All Forum Posts by: Robert A Garcia

With the advent of the internet owning and operating vacation property has become a lot easier.  Its still about location I checked a lake near me because I had to sell my folks lake front home after they passed and I noticed all of the properties that were available online were not in the area that my folks were. Since there were none in my folks part of the lake ( its a big lake ) I don't really know if that was bad or good.. However I had no trouble selling the place for at or over what realtors had told me I could get. I had no trouble locating places for rent online is my point

As far as personal use I would advise if you want to use it, you pay for it, so when you fill out the form about how many days it was rent able ( sch E) you have no personal use and can enter 365 on that line.  A big red flag if you were to enter anything else, not to mention the headache of dividing up personal VS rental use. What do you think of those ideas Sara Peak?  Good Luck

Money is green everywhere so I would get the money that is the cheapest. If you have enough right now than get cheap for the long run...Lower interest rate... If you are strapped than get the lowest for right now, lowest closing costs, points (up front costs)  Also if you continue doing this try to move towards deals that don't involve a lender, owner financed, contract for deed, as then the money costs are almost nothing

Also if someone doesn't even want to pay the $35 application fee for the screening service what does that mean.  It means you didn't waste any more of your time.  On the other hand I have had some really bad applicants pay it anyway even thou they could never get approved.  You just have to follow the right steps

All of these things sound good but I would find a good screening service and rely on them... Mine takes the score into account but it could never be the only thing, as mentioned earlier

Hey Justin Avery   One of the good things about talking directly to the owner is you get immediate feedback.

You have never done this before, would the owner carry paper, This can cut down on costs and make the seller a lot of money from the interest you will give them. Careful though as you won't be protected from buying a place that is not worth it ( a bank generally won't let you do this) I saw an idea mentioned earlier that I did once. You take an option, clean up the place and see if it flies an minimal risk to you before it closes as you can have money coming in before it goes out

Most of all start out, this is a really good time for the market, unlike 10 years ago.  Keep learning and come back to this place as I have seen a lot of good advise here.

A good thing to do is to set up a LLC, and its function is to own and operate RE. Apply for S status (IRS) and in your operating agreement call out you and your other members. You will participate to the extent you allow and the shares you have. (50/50,whatever) Any gains or losses "pass through" to the individual on the back of your schedule E. This way its legit however nothing can keep you from having a good or bad experience and you will just have to find that out. Most good partners work together, provide things to the partnership that the other one can't.. After that its just character. Its sounds like you have a good start Peter Decker, GOOD LUCK

 If you can spend time to search out the place thats right for you then you might find "relatively" inexpensive.  We are entering a period that no matter what you do, getting your name on the title should be profitable. Good Luck Charlene

The improvements you mentioned have very little to no effect on a value depending on location. There are many things you could do to a place that if the location is bad enough that they would make no difference.

Generally the most important improvements are to the bath and kitchen. If you intend to own and operate for a longer period hardwood floors are really better than carpet.  The newer laminates and vinyl wood flooring are cheaper and hold up well for a rental. If you are just trying to sell the property I think new carpeting is good because its less expensive than new flooring and the average person doesn't even think how carpet might wear. It smells and looks so good that its not a problem. When looking a properties that were built before the 70's they may have real hardwood under the carpet and can often not need anything except carpet removal and possibly clearcoat.

You ask about tax and that depends on what you are doing with the property. You always get a break if this is investment.  You change the basis in your property. See the difference between repairs (expense) or improvements (depreciation).  If its your own home you get an exemption on the gain when you sell your own home so almost any money spent will give you the advantage of enjoying while you live there or making it easier to sell but since you can avoid the gain, you have no real tax benefit

You will find out if the appraiser had any comps when they make their report.  I would liken it to going out on a date, sure you want them to like you and you will find out soon enough, but you also want to see if you like them.  And to do that you have to let them in and give them the time they need to check out your property. 

Hi Christopher   I like the metaphors mentioned previously and they seem to help. I believe in most good deals its good because it is good for both sides. They both get what they want, also the timing could be really important. If you are comfortable to proceed on your own then you should, like getting it in writing. The problem of explaining it to your agent need not bother you to the extent that you found it on your own. I imagine they have had clients who have lost interest in looking because the client no longer needs them. Good Luck