All Forum Posts by: Philip Sriployrung

@Jason Hopkins hi there! I’m also looking for an electrician in Memphis. Would you be able to share that contact with me?

@Stephanie P.

But if he buys in cash, there is not title seasoning period.

Thank you everyone for your replies! I went forward with their recommended part replacements.

Hi there,

Recently had a tenant move out, did inspection and minimal rehab.

Two months later, new tenant is placed and when the technician goes to check the HVAC, it turns out it’s busted and needs replacing.

Here’s what the report said-

“Tech reset the breaker and the condenser came on. He added 3 lbs r407c freon to the unit. The pressure got to where it should be but the compressor is very loud and it appears someone had added stop leak. There is a leak in the evaporator coil and the compressor has been run low on freon and is not working properly. Tech suggests upgrading to r410a.”

I don’t know anything about HVAC’s but the above sounds like it could have been avoided if during move-out inspection they did a thorough check on the unit, and during rehab, fixed the underlying issues.

My property manager tells me inspection is just visual and I would’ve had to pay more for a thorough HVAC inspection.

Is the property manager at fault here or do I just suck it up and pay the full replacement costs of the HVAC?

Thanks

@Juan Avalos

I know Northpointe Bank does conventional loans under $50k because I have one with them.

@Bill Brandt

I’m short on funds, so I want to accelerate that depreciation to put my money to work now.

1031 exchange is part of the plan, so I’m not worried about recapture.

I thought these were tried and true wealth building strategies on BP? Pretty sure I first heard about these on the podcasts with @Amanda Han and others.

@Natalie Kolodij

The KBKG cost seg only cost $499. There's a plethora of posts in the forum about their service and other online cost seg reports. These online studies under report by 10-15% which keeps them safe from IRS. For an SFR purchased below $50k that 10-15% under-reported depreciation is far cheaper than what it would cost to do a "real" cost seg study.

And of course, an actual CPA is more knowledgeable and valuable than online software

But you tell me, if one's W-2 tax liability is less than $6k is it worth it paying a CPA $1-2k for filing?

Hi everyone,

I'm using a FreeTaxUSA to file my taxes. I currently own one rental SFR, purchased May of 2018. I did an online cost segregation study through KBKG.

I was able to break out my depreciation based on the 5/15/27.5 life of the property on the Schedule E form but it didn't give me the option to take the 100% bonus depreciation. The customer service reps at FreeTaxUSA are telling me bonus depreciation can only reported on Schedule C, taken after section 179 and does not apply to residential rental property.

None of what they're telling me sounds accurate. Yes, I know they're not real estate CPA's. This discussion is not on the merits of using online tax filing tools. Of course I'd love to work with a CPA who focuses on RE, but at this point it doesn't make sense financially. I'm only in the 12% tax bracket.

My questions- 

Can someone point me to what it says in the IRS tax code?

Does it matter if my rental property is listed under Business Income (schedule C) or Rental Income (schedule E)?

Thanks!

I'm currently looking into cost-segregation now too. Have either of you found more information on simple seg? Thanks

@Jake Stuttgen thanks for replying.

I didn't have to do any repairs on the property. But you're right, I should've calculated 70% of ARV and factored in closing costs.

I've just been hearing so much about BRRRR but no one ever mentions closing costs. In most examples it seems like people are buying heavily distressed homes and then adding value back with the rehab.