All Forum Posts by: Joe Michaels

Hi,

Just watched the latest BP podcast about cost segs and it got me thinking....What happens after depreciation runs out on your property?  So as I understand it, repairs/maintenance is fully deductible the same year but major improvements have to be depreciated.  What happens if you have an "improvement" after year 27.5.  

Say you need a new roof, or a new boiler at year 28 of ownership......does this turn into repairs/maintenance?  What happens?!

Thanks Guys!

Joe

@Jaysen Medhurst, thank you for the reply!  

I agree. I think loan #1 is a better deal long term. 

Not very confident in the ARV however I am hoping to get the property for 20% under market as the seller appears to be highly motivated. . I guess Im banking on the initial purchase appraisal to be much higher then what we are paying.
 Not much to update for the interior but the exterior is a complete mess as far as curb appeal goes.  Stain/Fix the deck, landscaping, put a nice Faux stone front porch.  

Property is coming with 2 long term tenants (hopefully)    Water/Sewer I estimated from my other rental which are 2 bedroom so the water may be a bit high.   

Hello BP family,

Just joined and need help to analyze this deal. This will be our second investment property so we are basically newbies. Our goal for this property is to own for 20 or so years then sell to fund my daughters college. We would like refinance in year or two so we can get our capital out but have a couple questions for you guys. From the 6 or so quotes I got from small banks and credit unions it seems like higher the closing costs, lower the interest rate. I think this is because of an "investor fee" that the credit union passes on to the borrower from Freddie and Fannie. The small town bank does in house mortgages The interest rate is 1% higher but way lower closing costs and will do 75% LTV where the Credit Unions only do 70% LTV.

Credit Union -REFI

Cash flow - $161.57 30.45% Cash on Cash ROI

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Small Bank - REFI

Cash Flow - $67.92 . Cash on Cash ROI 303%

So is it better to have an almost free property vs one with better cash flow?  Thoughts?

Thanks 

Joe

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