All Forum Posts by: John Alosio

@Michael Plaks

Thank you Thankyou for taking the time to break that down for me. That all makes total sense. I appreciate your thorough response.

@Eamonn McElroy

Thank you for your reply. That's exactly why I'm here, for a second opinion. And to see if my CPA is actually knowledgeable about the ins and outs of investment property. He claimed to be an investor when we met a few years ago. Recently he admittedly sold his holdings because it was "too much hassle". So I'm questioning his reliability in the understanding of this realm of taxes.

It is possible that he was attempting to dumb-down the explanation for me to understand. Would you mind giving me a quick explanation of how it would work:

Half the duplex was in service since purchasing the property(2018). So that is pretty easy math. repair / improvements went into their allotted categories.

But the unit i lived in is the question... put into service in 2020 with back dated improvements...

New carpet (2018)

New water heater (2018)

New oil tank (2019)

Also, my second question with my current residence.... would it make a difference if i improve now, or wait til i move out?

Thankyou for your time.

-John

Hello Great people of BP!
I have a question regarding depreciated improvements on a rental property. I do have a CPA. But I just wanted to get a second opinion on my situation.

My first question: This past year I moved out of a duplex house hack and put my unit into service as a rental (2.5 years after purchasing). During the time which I lived there, I made some improvements that I thought would be no problem to begin depreciation after I moved out. However my CPA was concerned about how to treat these items, being that it could raise a red flag for an audit if they were being depreciated over 25 years instead of the typical 27.5. Does this sound right? Has anyone been in a similar situation?

On to my next question:

I Am currently living in my second duplex house hack. I am gearing up to do a similar deal with this house as well. Live here for a few years while I make necessary improvements, then move on to another property and put my unit into service as a rental....

I plan on adding some walls/closets to cure its functional obsolescence.This is not important for me personally since my family is small. The idea is that it would add value/comfort when renting to a larger family.

So... the question is... Should i hold off on making this improvement until after a move out? So that i may Start depreciation at 27.5 years from the day that i put it into service? Or am I over thinking this? Should I just complete the job and writeoff what I can, when the time comes?

I hope this made sense. Thanks for reading!

@Jamie Bergstrom

I'm sorry I can't really help there. It sounds like it may be area specific?  Some areas charge s and some don't? I'm just guessing here ... I've never been charged to post a rental on CL in my area.

@Alan McDonald

Congrats on taking the plunge!
I'm still rather new myself. I only recently discovered BP after purchasing my 2nd duplex house hack. I wish i had found it sooner! so many mistakes that could have been avoided if i had access to the wealth of knowledge available through this community.

Even though your first deal is pending, i feel like you are already in a strong position, Having BP on your side.

Best of luck with everything. Make sure to build up that tough skin for landlording.

@Account Closed

2 words... House hack. With an FHA loan you can get up to a 4-unit propertY with 3.5% down. As far as help funding, ask your realtor about seller concession. Basically the seller covers a portion of your closing costs, in exchange for increased sale price. So it's no burden for the seller, and it gives you a little boost of cash in your hand after closing.

one thing to note, I wouldn't recommend walking away from the closing table with $0 in your bank account. You'll want to have a decent chunk in reserves to cover unexpected issues. So save up more than what you'll need to close, ask for seller concession, then you should be in a good position.

cheers

Greetings all.

Tis the season for White stuff falling from the sky. I want to get some feedback on how you treat snow removal in a small multi-family.

I know, I know, some of you might say "tenants responsibility". However my duplex has a decent size driveway leading to the house where tenants have designated spots. I feel like I should at least give them a clear shot to the main road.

In the lease, I have tenants responsible for snow removal of their spots only. The main driveway is my responsibility.

If you are in a similar situation... How often do you clear the driveway? Whats your threshold for calling the plow to come out? Do you wait until after a storm to plow?

Thanks in advance!

@Luke H.

I do not list the address. I only give out the address once they've passed a few basic standards of communication. 
i get the occasional "still available?!?!?" or "I'm Interested" . also I don't give out my personal cell #. only email. If they can compose a simple professional email, they pass the first test.

Craigslist gives you the option to select a location radius. i center it to a nearby highway (about 2 minutes drive from the house) to give them a good idea of general area.

I do include an outside picture of the house. i have not had any issues. You're right to approach with caution. Craigslist has a fair number of weirdos. Just have to weed them out.

@Luke H.

I use craigslist (almost exclusively) to list my rentals. and have receive great results. Being in the same market as @Matt M. it's true, rentals go rather quickly. No shortage of inquiries.

Recently I ran my listing with zillow and craigslist at the same time. I got a few bites through zillow. but still got a boatload more response from craigslist.

Strangely i got a few ppl from craigslist that said they were happy that i was not a scammer. I suppose craigslist is currently flooded with bogus listings. Which is frustrating on my end because it throws off research for local rental comps.

Personally when I was living in rentals, I used craigslist all the time. I found that other (more official) sites like zillow & appartments.com, everyone expected me to cover the realtor fee (one month rent). Honestly if the landlord was too busy to list it him/herself, they should cough up the cash to cover realtor fee IMHO.

Bless craigslist for offering such an awesome *free* tool to the public. Fu*k all the a$$holes trying to ruin it with scams.

@Tim Kaminski

I am planning on partitioning off a large pass-through room to make into a legitimate bedroom. I called the town to ask if any permits/inspections were required. They gave me the few standards that must be met & gave the thumbs up but suggested i call this local sewage guy to verify that the septic system could accommodate the extra bedroom.
I called the guy, he seemed very hesitant but eventually gave me the green light. now I'm wondering if i should report it to the county to update the house's records. would this increase my prop taxes?
But anyway. call the town. couldn't hurt if you just say you were thinking about it.. see what they say?