All Forum Posts by: Cameron Skinner

I have a couple of newer mobiles, Cons: I will warn they tend to be more maintenance than my site built homes, harder to get and keep good tenants, electric bills higher as it's harder to heat and cool them, they go down in value. Hard to sell unless you offer financing because banks usually won't touch them Pros: they usually have higher cash flow,

I tell people I haven't had a good week till someone threatens me with a law suit. And honestly out of dozens of threats I've only been sued once when one tenants dog bit another. Most are just baseless claims like my kid has asthma because of mildew in the bathroom that I haven't cleaned since I moved in. Mold is just the new hot button issue use to be asbestos and lead paint before that. Toxic mold is actually very rare and every home has a certain amount of mildew and mold. My advice is not to waste your money on testing clean with bleach water and buy a mildew mold suppressant from hardware store it's a chemical you put in a pump up sprayer keeps mold from coming back if on a painted surface get a fungicide paint additive and repaint area. Lastly when a tenant threatens law suit non-renew lease or get rid as soon as possible they will be a constant problem going forward.

You will never owe tax when you take cash out on a re- fi. Taking out a loan is not income to you because you owe the money back. This is one reason why real estate is such a great tax advantage. I have known multimillion dollar investors who have paid little to no tax using depreciation to wipe out rental income, 1031 to defer capital gain, and cash out re-fi to get cash out of the appreciation of your property without paying 20% to your other silent business partner "the us treasury" Oh and loans don't effect basis either

You will never owe tax when you take cash out on a re- fi. Taking out a loan is not income to you because you owe the money back. This is one reason why real estate is such a great tax advantage. I have known multimillion dollar investors who have paid little to no tax using depreciation to wipe out rental income, 1031 to defer capital gain, and cash out re-fi to get cash out of the appreciation of your property without paying 20% to your other silent business partner "the us treasury"

If I were you, I would set up something like dad puts in 50% of money brother puts in other 50% we split profits 33.3 each since I'm doing all the work. You can do this with a simple partnership agreement hold title in all three names or form an LLC. Go to Office Depot they have software programs that have standard partnership agreements or visit sites like legal. If you form an LLC you will need an organizational agreement. Never ever do on a handshake, all needs to be in writing. Most accounts can help you with this and will set up with best tax structure for your situation and cheaper than attorney. Warning many relationships have been destroyed or seriously strained by business partnerships so I would exhaust other alternative, bank or seller financing ect. first Good luck

In Florida if you have a loan on the property you will have to pay doc stamps on the transfer. It's not hurting any thing to leave it in LLC. IRS allows you to treat LLCs as disregarded entities which means you can treat as if it were in your personal name. If I were you I would just leave in LLC name, even if you stop paying the annual fee for LLC you can still sell the property later any time in future. You just have to sign an affidavit stating your still authorized to sign for the dissolved LLC. Good luck

It's always a good idea to hire a CPA that owns rental real estate. The tax code is so huge you need someone who specializes in real estate and is willing to coordinate with before you buy or sale any property. Structuring deals properly can save you 10s of thousands in taxes.

As others answered never a requirement to order an appraisal when using your own funds. Also you mentioned an annual appraisal for your SDIRA. I think your confusing having to provide fair market values to your custodian to file tax reporting requirements. Don't waste your money on an appraisal every year. You should be able to asses the fair and provide to custodian. If your not sure use sites like Zillow or your local property tax assessor data. It's been my experience they are more accurate than appraiser anyway.

No deal is ever perfect so if it's a good deal you should try make it work especially since good deals are drying up.  You can always ask for a discount for sketchy leases, I've also heard of having the seller put rent for a few months in escrow that's guaranteeing the rent for a few months give you time to evict no-pays or fill vacancies due to phantom tenants.  Trust me it's not uncommon at all to buy a place that has been extremely mismanaged.  Owner not really sure who's there and who's paying what.   Good luck! hope it works out.

First get it under contact at a price that works. Don't wast your time on due diligence until you have a hard contract. Your city or county will probably have a planning and zoning dept. usually you just go by and check. Chances are good it's fine as long as it was originally built as a multi unit and not converted without a permit. Most utility departments will do a temp 5 or 7 day turn on for inspection of a vacant for a nominal fee. Worth paying a couple of hundred on an inspection, if it comes back bad you can negotiate a lower price to account for repairs that we're not obvious.