All Forum Posts by: Umair Ahsan

Lets! I'll bring my tax returns

Hey Raha :)  Sounds great, you got this!

congratulations!

All things equal LLC is always a better option it takes just 2 forms to start one (one for IRS one for the state) but I believe the op is asking if it is kosher and if there are any special steps to take before setting up an LLC while still having a mortgage on the property in his name and also residing at the property. I am also wondering the same thing, does anyone have an answer?

Josh,

Sounds like a good plan, I was also entertaining a similar idea.  Couple things you may have already considered that could shave off some of your returns:

First, a 203k contractor and renovation will likely be much more expensive than a cash financed renovation.  Though with 203k contractors you'd likely get higher quality work due to the mandatory inspections.

Second, if you do a condo conversion or sale after a year you'd likely run in to TOPA and have to pay off your tenants.

Best of luck! I'm also a novice myself but PM me and I'd be happy to meet and talk more about this stuff

Thanks all for for your comments.  It's very helpful and a very tough call, as it could be a manageable repair or it could be extremely costly.  I've decided that I won't go through with the deal unless the seller can provide access to the crawl space for further inspection (we'll have to cut a hatch in one of the closets).   I hope that they agree but it's a long shot.. 

I have a duplex under contract here in DC.  The floor of the first floor unit is dipping in and many of the corners aren't quite 90 degrees.  All signs of floor joist rot, damage or settlement underneath.  There is no basement or access to a crawl space underneath so it is not possible to tell the extent of the damage or get quotes on repairs.  It also makes it harder to repair as the floor must be torn up to access the joists underneath.  The contract has an as-is inspection contingency so I can still get out of it.  I may be able to negotiate a credit but not sure as DC is a sellers market.  The second floor unit looks just fine though, and the first floor unit sagging is isolated to one side, likely damage to just 1-2 floor joists.  

I'd appreciate any advice.  There is a bit of a risk here.. can't quantify the repair cost... what would you do?