All Forum Posts by: Victor N.

I wouldn't buy without a clean title insurance policy. The difference may be the cost of clearing the title or the value of the potential claim. I suppose if you were willing to take the risk of adverse claim it might work.

I agree with the overwhelming majority of the responses; if you want financial freedom and to be an investor, sell that truck and put the equity to work. My approach to needing reliable transportation to drive about 40,000 miles between our two drivers is I own 6 paid for vehicles. We own a 2011 Chevrolet Impala, a 2006 Honda Civic, a 1994 Ford Ranger (work truck for rentals & rehab), 1986 Ford Bronco (yes a bit of my toy) and a 1986 Ford 1 ton box truck (also REI truck). I only carry full coverage on the Impala. My wife and I have W2 jobs we need at this point with commuting requirements. If one of my vehicles won't start or is down for maintenance, no problem, jump in another. I achieved this redundancy with 3 vehicles on my own. I paid no more than $20,000 cash for all 6 vehicles spread out over years and using savings every month. Just saying.

I would deduct a fair market value of the quilt from the last payment. Remember that fair market value does not include sentimental value. Also, both contractors probably have mechanics lien rights that could encumber your property for the amount of their claim. You should review the applicable state mechanics lien law. This is not legal advice as I am not a licensed attorney, consult independent local counsel.

I would ask 3 local contractors for bids if possible

The applicable long term capital gains rate depends on the level of your other income. It sounds like that may be low so I would check with your tax advisor to find out your applicable rate.

If you immediately serve the 3 day pay or quit notice and immediately engage competent counsel, they should be out in less than 30 days depending on whether they try to contest anything. Time to get moving.

The depreciation deduction is generally equal to the (purchase price less land value) divided by 27.5 years if it is a residential rental. The land value is probably less than 20% of the purchase price so your depreciation deduction is probably understated. Depreciation the first year is essentially prorated based on the month the property was put in service. The purchase may include tangible personal property like appliances which will have a more accelerated depreciation recovery period. A landlord also deducts the actual maintenance expenses and recognizes the vacancy loss through decreased rent. The answer to your general question is yes it is common for a financed cash flowing rental property to show negative taxable income which may offset other income depending on the application of the passive loss rules to your situation.

If there is not enough value to cover the mortgage payoff balance plus all fees and closing costs and commissions, then this a short sale situation. That means you are negotiating with the bank not him. Remember the divorcing spouse also must be paid. I think the deal is too thin so I would walk.

@Evan Bell Remember that your capital gains tax is based on the difference between your adjusted income tax basis and your sales price. When you inherit property the basis is stepped up to the fair market value of the property on the date of the decedent's death. The holding period is long term for inherited property. You may have some depreciation recapture depending on how long you have held the property. As part of your analysis, consult your income tax advisor to calculate the income tax cost to sell as well as the cost to do a 1031.

Have someone there prepared to change the locks and to set any personal property out on the parking off your property. My experience in Kansas is that the Deputy Sheriff will only physically evict the tenant, you have to keep him out. Do not agree to let him back in to retrieve his stuff or you may have start all over.