All Forum Posts by: Eva Salas

LOC or refinance?

I very much doubt I can deed my home over to my LLC, pay my LLC rent, and depreciate. In the same way that I can't put my home in a self directed IRA. But I will ask my accountant when he's done with tax season.

I do, however, rent out rooms in my home, and am able to depreciate that sq footage, as well as deduct a portion of the cleaning lady, the gardener, cable, garbage, water, heat, etc. 

@Rob Barelli Hi from the peninsula! In CA we don't use attorneys for transactions so you can scratch  them off your list. Transfer taxes vary by county/area in terms of who pays what percentage of them, the buyer and/or the seller, so an agent in Santa Clara county could tell you what is usual there. 

Welcome Miles! So great you're starting young and have a flipping family! Best to you in your learning! 

My son and his partner went in to contract on a 960k 1500 sq ft 3/2 SFR on the Bay Area peninsula a week ago. I actually found it, helped get it in contract, and will lend on it when it closes in a few weeks.

Yes, everyone feels it's a great opportunity! The agent, who is fairly young and inexperienced, is a friend of mine who brought it to me and said "If only you had the money..." I told him you don't worry about that!! The guys are getting a hard money first, and a second from me. 125k in rehab and estimated ARV of 1.4-1.5 M

I'm not much interested in being an active flipper, but will be able to walk my dog past and look at the progress regularly. Excited for all!! 

Do not let them restore!! Hire an electrician for sure.  I would NOT wait. Because you now know about a potential fire hazard you simply must have remedied.  Charge the tenants for it.   I won't even let my tenant's paint and your situation is MUCH more potentially dangerous than a paint job!!  

How horribly sad. I'm NOT an expert, but my nephew is quadriplegic and he lived at my building for 3 years. I put in a ramp for his wheelchair, but other than that nothing more was required of me by law. The only other thing I can think of is security. Make sure windows and doors lock properly. That's true for any resident, of course. 

I would not discriminate. Unfortunately, she has the ultimate disability. 

@Daniel Rubenstein...I can understand your being uncomfortable about borrowing the money from a friend but how about the bank or other lender? I would feel fine as the only one bringing in money on a flip that my non-money partner found, and giving that person 50%, but no way would I give up 50% of the cash flow to someone who manages a rental I'm on the hook for. I would say take a management fee monthly, if you can do that without a license where you are, and make your money on the back end with a percentage you agree upon. Be sure a lawyer draws up the agreement.  

Ugh! I'm sorry to say your April fools day may find you the fool this year.  Everything @Marcia Maynard said, and others, are wise, wise words. Even if the tenant weren't being evicted there is always at least minimal turn work to be done. A new tenant deserves a unit that has been thoroughly made ready. One day to do that is not enough, and is stress inducing for you even under the best of circumstances. 

Hi, The homeowner, thru no fault of yours, is effectively being "demoted" to tenant.  There could very well be resentment and an eviction in the future.  Factor those in and I don't see any other reason why not. Unless the homeowner is a friend, in which case I would stay away.