All Forum Posts by: John Reuther

@Ben Stout I assume you're talking solely about the state of Florida.  Just remember, every state regulates the collection of sales/use tax differently.  In Vermont, once you hit 30 days in a rental, there's no more rooms tax. 

@Victor S. Well it was a foreclosure, so there were delays on behalf of the bank.  My side was ready to close in early December. Sorry, I should have clarified

When a property averages less than a 7 day rental period over the course of the tax year and qualifies as a non-rental activity, and non passive tax treatment, how is the rule about personal use affected? Can the owner still use the property for 10% of the rental days or 14 days, whichever is greater, in the tax year? Or do they forfeit all personal use? Seems to be very vague. 

@Steven Hamilton II do you have some insight into this? 

Terminate treatment as a result of inspection? The seller would always have to remediate. I guess I'm not familiar with a lender required repair. Time length is definitely not double. I just closed on a foreclosure with a FHA/reno post TRID in less than 4 months. All delays were due to the bank that owned the property.

Thanks for the info

Obviously cash offers will win.  But the competition between remaining products must depend on the market.  I guess its a completely different market in MD. They do work very well, as I have experienced personally. 

Are the other offers cash offers? Or are they financing using traditional products and financing the renovation out of pocket?

@Russell Brazil Have you personally experienced sellers walk away from a deal because the buyer is using a 203(k) or homestyle loan?

It takes a few weeks longer than normal, if you really stay on top of it and get the paperwork done as quickly as possible.  I just closed on one on January 29 after putting in my offer on Oct 8 2015. As Im sure you found, the reserve is based on reno estimate and is included in the loan. And yes, you can use the HS for a flip in certain cases.  I think you have to call it a vacation home because it has to be your primary or secondary home if it is a Single family residence.  if its a multifamily, you have to live in it. 

Yes. You must have a GC managing all subs.  All the contractors must sign off on their work and sign to a one year warranty of their work.  It is much more paperwork for them but the money for their work is in escrow, so the risk of nonpayment is extremely low.  

Value your property based on comparable recent sales NOT Zillow estimate.