All Forum Posts by: Marco G.

Not really sure what your question is here. Anything can cash flow if you buy right.

You have a problem tenant. I inherited someone like this once. They ended up just leaving with no notice and leaving a bunch of stuff behind that I had to pay to have hauled away. And this was after I’d paid to replace an entire HVAC because they failed to change the filters, yet they wanted an “inconvenience credit”. There was some complaint about every service guy I sent out there for whatever problem there was, and nothing was ever to her satisfaction. Don’t let the tenant dictate how you run your property. No credit. It will never end if you give such a credit.

Make your offer on what works. You can tell that many people over the years bought thinking these people would leave but at least one of them never did. You can’t buy assuming he will.

Any referrals for a reasonably priced electrician or handyman in the Mesquite TX area? I believe the breaker box needs an upgrade. This is a C-class property and my guy is out of town. Thanks.

Whoever wrote that made a huge mistake. The residential and commercial property depreciation schedules did NOT change to 25yrs. They remain at 27.5 and 39yrs, respectively, in the final bill that became law.

So if I placed a new AC system in service on a duplex in October I’d usually depreciate that on a 27.5yr schedule (cost more than $2500). That hasn’t changed from my understanding, am I correct?

Since your financing is the same whether you’re an entity or an individual when you’re at 5+ unit properties I don’t think there’s any upside to holding in your personal name. That being said, years ago I lived in a 15-unit and the checks were made out to our landlord’s family trust.

How many years of return will a tenant turnover cost if that’s how you’re running it? Faulty analysis but I have some properties to sell that person if that’s the valuation they’re willing to buy at.

Assuming all that is changing is the years (5 of 8 vs current 2 of 5) section 121 capital gain exemption would be prorated if you didn’t meet all 5yrs. Seems you’re under impression it’s all or nothing. Just to consider.

Don’t forget that interest paid as part of payment is deductible in the year paid, whereas prepaid interest (the $3800) option must be amortized over the life of the loan. Meaning you’d pay $54/month is $648/year deductible interest vs. less than $130/year deductible. Need to factor that in your calculation. I also like calculating breakeven point as you have done. Generally speaking, I’d rather have the $3800 on hand.