ready condition based on the rent.  So, for example, I am willing to pay up to 60x's monthly rent for a property.

If the property will rent for $1000/month I know I want to max out at $60,000 for the property.  If it needs $20k in rehab then the max I will pay is $40k.