All Forum Posts by: Victor N.

Slightly off topic, this is one of the reasons why I always negotiate the due date on rental mortgages to fall on the 15th and carry reserves. I would also transition to collecting his rent on the 15th and raise rent when you have the empty unit rented. You should think about minimizing expenses (turnover) and maximizing cash flow even before tenant training. Btw, I always charge late fees and post Pay or Quit Notices. I also work with tenants working out payment up front because they are obviously worried about paying me and will try to do so. Let him decide if he will pay your higher rent when the time comes, don't assume he won't especially on the 10th of each month. Those are my thoughts, the neat thing is you get to run your business the way you want to do.

On the income tax return, I would allocate the expenses that are common to both units based on square footage (mortgage interest, property tax, insurance, depreciation, yard maintenance and the like). I would charge all repairs, maintenance, utilities while vacant, lease up and make ready 100% to the rental unit. If you haven't already, I would open a separate bank account for the rental and pay its proportionate share of these expenses from the rental account and your personal share from your personal account. While I am an accountant and tax professional, I am not your tax professional so you should consult your own tax advisor.

We are running ductwork for the entire house.  One bid is to put the furnace in the attic.  Another puts the furnace in a utility closet to be built.  This house is on a crawl space, no basement.  As I think about it, I am not sure the existing units are vented in the house I am doing which would obviously be an issue.

From that angle it looks like a vented gas space heater. I have some in a house we are remodeling and the City Building Inspector told me that he wouldn't give me a certificate of occupancy with them in it. We are putting in ductwork and a forced air gas HVAC system. My HVAC guy is using the gas line from one of these units to supply the new furnace.

Where do you buy flooring (luxury vinyl plank "LVP") in the Kansas City area? I live in South Central Kansas but I am helping my parents remodel a 3 bedroom 1500 square foot house in the Olathe area. I am looking for the best pricing. Thank you in advance.

You should not have the tenant pay for repairs and deduct it from the rent. It sets a bad precedent and encourages the tenant to contract future work to "help you" and then deduct it from the rent. You also lose control over the choice of contractor, the price and the acceptable quality of work. Why is the tenant offering to pay in the first place?

Almost all collection law firms work on a contingent fee basis. Call the court clerk and ask for the names of the firm's that file the most collection cases. You could also call your lawyer and ask for referrals.

A mobile or manufactured home can be a principal residence for purposes of the Section 121 exclusion of capital gain. It sounds like you lived there and used it as your principal residence for 2 of the last 5 years. The test for a like kind exchange under 1031 is different only applies to property used in trade or business or for investment. That doesn't include a principal residence and can require that the home be real estate if you wished to replace it with real estate. (must be a like kind exchange). As always, check with your tax advisor but 121 should exclude a gain of $50000 from tax in your case.

It depends on the state because every state is different.

no and yes