All Forum Posts by: Michael Pannacciulli

Hi @Michael Pannacciulli if ou don't mind, where in PA is the property? Depending where, I might be able to help. I am not an agent, but I am partner with a broker that focuses on investing. 

Quote from @Michael Pannacciulli:

Quote from @Theresa Harris:

Run the numbers and see what you'd get for that house vs whatever you wanted to invest the money in in TN.  Also look at why the house isn't selling.  It is over priced, it is a slow time of year, etc.  Your realtor should be able to give you some advice.

Tisha - I'm digging into that now.  Realtor thinks it's more the time of year.  I think it's the price ($250K), but likely a combo.  

 I know someone who just sold a house. She had it on the market in spring (a bit too early) and at too high of a price.  Finally got an offer, but the buyer bailed at the last minute.  She relisted it and after nothing for a month or so, dropped the price and suddenly got two offers.  She sold for $5K less than the original offer and close to the price before the final price drop.  Given the timing of the second offer(s), it was a lot later than normal for that market.  All of that is to say the market is odd these days.  If your price is literally $250K, drop it to $245K and see what happens. People often use numbers like $250K as a cut off an only houses less than that appear on their search.

Run the numbers and see what you'd get for that house vs whatever you wanted to invest the money in in TN.  Also look at why the house isn't selling.  It is over priced, it is a slow time of year, etc.  Your realtor should be able to give you some advice.

Quote from @Ricardo R.:

@Michael Pannacciulli there are a few factors that would help me assist you. Do you currently live in TN now? -- What type of 2nd home is it? (i.e. Bedrooms ? Baths? Lot size? etc. ) How much equity do you think you have in your 2nd home? What do typical 3/2 rentals in the area you considering in TN go for? --- What are your investment goals? 

@Michael Pannacciulli there are a few factors that would help me assist you. Do you currently live in TN now? -- What type of 2nd home is it? (i.e. Bedrooms ? Baths? Lot size? etc. ) How much equity do you think you have in your 2nd home? What do typical 3/2 rentals in the area you considering in TN go for? --- What are your investment goals?

Quote from @Michael Pannacciulli:

Hi - when do most folks hire a CPA?  Before the first purchase, after...after several investments?

Also if you are an out of state investor, do you pick a CPA in your home.state?  Does it matter much?  I don't expect or need to meet the CPA physically, that would be nice but not required for me.

Thanks!

 Do you have a deal ? Have you done a deal ? If not do a deal 1st, 

One small consideration you might consider depends on if you have a LLC.

From what I understand, if you operate a company, there is a higher chance that the IRS will audit you. So if you put your first property under the LLC's name, you will probably fill out a Schedule C (Profit/Loss). Maybe even a Form 8829 (Expenses for Business Use of Your Home) if you are an Active Investor in the eyes of the government.

If you get hire a CPA, they can fill out your taxes easily. So make sure to use a good accounting software to keep track of your finances! A CPA will file your taxes on your behalf, putting their weight and credibility behind your return - making an audit less likely. That way you can keep the IRS at bay for as cheap at $100!

It's not completely necessary if you're starting out, but I'm someone who prefers to be safe than sorry.

(P.S. Someone fact check me if I'm wrong. I'm always to updating my RE/Business knowledge XD )