All Forum Posts by: Todd Rasmussen
Todd Rasmussen has started 29 posts and replied 1457 times.
Post: Spouse dying investing life insurance money
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Well that's some **** news. I'm sorry for what your family is and will be going through.
Taking a HELOC as a down payment will not work for a period of time, (2-3 months) as the lender will require you to source large deposits during underwriting and a borrowed down payment won't be allowed. This is commonly referred to as seasoning if you wish to do more research on that specific topic.
Without getting all of your financial details, I could only offer some generic methods for you to determine what paths are available to you. Take your husband's annual income, subtract the additional income you will make, divide it by the expected proceeds from his life insurance policy and multiply that by 100. That is the return you have to get to maintain your lifestyle. If that is not feasible, you have to work both sides of the equation and reduce expenses as well as generate additional income.
My father in law was told he had a few months to live. He started eating three almonds a day and 20 years later swears that was the difference. May not help, but it couldn't hurt.
I'll be praying for your family.
Post: Do these goofy letters actually work?
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Quote from @Sylvia B.:
In 2011 we bought a piece of land between our house and the paved road so that we could put in a driveway and avoid using the (terrible) county road. It came with a house, so we started our landlord adventure. That parcel was put in an LLC with other rentals and all was good.
About 2 years ago we decided that it would be best if the land that the driveway is on was owned by our trust, just like our house, so we split off the part with the rental house and deeded the rest of the land to our trust. Again, all was good. If we ever decide to sell, the driveway goes with the house, or if we decide to sell the rental, we retain ownership of the driveway and the woods that screen our house from the paved road.
So for the past year we have been getting letters like this once or twice a month:
They obviously got the information from tax records - "recently" sold properties. I guess they assumed we bought the property and are now regretting that purchase and looking for someone to give it to. The market value of that land is $2000-2500/acre - about $48,000 to $60,000.
What idiot would fall for such a scam, especially in this this red hot market? And how do they arrive at those ridiculous numbers?
Hence the title, Do these goofy letters actually work?
If you are going to make bad offers you have to make a lot of them. Direct mail is the easiest place to do that. Wouldn't work on me, but plenty of people aren't fluent in money.
Post: Large influx of money, no idea where to start. Need help!
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Quote from @Jacob Setzer:
Hey BP community, I've gotten extremely lucky over the past year or two in the crypto space and am looking to diversify my portfolio into more "real" assets. Purchasing real estate (likely for rentals) is the market that I've been leaning towards getting into the most. But besides somewhat blindly purchasing my first house I'm pretty much clueless here :)
I'm looking for any tips, tricks, advice, incredible threads in the forum that I can use to further research the space. My primary goal is to build up a stable of rental properties, and continue to grow those properties with either the equity gained after sale or cash that comes from them. I also am currently in AZ, with my eyes on CO, but wouldn't necessarily be averse to purchasing in other locations.
My current financial situation:
- Income is up and down as I quit my full time job to become essentially a crypto day trader late last year. I'm conservatively planning for my income to be around 90-100k annually going forward.
- Assets are:
- 750k-1 million that I plan to use to invest in real estate with
- Current house where I have around 125k-150k in equity
- 60ish k in 401k
- no major debt besides the house
Any help would be greatly appreciated!!
- Jacob
Solid strategic move. Network your a$$ off. Leaving a job for less guaranteed income is going to prove difficult for financing. Nothing makes a bank feel safer than a w2.
Good luck, we'll be around when you need us.
Post: Which Matters More: Lower APR or Lower Monthly Payment?
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Quote from @AJ Satcher:
*Title Edit: Which Matters More: Lower Interest Rate or Lower Monthly Payment?
Novice Investor here
Would it make more sense to go with:
- higher interest rate
- less money down
- no PMI (bc of higher interest rate)
vs.
- Lower interest rate
- More money down,
- With PMI
Evaluating both options against one another is looking like the higher interest rate with less money down and no PMI causes monthly payment to be less.
Let me know what you think!
Post: Landlord insurance, does it work?
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Quote from @Eric Fietz:
I see a lot of posts on here about the costs of repairing intentional damage from tenants when they move out. I have LL insurance that is supposed to cover such damage to a certain extent. Is this type of coverage useless or are the posters not using this type of insurance plan? I'm fairly new to this so would appreciate any feedback.
If you think your rental dwelling policy is covering any of this damage you are incorrect; if you have some special tenant intentional damage type policy then I think you would be in the minority. Most investors I know choose to retain that risk.
Post: I have a very confusing depreciation situation. Can anyone help?
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Quote from @Sean Wallace:
Rental property is a duplex.
2019 - Lived in one side, rented the other. Claimed depreciation. (Not sure what options I chose to depreciate with.)
2020 - Lived in one side, rented the other. Did not claim depreciation. (Didn't want to do it wrong because I didn't remember how I did it in 2019.)
2021 - Rented out both sides. Doing my taxes now and want to claim depreciation. (Still not sure how I did it the first year.)
I know I'm in desperate need of a CPA and should have used one to begin with but I'm learning as I go & Currently, I cant find a CPA that's taking new clients.
I have some very confusing questions regarding this situation and an answer to any of them is much appreciated!
Questions.
1. Does it matter what options I picked? e.g - 27.5 year property, 25, year property. Also MACRS 200%, 150% or straight line.
2. If it does matter what I used the first year. How do I find what I chose? (Does not show on transcripts from IRS & cant find it in transcripts from the software I used.)
3. Do I HAVE to do the amendment for 2020? If not what am I missing out on if I don't?
4. Does me renting out both sides in 2021 and in future years change the way I have to do it even if I found out how I did it the first year?
5. If it does change the way I have to do it do I need to let someone know I'm changing it and why?
A) Take your 2019 Depreciation and multiply it by 27.5. Does that match your depreciable expenses in 2019 (Cost of home plus some eligible closing costs minus value of land)?
B) Did you make any capital investment in the property in 2020 or 2021?
If A=yes and B=no, then your 2019 and 2020 depreciation should be the same and your 2021 depreciation should be twice what you claimed in 2019.
If A=no, then you messed up 2019. If you used tax valuation anywhere to figure depreciation, you messed up 2019.
If A=yes, and B=yes then 2019, 2020, and 2021 will all be different amounts.
I use excel to keep track of depreciation so I can answer the question, "wtf did I do last year?" Stessa is a free web based service that can also track depreciation for you as well.
Something like this:
| Depreciation and Capital Expenditures | 410 Pacific | ||||||
| Item | Property | Closing | Flooring | Appliances | Remodeling | Windows | |
| In Service | 2020- March | 2020- March | 2021- Mar | 2021- Feb | 2021- Oct | 2021- May | |
| Basis | $ 37,419.00 | $ 965.60 | $ 5,712.00 | $ 2,920.00 | $ 7,720.00 | $ 3,800.00 | |
| Recovery | 27.5 yrs | 5 Yrs | 5 Yrs | 5 Yrs | 27.5 yrs | 20 Yrs | |
| Convention | MM / SL | MM / SL | MM / SL | MM / SL | MM / SL | MM / SL | |
| Year | Total | Land ($9,355) | |||||
| 2017 | $ - | ||||||
| 2018 | $ - | ||||||
| 2019 | $ - | ||||||
| 2020 | $ 1,246.27 | $ 1,077.29 | $ 168.98 | ||||
| 2021 | $ 3,241.54 | $ 1,360.55 | $ 193.12 | $ 999.60 | $ 511.00 | $ 58.52 | $ 118.75 |
| 2022 | $ 3,750.77 | $ 1,360.55 | $ 193.12 | $ 1,142.40 | $ 584.00 | $ 280.70 | $ 190.00 |
| 2023 | $ 3,750.77 | $ 1,360.55 | $ 193.12 | $ 1,142.40 | $ 584.00 | $ 280.70 | $ 190.00 |
| 2024 | $ 3,750.77 | $ 1,360.55 | $ 193.12 | $ 1,142.40 | $ 584.00 | $ 280.70 | $ 190.00 |
| 2025 | $ 3,581.79 | $ 1,360.55 | $ 24.14 | $ 1,142.40 | $ 584.00 | $ 280.70 | $ 190.00 |
| 2026 | $ 2,047.05 | $ 1,360.55 | $ 142.80 | $ 73.00 | $ 280.70 | $ 190.00 | |
| 2027 | $ 1,831.25 | $ 1,360.55 | $ 280.70 | $ 190.00 | |||
| 2028 | $ 1,831.25 | $ 1,360.55 | $ 280.70 | $ 190.00 | |||
| 2029 | $ 1,831.63 | $ 1,360.93 | $ 280.70 | $ 190.00 | |||
| 2030 | $ 1,831.25 | $ 1,360.55 | $ 280.70 | $ 190.00 | |||
| 2031 | $ 1,831.71 | $ 1,360.93 | $ 280.78 | $ 190.00 | |||
| 2032 | $ 1,831.25 | $ 1,360.55 | $ 280.70 | $ 190.00 | |||
| 2033 | $ 1,831.71 | $ 1,360.93 | $ 280.78 | $ 190.00 | |||
| 2034 | $ 1,831.25 | $ 1,360.55 | $ 280.70 | $ 190.00 | |||
| 2035 | $ 1,831.71 | $ 1,360.93 | $ 280.78 | $ 190.00 | |||
| 2036 | $ 1,831.25 | $ 1,360.55 | $ 280.70 | $ 190.00 | |||
| 2037 | $ 1,831.71 | $ 1,360.93 | $ 280.78 | $ 190.00 | |||
| 2038 | $ 1,831.25 | $ 1,360.55 | $ 280.70 | $ 190.00 | |||
| 2039 | $ 1,831.71 | $ 1,360.93 | $ 280.78 | $ 190.00 | |||
| 2040 | $ 1,831.25 | $ 1,360.55 | $ 280.70 | $ 190.00 | |||
| 2041 | $ 1,712.96 | $ 1,360.93 | $ 280.78 | $ 71.25 | |||
| 2042 | $ 1,641.25 | $ 1,360.55 | $ 280.70 | ||||
| 2043 | $ 1,641.71 | $ 1,360.93 | $ 280.78 | ||||
| 2044 | $ 1,641.25 | $ 1,360.55 | $ 280.70 | ||||
| 2045 | $ 1,641.71 | $ 1,360.93 | $ 280.78 | ||||
| 2046 | $ 1,641.25 | $ 1,360.55 | $ 280.70 | ||||
| 2047 | $ 1,244.69 | $ 963.91 | $ 280.78 | ||||
| 2048 | $ 280.70 | $ 280.70 | |||||
| 2049 | $ 81.91 | $ 81.91 | |||||
| 2050 | $ - |
Post: Informed tenant of raising rent, they claim they can’t afford it.
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Quote from @Mark Eaves:
@Matt M.
Being a free citizen of the United States of America I’ll say what I want where I want.
Your permission or duty to speak comes on much greater authority that the USA. Peace brother.
Post: Informed tenant of raising rent, they claim they can’t afford it.
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Quote from @Matt M.:
Not trying to be rude, but we’re all here for real estate. Not churchy stuff, I’m sure you can find that in a different group.
You sure don't speak for me. For those that believe in and are saved by Christ it all becomes churchy stuff and there is no differentiation. The only rational thought you might have for your reply is that you believe Mark's post to be a waste of time. Your argument there would be understood, but if that were so your post which provides zero assistance to the OP is even more inappropriate. Maybe it is you that is in the wrong place? Not in not being welcome here, but headspace wise. The tolerance threshold you are giving off seems to be zero...
Post: How to deal with stubborn tenants?
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Quote from @Jaron Jackson:
I bought a small multifamily property towards the end of December, which is located right outside the Atlanta area, with a tenant already living in one of the units. I am self managing the property as well. I think I have pretty good customer service skills and I say that because I always email or write my tenants a letter with respect and professionalism. Unfortunately, the tenants didnt like the change in ownership and feels as though they dont have to pay rent to a new owner since they didnt sign their current lease with me , the new owner. I would have loved to create a new lease for the tenants but they have stopped all communication with me after expressing that they dont want to pay me a dime. I proceeded to move forward with the eviction process after making it perfectly clear that I wanted to work something out with them(even offering to waive the late fee penalty). We finally had our court date at the end of February so I am down 2 months rent. Per the court order, the tenants must be moved out in the next few days but they havent even started to pack or anything. I fear that they will continue to be stubborn and not budge. To make matter worse, the local sheriff will not be available to come out to the property until a few weeks from now. I don't want to continue dealing with the tenants for another month. Any advice on what I should do? Thanks
Find out who at the law enforcement agency is in charge of scheduling their evictions and do your best to engage them. "I'm new and want to make sure that I have all the documents you need or need to make sure I've done everything I'm supposed to because I can't afford to get back in line" is a good segway into, "please don't make me wait in line with everyone else." If you catch a break, don't share it as causing someone you will have future interactions with to catch some flak for doing you a favor is not advisable. Good luck!
Post: Captain Gains Tax advice
- Rental Property Investor
- Clarksville, TN
- Posts 1,483
- Votes 1,420
Quote from @Rachel Czer:
Hello looking for a tax professional to help me with navigating capital gains tax on a primary residence.
williambingleycpa.com