All Forum Posts by: Matt W.

@Will Fraser

I spent a winter in Telluride, CO. An awesome place but the town is basically a dead end. I hear the STR business there is on fire!

@Michael Plaks

Thanks for the reply,

Yes I agree it’s counter productive to DIY too much, I’m just presenting extreme opposite examples to help my understanding.

@Jake Hottenrott

Thanks for the reply,

So In my “Super DIY Guy” scenario, I would only be able to deduct the $50k basis over 27.5 years but I would keep the extra refi money tax free (since it counts as debt), correct?

So I am in the beginning phase of my first BRRRR. Purchased for $60k aiming for $180 ARV and trying to keep my rehab to under 60k.

My question is how is the building value determined once all is said and done?

As I understand it, if the original building value was $30k and I spend $60k on the rehab, the new building value =$90k.

This leads me to a couple questions:

1. If the new total value is $180k and the land value is still $30k, why is the depreciable building value not $150k?

2. Let’s say for the sake of argument I were Super DIY Guy and could complete the same rehab for the just the cost of materials, say $20k. So now the only invoices I have are materials receipts, so 20k+ 30k original building value=$50k depreciable building value?? If so, have I screwed myself out of tax savings? However I should get to pocket the extra $40k I saved by doing it myself?

I know the first priority should be profitability and then worry about taxes, but I want to be smart. Thanks!

@Christian Walker

Just do some deals with the millionaire investors and then you and your dad will be set for life!

@Karl Dela Cruz

I just started a BRRRR and am in the exact same boat, found hardwood under tile in the main living area and hallway. There will be 100s of nail holes where they attached the hardie board so I'm not sure how it will look refinished.

Hi everybody, 

This "issue" was further complicated by the tenants not speaking English and requiring their 11 year old daughter to translate things like late fees, disconnection, etc.

The tenant ended up paying the bill and the former owner officially had their account closed, so all's well that ends well.

Thanks to everyone for their advice!

@Kyle J.

Yes, I agreed that the responsibility lies with the tenants. My lease states that they are responsible for utilities.

However, the previous owner entered into this landlord program with the power company, I did not.

Somehow he or someone at the power company screwed up cancellation. He basically was acting as a co-signer for the power bill.

This is slightly complicated so please bear with me.

Background: I bought an investment house in October 2019, put the electricity bill in my name for the month as I painted and did some minor touch ups.  In November tenants moved in, I took my name off the power bill and the tenants put it in their name.

Fast forward to today, October 30, 2020.  I get a call out of the blue from the former owner, who I have never met, who says he got a bill for the property for the last few weeks for $75.  He texts me the bill and I call the power company.  They tell me he had a "landlord account" and that he never canceled it, so any missed payments are his responsibility.  I cannot put it into my name as a landlord until the former owner cancels his account, plus they require you to own 10 homes, which I do not. 

The representative from Duke energy would not tell me the specifics about what the problem is with the current bill, so I can only assume the tenants have missed a payment.  The previous owner scheduled the power to be cut off.  I called the tenants and told them they need to contact the power company and make sure their bill is paid up.

The previous owner wants me to pay/assume this $75 bill, which I don't think I have any obligation to do, legally or ethically.  He was the person responsible to cancel his special "landlord account" with the power company, and I fully paid my bill for the month it was in my name.

Am I in the wrong?  Has anybody ever heard of this happening?  

@Nathan Smith

If you are at all mechanically inclined, I’d try to find a paid internship/apprenticeship program in the trades, such as electrician, plumbing, HVAC.

This would expose you to renovation work while making a good salary and without taking on debt.

Personally, I went straight to a pretty good public university and got a mostly useless liberal arts degree because that’s what everyone told me was the right thing to do.

After ski bumming for years, I got hired as a nuclear reactor trainee by GE. After years it was good money but all travel so not good for family life.

Anyways, school and new ways to make good money will always be around, but the pure freedom of being young and unattached will not. As others said, travel and have adventures now and look for real estate opportunities wherever you are.