All Forum Posts by: Account Closed

Hello BP - Has anyone done depreciation tax credits when House hacking? From what I have gathered on several financial advice websites, in order to calculate depreciation for an owner occupied rental/duplex you follow the below steps:

1.  Determine the house/building value separate from the land
2.  Divide this amount by 27.5 and claim the pro-rata(percentage of owner occupied vs rental occupied) amount as the depreciation expense for the year.
3.  If the rental was not in service for the entire year they provided a prorated percentage for each month - mine was a true rental in Aug 2020 so I use 1.364% of the depreciation amount.

Is anyone a CPA that can confirm this or am I completely off? I have listened to a few podcasts with a CPA and they did note that usually these calculations are a complete mess. 

Find a home with a mother in law suit or additional dwelling unit that you live in. Rent the other building out and your now house hacking!

@Jill F. Appreciated. Thank you!

@Bob H. - Thank you so much for the reply! I was actually thinking about doing a template with plywood and then cutting the laminate to the template. I have see a miter edge beveled in a way that it is more flush together then secured with adhesive... I know this one is more tricky than a normal kitchen, but I think the plywood strips/cardboard would be worth it. I have seen support beams go into corners were there is no counter edge as well so thats an additional step I will take. Thanks again for your input! Very appreciated.

Hello to all reno professionals!

I am currently renovating my live in house hack. The cabinets have been bought and I will be installing them. The kitchen countertops however, I am unsure what is the best action to take? The walls are angled and I am not sure how to accurately measure the angle to cut the countertop? Is there a tool or technique anyone knows of? I am planning on laminate countertops but I have not seen any videos or articles explaining the best way to do this? I feel that this may be way over my head and its best to get these fitted and installed by a contractor? I know Ikea has budget friendly laminate countertops and they have installation service. Although I am keen on learning everything reno from first hand experience, is this something I may be able to figure out myself?

Thanks!

Phoenix AZ or Flagstaff AZ

Just by reading the title... Thats what I did. I moved back to Columbus in 2019. And SO GLAD that I did. I have learned new skills in home renovation and bought my first house hack where I live for free. Only you can make that decision, but I think Columbus market will experience steady growth in the next 10-15 years.

Hello!

I have been looking all over BP and cannot find a "HELOC Guide"? I should pick up a book about real estate finance very soon... Any suggestions? I know the Book with no and low money down from BP Might be a good buy as many real estate investors reference that book in their "favorite book" Podcasts.

My Question is : How much equity minimum do you have to have in your home in order to get a HELOC? I estimate that my home is around a $235,000 value (market appreciation and sweat equity in the ADU). The outstanding balance is approximately $212,000. Is $20,000 enough minimum to take out for a heloc? I am trying to buy another rental in 2021 and I know I will have more equity in the home by then as I live in a nice area that's appreciated at a healthy rate. My plan is to put money down with my savings + home equity.

Any input is welcome. Thanks!

To add on... local Credit Unions are awesome if you can find one that will lend to you for an investment Property. Some are memebership only but they are way better than the big banks.

When its labeled as "easier" its b/c relative to other ways of obtaining real estate investments, its much easier with financing and you can manage it your self. Landlording on training wheels. 

Some things to consider, buying a home that has existing tenants in one side of the duplex(not usually ideal), how much do you have for a DP and any rehab costs, living in close proximity to your tenants(how comfortable are you with that?) and after you move out how will this property perform(will it be cashflowing or cashflow negative?). These are things I would think about... Long term and short term.