All Forum Posts by: John Teachout

Utilities that aren't separated are always an issue. Why did you do that?

One solution would be for you to cover the utilities and bake it into the rent. This leads to lack of conservative usage but otherwise tenants are going to feel like they're not paying the right amount.

The price is too high for what you're renting is why it's still vacant. Anything will rent at some price. You need to base the asking rent on what the market will pay, you can't factor in your expenses or investment as that really has no bearing on the market rent price.

Quote from @Richard F.:

Quote from @Harita Konjeti:

Lease says that "tenant should find someone or rent will be accelarated and pay for rest of the lease period". 

 Aloha,

I would be surprised if this were legal, but of course local law applies. Generally you are NOT able to "double dip", or collect rent from outgoing and incoming tenant for the same days. The outgoing tenant responsibility ends the day before new rent starts. Also, you do need to make a "good faith" effort to re-rent.

This is state dependent as far as re-renting the property. In FL and GA (the two states I've had rentals in, there is no requirement for the landlord to attempt to re-lease the property. All real estate law is state and locale dependent and what applies to where someone is may or may not mean anything to someone in a different place.

Referring to your situation, I don't know how your contract is worded but the buyer could probably cut you out of the deal. It would be in their best interest to pay your fee if they ever want to do business with you in the future. Normally, on a wholesale deal, the end buyer does not directly deal with the property owner. Are you going to do a double close?

There's lots of wholesaling information out there. It's important to have a good idea of how this works before you start in. It's not really a "learn as you go" type of activity. Better start reading...

As stated, until you place the property in service (ie, have it available to rent) no expenses or depreciation are claimed. Keep track of everything and most of the rehab will become part of the basis that you depreciate from.

I've only seen tenants being responsible for "clogged pipes" if it was due to their actions. If there's a problem with the pipes themselves, the tenant wouldn't be responsible for that unless if it was a NNN type lease or something similar.

Copper plumbing? Who uses that anymore? That sucks though as it's not only expensive to purchase but to get installed as well.

You can certainly call the police and explain your situation, ie, "I'm out of town for an emergency and there's been observer reports of vehicles parking on the property. There should be no cars in the driveway. Please take action if you see someone parked there. Thank you."

I didn't think the book was amazing but it's definitely worth a read. I've read lots of different books on real estate and investing and there's no one book that caused a kaboom! but each book I've read has had some useful information and if one picks up a kernel here and there, pretty soon the basket gets filled. One of my favorites is The Millionaire Next Door.

Quote from @Mario Morales:

Quote from @John Teachout:

Depending on the CPA's question regarding treatment of depreciation, one thing that you may be able to do is depreciate some expenses that you claimed as deductions. This is sorta the opposite of what most try to do but it may be a way to show more profit in 2022 and eventually get the depreciation over the next couple decades...

Is refinancing something that you MUST do or is it a preferred path. The DTI issue may not be fixable. What happens then?

I need to payoff the HELOC and some CC's that were required to use as things came up in my last rehab and I ran out of cash.

 If you're eligible, sometimes you can get a credit card that is interest free for a period of time that allows you to transfer balances into it. That would kick that can down the road a bit. I get these offers all the time but don't carry a balance on cards so just toss them.