All Forum Posts by: Jon Haney

Hi, quick question about selling a rental property for less than it's worth and tax implications.

I purchased a rental property on 9/1/2022 for $40k, paid $4k in closing costs, and over the course of 2023 paid around $4000 for upkeep and security on the property. 

I was planning to renovate and rent out, but squatters unfortunately became a nightmare and I decided to offload the property. I sold it on 9/22/2023 for $29k. 

Here's my question: Do I qualify for a tax deduction considering the substantial loss on the property? I've read online that this applies only for rental properties that are in possession for at least one year—I'm guessing I qualify?

Thanks for any and all help,

Jon

Hi everyone,

Currently I own two investment properties, and I'm considering taking a HELOC on my first property to cover a down payment for a third. This is my first time with any sort of creative financing, so I wanted to run some numbers by you all to see if this would make sense or not.

Property value of first property: $95,000

Amount owed on mortgage: $44,000

FYI: I’m cash flowing at around $500 between our first two properties, I’m able to set aside $1,000 a month in personal savings from my W-2, and I have around $13,000 in savings with no debt.

Does taking a HELOC work under these circumstances?

I’m sure that I’m missing some important information, so feel free to ask a follow-up question for more details! Thanks for the help everyone.

Jon

Hi everyone, 

I'm reaching out for help with squatters. I purchased a property back in August 2022 in St Louis that I planned to do some light renovations to (putting in around $10k) and then rent out. Unfortunately, before I could get a chance to do the renovations, squatters started occupying the property. I live out of town and I stay very busy with work, making travel to St Louis tricky on my end. 

For the past several months I've hired a property service company to board up the place, call the police for me when they spot someone in the home, and even clean the place out. Unfortunately, none of these things have worked, and at least one of the squatters is still occupying the place. 

The police have been agreed to make an arrest, but unfortunately it's difficult to catch the squatters since I live so far away and since the property service can only call the police during the day (which is often when the squatters are out).  

Any advice would be incredibly appreciated . . . thank you!!

Jon

What’s your take on this? Just the realtor trying to make his normal profit on this one? (FYI, Im not planning to send any money.)
 

Hi Mike, thanks for the help. I went back and reread the contract, and now I’m second-guessing myself here. Have I agreed to pay more than I initially realized, or do I just need to cover this $1,000? Thanks!

Hi everyone,

Currently wrapping up my second SFR, this one located in St. Louis. My question is about realtor fees.

I signed a buyer’s purchase agreement with a realtor that I got to know through this deal (he was already working with the seller). The agreement stated that I should pay 2.7% or $1,000, whichever is greater, with the property coming in at $40,000.

However, I was just speaking again with the realtor, asking about wiring instructions, and he told me he “usually charges a flat fee of $2,000 on transactions under $50,000.”

My question is: Is this fair? I didn’t know anything about his rate before we started, but neither did I specifically ask, since I thought his rate was stated in the buyer’s agreement! 

Thanks for the help!