All Forum Posts by: Josh July

I have a quick question on tax deductions. 

Today I was at my Business Finance Course and we were talking about TAXES; my professor who shall remain nameless mentioned that "only ~1% of all taxes filed are ever audited" before he said that he was discussing tax deductions and how you can "tax deduct lawyer and attorney fees on business related expenses"(contract, legal and financial advice, etc.)

 I ask my Profecer "Are tax audits, tax deductible(lawyer and attorney legal fees, etc) ?" He never answered my question and only gave me a grin look before continuing on in the lecture; therefore, BP members I want to ask you if they are "tax-deductible". 

*Now I know that any final desition should go through proper legal counsel and I do not have this issue but I am really curious to what you would think :D

Not my image, link to source

 Have you seen the unit yet? Does it have a lot of damages?

1. holes in drywall

security deposit will cover that

2. need painting?

generally, it's the owner's responsibility to repaint depending on your contract, because most good paint life is ~3 to 5yrs in rentals

 3. does the carpet need replacing? 

if so I would maybe replace with laminate or tile

4. are appliances old or constantly having issues?

if so I would replace with new appliances because that keeps the tenant happy because they spend every day there

5. Replace old faucets, showerheads, and light fixtures and fans with new modern parts/appliances 

 this you can not charge your old tenants out of their security deposit unless they break it, but even then if it is old it could not be their responsibility since its general "wear and tear"

 For me, the house doesn't have good curve appeal. 

TIP-

 the rockwork near the window does not look good from a distance. If I were you I would stain the rocks different stains

for the stairs, I would add brickwork to make it pop, same with the pillar near the garage 

I would concrete or a brick paver walkway leading up to the stairs 

I would also remove the flood light above the garage because for me personally, it makes me worry about how safe the neighborhood is 

(this is just my personal opinion, and I could be wrong)

@Daria B. I would let a cat in, just make sure that they have a litter box. I would just raise the security deposit by $500 and maybe charge something small like $20 a month(2X for every additional pet). Cats are generally much cleaner compared dogs; which (dogs) commonly cause noise complaints, often ruin doors and carpets, and frankly, they don't bury their own sh#t :D   

I found this very useful on the forums that @Christopher Phillips a Real Estate Agent from Garden City, New York

said "

1031 can't be used for personal property. Only investment property.

For personal property, there is a capital gains exemption $250,000 for single people $500,000 for married couples." (https://www.biggerpockets.com/forums/88/topics/485...)

Here is some helpful link from BP that might help you, but personally I would talk to a lawyer/Attorney to make any final decision(s) that way you do things right and you don't loose money....

https://www.biggerpockets.com/renewsblog/2015/09/2...

https://www.biggerpockets.com/renewsblog/1031-exch...

https://www.biggerpockets.com/renewsblog/2015/12/1...

 So glad that the fridge still works. I personly wouldn't replace the fridge yet and would wait before replacing it(maybe after current tenant moves out, or it actually breaks); but before you decide on buying a new fridge at least do a quick Google search on the model and brand because nowadays most of the "Modern" locking and "Fancy" fridges have very very poor design, such as: leaking ice trays, going through coolant faster than usual, freezing drains that constantly cause water pooling, etc.  (trust me my cousins have gone through 3 in the past 10 years, most major brands are crap nowadays because they are now built entirely overseas and have very poor to no existing quality contral)

Same. I think they are currently fixing it and some of the other bugs on the app.

I would just transfer it since it's not that much money and it would save time and money arguing about it. FASTER CLOSE=the faster you get your money to invest somewhere else

If I was you I would tear out the carpet and replace it with laminate or tile if you are going to keep it as a rental. 

I literally did a walk through a property in South Sacramento, according to the landlord he thought that they were great tenants who didn't cause any problems or have any maintenance issues for 3 years; the problem is when they moved out the house was totally trashed and had soooo much damages. Apparently, they used to house to grow cannabis, they left piles of dirt, tons of pots and grow equipment, and basically clogged all the tubs and sink drains. 

Tip- If your tenant is just paying you and not having any maintenance issues, they could most likely be doing what they are not supposed to be doing or hiding a problem(most likely because they are afraid of rent increases)... DO YOUR REGULAR WALK THROUGHS at least once a year