All Forum Posts by: Mark Fedorov

Assuming that you do not jointly file:

I am pretty sure that the interest on the line of credit would be deductible (Sched A) if it is backed by her home.

If she took that cash and loaned it to you (and you had a document stating the terms), and you used that money for your business (or real estate), that loan interest that you pay her would be deductible to you (Sched C or E) , however it would be recorded as INCOME for her (Sched B), so if you are in the same tax bracket it would wash out.

IF it is worth 106 now, how much money in improvements do you need to put in it for it to be worth 120?

The other question here is Does you mother need that $56K in equity to have a retirement?

Instead of you doing the research, I suggest you call a few local RE agents and have them do the comps to figure out the sell price, and then ask them what improvement you could do to increase the price.

Considering that a new kitchen can cost $10K, the numbers do not triangulate. 

For doing what?

Sending you an MLS link... nothing

Finding you an off market house.. the should tie you into a contract for 4-5% before giving it to you

Finding you an off market commercial property;

          a) giving you contact info and you pursuing it:  A nice gift

          b) organizing a tour, and being the middle man and helping you though the process...1-3%

         c) all of B and getting you investment partners and a bank loan...6%

If you did not purchase the place, nothing should have been filed with the county.

You should talk to the agent/lawyer or whom ever told you that it was filed, I can not think of how or why an agreement of sale would be given to the county before the sale was competed.

If you get it under control the sell price will increase, so don't sell it at a discount now, improve it.

The rents seem weird, from studio to 1BR there is only a $25 difference? and from 1BR to 2BR is only a 30% jump... you should do more (or have the management company do more) market research to see if your rents are correct.

A good management company should help you get this on track, however put aside time every week or every other week to make sure that you improvement project is on schedule.

Yeah.. until the AOS is signed and the earnest deposit is received, there is nothing legally binding them to a verbal conversation or agreement.

If they are willing to dump you for the new guy, you may be lucky that you got out of that deal.

Lick your wounds, go on to the next one.

find out if zoning will permit what you want to do.

Get a architect who has done this work in the city you want to do the work.

It may lessen the blow if you offer to rent them their place after they sell to you,

At 7%?.. refinance, you should have done that 6 months ago when the rates were mid3's, but you should be able to get a rate in the low 4's... trimming 2,5% off the interest would save you ~1800 in interest in the first year

I am not sure why you think this is do one or the other, you can refinance, you might be able to pull some cash out of the mortgage and use that as a DP for your next house.

I would think that if you knew how much you would have to spend to get your variance, it would not matter what other people do.

I suggest that you think up a plan B for the property, that conforms to local zoning, and does not need a variance. If you can make money executing that plan B, great buy the place. Then doing plan A, and getting the variance would just be icing on the cake.

I am not sure how you can say that you had two deals fall apart and you have never been to a zoning board meeting. I would think that as you are negotiating with the owners, you would be talking to the zoning officer to get his opinion and going to meetings to find out how often they give variances.