All Forum Posts by: Paul Winka

 Thanks Scott, but what does that mean in lay terms? Tools can be added to starting basis for this property when it is placed in service? 

Like the others have said, check with a CPA. 

I am not sure which way to go with tools as well. Screwdrivers, drill bits, tape measures that would total no more than $100 each year? Well, I'd posit that those would be OK going on line 15 of the Schedule E's "supplies"  and spread across all the properties.  I'll find out when I ask my CPA in few days. 

If you have a flipping business and a schedule C income, then that might change things because tools would be needed day to day as part of the business. 

 Ah yes, good point. I will provide them as-is and they are welcome to use them, but will not fix them if they break. What I need help with is not the appliances and the agreement with tenants, but were to get a good value on appliances that are used. 

 Well yes, obviously I'll be telling the wholesaler my intention since I would expect to be paid when the transaction is done. Even though it doesn't matter in the end since the wholesaler gets their full asking price and the buyer makes the offer based on what he thinks the house is worth, the buyer might not like that I am getting a $4K fee for making this deal---some people do get upset about stuff like that and may try to cut me out of the deal. How is this handled the smoothest way...what is the generally accepted best practice? That's what I need help with. 

A rehab is nearly done and the occupancy permit will be granted shortly afterward. I still have to take care of the hardwood floors and paint after moving in. The painting shouldn't be too bad, but about those floors, I need to sand, stain, and put down polyurethane. I am contemplating doing that myself. They are somewhat water damaged but salvageable, see pic. I plan on staining a darker color. 

For those first-time DIYers that did their own floors, was it as tough as you expected or did you mess your floors up? What's the trickiest part of getting right and any other tips? What grit of paper did you use on each stage of the drum sanding? Thanks!

Where do you find the best deals for washers & dryers? It's not important that they match, be like new, be free from scratches, or have the latest features. I just want something that has some useful life left and don't mind at all that they have been used. I have hear about ReStore, scratch-n-dent models from big boxes, and then of course craigslist. What do you recommend?  These will go in a lower income rental that I will live in for a short time. 

Need some help...

A wholesaler is selling a property for which the price is set at $19K--that wholesaler has the property under contract with the seller. I do not want to buy the property myself, but I know somebody that does. This prospective buyer is willing to pay more, $23K, leaving $4K for me. 

What is my role in this situation? Am I "wholesaling the wholesaler" or a "middleman", an "upmarketer" or what is this practice called? Is what I want to considered legal? Since I am a deal enabler, how can I legally get paid without p***ing anyone off and do it all above board? What should I do? I really would like to earn my first $$ enabling a deal but I am not sure what to do. Thanks. 

If you're new, get the year-round rental near where you're living. You get experience with landlording much quicker and you'll probably have less turnover than with a beach cottage. 

Thanks Jim, but it looks like I will just have to have a large depreciation basis for next year.

There's still a dumpster in the driveway and I don't have an occupancy permit yet, so putting a CL ad or a for rent sign in the yard would probably not meet the spirit or intent of "in service", would it?

@Dan Host

I can relate to your situation, Dan. It's cliche to mention this, but buy something and get started. I just bought a house that needs light to medium rehab. And guess what? I paid way too much for the house, the rehab is more expensive and lengthy than I thought it would be and in the end I will be pretty darn close to where I would have been if I just bought a house at retail, maybe even better off at retail. 

But I now know how to put a rudimentary SOW together, where to buy cabinets, what backerboard and luan are, why I need to issue W9s, that I need an inspection to turn on the electric if the service has been out six months or longer, getting going in QuickBooks. The list goes on and on. I jumped from safety, into the frying pain and straight into the fire! It's OK that there are all these problems because I KNOW the next one will be done more efficiently no matter what. Win or learn!