All Forum Posts by: Steve Hyzny

With the cost of eviction, loss of rent and repairs to rent to who?

If your tenant is being evicted who is going to rent it?

The problem is the the people stocking up running their credit cards up, then loosing their job, and then loosing their house.

I have had a tenant for 10 years, she lost her job for 6 months, she worked to get help to cover her rent, in the end when she got a job she was 2 months behind, I took the amount and split if over 2 years and added it to her rent as an increase. She has been paying for the last 3 years, I hope I don't have to do this, I have some tenants that are on government paychecks already so I expect them to be able to keep paying. I don't like leveraging my properties to grow faster, because I've seen issues pop up and people that are leveraged loose what they have. 

I hope local government would hold off on property taxes, so i can hold off on a little rent until we all recover.

Being from IL, I would recommend avoiding that state, taxes will easily eat into cash flow. I have started to look out of state and was about to close my first deal in Vegas this month and have decided to wait to see how the economy washed out. 

I chose Vegas because I think it was a growing market, plus I like going there myself so was looking at a little tax break by writing off visits to Vegas as I check on the property and work with the local team. When the dust settles I hope to find a good property and begin again.

The security Deposit is for damages not contractual issues. If they left it in good shape be happy and make sure the next tenant is aware of the lease provisions on extra tenants. Is it worth it, remember your reputation.

I would recommend the vinyl flooring that does not use glue and use the padding under it to dampen the sound. this way you preserve the hardwood and provide a little relief from the sounds above.
You also need to consider if you will ever not use the building for a rental. If its always a rental and not your home, do you really need to worry about preserving the hardwood floors?

My accountant told me I would have to pay the gains, but I have listened to a few podcasts and they only talk about paying taxes on the interest and never mention the capital gains. I was looking that when I sell a house I have to pay the gains as I now become the bank in the equation.

I hear and have read a lot about seller financing from the buyers side. My big question is if I sell a house I own outright and want to sell it with seller financing what are my tax liabilities.

I know I have to declare the interest from payments.

do I have to pay capital gains when the house sells. Not sure why a seller would want to take the tax hit and collect payments from the buyer.

Investment Info:

Single-family residence buy & hold investment in Park Forest.

Purchase price: $27,000
Cash invested: $10,000

Single family 2 bed 1 bath, slab foundation

What made you interested in investing in this type of deal?

House had good bones, easy fixup, easy to rent

How did you find this deal and how did you negotiate it?

Redfin.com has many of the properties I bought listed.

How did you finance this deal?

Cash

How did you add value to the deal?

REmodeled Kitchen, new carpet in bedroom, new window air unit in bedroom, new garage door opener, yard work

What was the outcome?

Solid renter

Lessons learned? Challenges?

Watch the taxes, property taxes limit profits