All Forum Posts by: Terrell Garren

Worth watching. https://www.youtube.com/watch?v=XdSp5GXbiE4

@Christopher Smith Wow, very good link.  I did not know - Repair type expenditures made before the building or apartment is put in service (i.e. has a tenant) have to be capitalized.  Consequently, if a taxpayer purchases a building which comes with the need to fix or repair a lot of deferred maintenance before being able to rent it, those expenses still must be capitalized; they are not a current deduction.Thank you.

Thank you @Cody L.  It's only me going to Home Depot 3 times a day and I can't even keep up with that. I appreciate your insight. 

I am a buy and hold guy. Around 14 SFHs, annual gross around $120K and net around $30K. Just completed a SFH remodel to be rented. Purchase was $72K and upfit was $27K.

Do I have any leeway and any recommendations regarding tax strategy E.g. Leave the capital cost basis at $72K and write off the $27K as operating expense?  Or increase the capital cost basis to $99K for higher annual depreciation?  Or pick the true capital items (roof, HVAC) to add to the cost basis and expense the rest?

So you are thinking, what did I do the other 13 times.  See 5th Amendment. 

@Andrew Johnson is absolutely right.  I have twin sons that just finished Med school.  The last thing they needed to be doing was being a landlord.  Your Med school and exam grades will determine your match and where you do your residency.  Your residency will determine your longer term career - Fellowship, attending physician, location, pay, etc.  Put Millionaire Next Door and White Coat Investor on your M4 reading list.  Good luck!

@sony 

@Sonya Antrobus Please send your husband to live with with me.  My wife will be happy that repairs get done around our house, your husband will be happily busy, you will be happy he is out of your business and I will be happy spending my time on deals and PM.  

@Isiah Ferguson The bid feels $1,500 high, could be the duct work though. Have Concord HVAC give you a bid.  They have done around 8 replacements for me and the price and quality has always been first rate.  They are also very good on responding to service calls as well.  Ask for Eugene.  

Care for my property, selection and retention of good residents, cost, understanding the business, building relationships (e.g. Skilled trades) and satisfaction.  

There are some excellent YouTube videos on real estate LLCs.

Have someone that knows what they are doing look at the foundation, roof (down to the sheathing), electrical and plumbing. Don fret the small stuff - dirty, smelly, holes in walls, etc. as that is equity waiting to happen.  I love the smell of pet urine in a property for sale...