All Forum Posts by: John Khadiyev

I thought that if you lived there 2 out of 5 last years then you do not pay capital gains up to $250k but if it becomes a rental or you lived only 1 of 5 years then you can do a 1031 because now it's not a primary residence and if you sell it you gotta pay cap gains thats why 1031 is ideal way to go. Am i missing something?

John

If the tenant maintains the pool they almost always try to limit the timer for the pump or have differed maintenance not emptying baskets,not adding water, not checking chemicals properly. As a pool pro I think you should not trust tenants with pool maintenance. Especially if it is a newer pool. Improper chemical balance will ruin $5k-$8k plaster I have seen this. I agree with previous posts that pools are a money pit, we work on pools every day and I know all the costs.
I bought a rental and removed a pool because I don't want to deal with repairs an upkeep and liability and I own a pool service company. I've done the math, home with a pool on average cost $2000-$3000 per year more to maintain. Water, chemicals, repairs, electricity all adds up. A typical 2hp pump running 8 hours a day cost about $200 a month on (PG&E Tier 3), In my area during the summer pools need water once a week, $40-$50 per month. Chemicals are not cheap either. Typical weekly service with chemicals cost aprox $60-$80 for basic service and up to $140 for full service per month in our area.
I think maintaining pools can cost a bunch of money to landlord (repairs) and tenants (upkeep). But without a doubt in our area pools are desired due to hot summers.
John

Make sure you check out the tenants and look over the lease contract. Look at the rental comps see if you're getting the market lease. Or is it under priced? overpriced? What happens if tenant trashed the house, do you have $ to cover all the repairs and get it rented fast? What if the home values drop, market rents drop, tenant moves out trashes the house. Now you have to spend $3k-$4k to ready for lease and the market rent is $1150 and it takes you 2 months to rent it, can you do all that and still be financially secure? I try to think of worst case scenario and calculate if I can afford it. I think if the house is in decent shape and tenants check out, I would go for it.
John

I wanted to know what are the limits on deductions for depreciation or cash flow passive income on rental homes owned by a licensed RE agent. I have read that it's better to have a license when you have rentals (SFR's) because you can deduct more, but how much more compared to a non-licensed landlord and what are the limits.
Thank you

John

VA charges a fee of like 2%-3% for loan guarantee. FHA is an option if the property will still cash flow after all the expenses. Sometimes a better way to go is 20% to avoid Mortgage insurance, but I guess you gotta have the cash.

Thank you for some good info. I will consider all options.
John

Hello,
I am thinking about renting a 3/2 1500sq ft home to a family of 6. Four kids ages from 7-12 and two adults. That's two people per room. Is that considered wise to do? Is that full occupancy or more than recommended? Or am just looking for a problem.

Thank you
John

In my area in a B/C neighborhood a typical 2/3 house is about $90-$110/ sq ft. rental comps are $1395-$1550. I'm in escrow now for a 3/2 house at $128,000 with $30k down PITI is $710.00 and about $10k in repairs I plan on renting it for at least $1350-$1450 per month. So my projected cash flow (fingers crossed) $550-$600.

John

I think this is relevant to the first post so I don't mean to change the subject, but this is interesting software from NASA.The things they do with computers these days are nothing short of amazing.
http://www.techeye.net/software/nasa-to-auction-off-software-patents

So the day escrow closes I put a FOR RENT sign on front lawn. Would that count as placed in service? I know its splitting hairs and probably wont matter, so I'm just wondering.

Thank you
John