All Forum Posts by: Yinna Wang

Thanks for replying @ashishacharya 

Is it possible it's different in New Jersey? We do file jointly, but apparently if we own the LLC as a partnership, then I would also have to qualify as a real estate professional. Last year I filed as active participant, which only offset 25k, and left the bulk of my income subject to self employment tax.

My husband and I own rental property together, we are both on the deed. My husband qualifies as a real estate professional for tax purposes. We want to use that to offset my income, as I am the higher earner (I have a regular job). Our CPA set up an LLC for our rental property but he says it needs to be in my husbands name (single owner llc) in order for the losses to offset my income. We can't have it as a partnership LLC, for example. Apparently this is how it works.

We want to eventually transfer the property into the LLC. The issue is that doing so would make my husband the sole owner of the rental property. He would be the sole owner of the LLC, which then owns the property, essentially.

This is not what we want. How do I keep my part of the ownership of the property while still benefiting from my husband's RE tax professional status? 

@Daniel Seigel same here

What if you are currently house hacking, with a homeowner's policy. Would you wait till the homeowner's policy is up for renewal and then change it to a rental policy? Can you have a rental insurance policy if you currently reside in one of the units?

So:

196k purchase price

50k downpayment 

50k reno

Then property appreciated 100%, so now its worth 392k

You did a refi, pulled out 80% of 392k which is 313k. Paid off the original mortgage of about 140k. Which left you about 173k for the next deal.

Does that sound about right? I’m planning on doing something like this with my property as well so trying to follow the math/logic. There’s definitely a few bits missing like closing costs, cost of refi, etc. 

Also, how did you follow your appreciation, did you get the property re-appraised? 

How much did all the reno costs add up to?

Whats the 3%test?

It's commonly stated about laminate. From www.bestlaminate.com:

Installing on uneven sub-floor

Quality of your sub-floor plays very important role in laminate flooring performance. Many older houses have imperfect sub-floor and installing too thick laminate will be just wrong decision. What will happen? Your laminate floor will flex up and down, adjusting to your uneven sub-floor, and the end effect will be damaged locking system, micro-gaps between boards and poor floor performance. Ideal situation is when you can check your sub-floor quality before laminate flooring purchase and then make adequate decision. Installing thicker laminate will add value and durability but what is most important it will add strength to the locking system. But if your sub-floor has major problems, do not expect that underlayment and 10mm thick laminate will take care of it. Unfortunately you have to fix your sub-floor first to fully enjoy your new floor investment. 

@johann jells 

It's commonly stated about laminate. From www.bestlaminate.com:

Installing on uneven sub-floor 

Quality of your sub-floor plays very important role in laminate flooring performance. Many older houses have imperfect sub-floor and installing too thick laminate will be just wrong decision. What will happen? Your laminate floor will flex up and down, adjusting to your uneven sub-floor, and the end effect will be damaged locking system, micro-gaps between boards and poor floor performance. Ideal situation is when you can check your sub-floor quality before laminate flooring purchase and then make adequate decision. Installing thicker laminate will add value and durability but what is most important it will add strength to the locking system. But if your sub-floor has major problems, do not expect that underlayment and 10mm thick laminate will take care of it. Unfortunately you have to fix your sub-floor first to fully enjoy your new floor investment.

Another thought, the floors are also really slanted, and click floors need a relatively flat surface. Now we're talking about a new level subfloor for the whole place. Carpet it starting to look like the only reasonable way to go without breaking the bank...