Can my son live in an apartment I own with no tax consequences? Real Estate |
- Can my son live in an apartment I own with no tax consequences?
- Tenant becoming mentally unstable (Los Angeles)
- Looking at buying a home to rent out, did research and built a spreadsheet to help me figure out investment returns. What do you guys think?
- Self Employment P&L for Loan Question: How to report taxes?
- Barn to apartments
- Did you regret buying a weekend/vacation home?
- Buying/Selling without an Agent
- Associate Agent with Redfin
- Most millennial homeowners have buyer's remorse, a new survey shows: CNBC
- Items removed that were under contract
- New Construction: Appliance varies from other homes in neighborhood
- Thoughts on Long Island City (NY) Currently?
- Move in dates
- Changing the color on a spec house (new build)
- [MD] 05/09/2019 closing, when/if to rate lock
- Buying
- Are drainage tiles a red flag?
- Rent my house while I live on my boat at my dock?
- Appraisal that's factually inaccurate?
- Unable to view house because of current tenants
- New to investing. I goot some questions
- Will getting a second appraisal hurt us more than help us?
- Appraisal/Value/Real Estate Agent ???
- Effect of rent control on home prices?
- For sale by owners with buyers already decided
| Can my son live in an apartment I own with no tax consequences? Posted: 28 Feb 2019 02:06 PM PST My son is moving to Georgia for a new job and I am considering buying an apartment there for him to live in and eventually rent out. The apartment is in a building with an HOA and their policies prohibit anyone other than the owner or spouse of the owner to occupy the property. However, if the property is owned by an LLC, the HOA allows for the LLC to designate an occupant of the property. I have been exploring the option of forming a single-member LLC, which obviously is a pass-through entity. The question is this: My son will be paying for the monthly HOA dues as well as the property tax on the property. Would this be considered taxable income to the LLC? If he were to simply transfer me x amount of dollars per month, and then I were to pay the HOA and tax bills myself, would this technically be considered tax fraud? [link] [comments]  |
| Tenant becoming mentally unstable (Los Angeles) Posted: 28 Feb 2019 09:45 PM PST My wife and I inherited several tenants 5 yrs ago when we bought one of our 4-unit properties in a rent controlled area of LA. One of which is a 60-ish year old man who has always been slightly eccentric and needy, but overall is very sweet and harmless. We'll call him "Larry" -- Larry's unit has always been clean and very well kept with the exception of one of his two bedrooms that is filled with boxes and personal items and stacks of clothes. He always pays his rent on time and we don't hear from him much at all. A couple of months ago we were awoken at 4:30am by a series of phone calls from the tenant below Larry's unit, saying Larry had called 911 and the police and paramedics were were at the building and could not get into the unit. I went to the building and opened the door. We found Larry perfectly fine on the couch, but he was very confused. His unit was a complete disaster. The stacks of clothes and personal items had carried beyond the bedroom to all over the entire unit. Paramedics checked Larry out and he was fine and back to his senses shortly after we arrived. They took him to the hospital and he was back home later than morning. Since then, my wife and I receive a phone call from Larry every week or so, each one getting worse than the next. Larry complains of other tenants stealing or siphoning his electricity. He claims people are trying to steal his unit. He claims people are trying to break in. He claims people are watching him. He even changed his locks on his own and has yet to give us a key. He forgets that he paid his rent and calls us crying, asking for us not to kick him out. But he always pays his rent on time. He is obviously deteriorating and we're at a loss of what to do. We have no contact for any family for Larry. We spoke to a lawyer who told us to call a City health inspector. We know this is going to get worse and want to be proactive. Not only for our investment, but for Larry's health. FWIW, we self manage our buildings. Thanks in advance. [link] [comments]  |
| Posted: 01 Mar 2019 01:07 AM PST First, here's the link to my spreadsheet: https://docs.google.com/spreadsheets/d/1eHeFKuGmXXmmSchyrRqemAY_p9d9RTf4YpV7G7sfdCw/edit?usp=sharing I may have gotten a lot wrong, I have no idea, but I'm just curious what you guys think about it. Context: Looking to buy a 270-282K house, 3,000 Sq Ft. I guessed that closing costs when buying could range from 2-5%. I doubled it to account for costs when I eventually sell, as well as agent costs? So my worst case cost is looking like 10%, and that's what I use as my baseline cost of investment I think looked at the monthly costs, calculating against a 3.5% and 4% interest rate. I looked at how much of my mortgage payments would go to principal, and used that principal as "revenue" On the bottom left are my final profit/investment tables Are there any variables that I am missing, or that I have gotten wrong? Some things I already thought of:
Bold numbers are the numbers that can be changed on the sheet, the rest is computed from those cells I am looking for a return on investment after 5 years, is that a reasonable expectation for real estate? [link] [comments]  |
| Self Employment P&L for Loan Question: How to report taxes? Posted: 01 Mar 2019 04:16 AM PST My husband is a self employed person. He has one consistent "full time" client (1099) and occasionally picks up other projects. We informed our mortgage broker we only want his base income from his main client to count towards our loan, but found out that the underwriter doesn't care and is concerned about his "drop" in income from 2016 and 2017 to 2018 by more than 25%. The reality is he has had the same main client since 2009 and his income history is way more stable than mine (and I'm W2!) but that doesn't seem to matter. The mortgage broker asked for a simple P&L and I put that together for him because he didn't have one. The only expense deductions he takes are mileage for a one day a week trip to the office, it's not much. But I did put in 35% deduction for taxes, which brought his 2018 income down a lot. What is the right amount to put for taxes when he files a married tax return? I make a lot so it bumps us into a high tax bracket, but we could make the case he pays the first % of income vs the last %. How do I figure out what to accurately list as taxes on his P&L? Also, any advice on how to get an underwriter to approve his income would be great. My mortgage broker said we need a letter and to redo the P&L. [link] [comments]  |
| Posted: 01 Mar 2019 04:48 AM PST Has anyone converted a barn into multiple apartments? I like the esthetic, and I know I could probably get at least 4 nice sized apartments in a barn. [link] [comments]  |
| Did you regret buying a weekend/vacation home? Posted: 28 Feb 2019 11:06 AM PST As a NYC city dweller. Owning something that ticks all the checkbox is near impossible. Considering the amount of money we spend going on vacation each year, we can use that to buy a very rundown house that will need a lot of work done. We did some research on zillow and we see that the price history (10years) for these houses only depreciate over time. Something that is over 150k 10 years ago is now 50k. There are also a lot of foreclosure available. What we are looking is something that is in the middle of the woods with a big fence yard for the dogs and the kids. The way we are seeing this is that this isn't going to be a profitable investment. It's like getting a car and will only depreciate in value. We are hoping that it will give our kids and us a good place to spend their vacation and weekend. Did anyone else had a similar idea and what are your experiences? [link] [comments]  |
| Buying/Selling without an Agent Posted: 28 Feb 2019 04:55 AM PST Background: I have been looking to buy properties to rent. My stepdad was talking to his friend about one of the townhouses that I was looking at and his friend said for that amount, I'd sell him mine (he has been looking to upgrade). The townhouse is newer, better shape and in a more favorable neighborhood. He would like to sell without an agent to save money which works for me. However, should I still get an agent (have a licensed friend that will give me the family discount)...just don't want to mess a purchase of this size up. I think it'd slow the process down, but would it actually be hard to do? Thoughts/advice? [link] [comments]  |
| Posted: 28 Feb 2019 12:51 PM PST I am thinking about leaving Keller Williams and applying at Redfin. Any AAs here that can tell me if the schedule is as flexible as they say and how much does it pay to do an open house, showing, etc. [link] [comments]  |
| Most millennial homeowners have buyer's remorse, a new survey shows: CNBC Posted: 28 Feb 2019 05:19 PM PST |
| Items removed that were under contract Posted: 28 Feb 2019 05:11 PM PST Seller removed washer and dryer, noticed during home inspection. Very clearly stated to remain in contact, doubtful it was anything more than a misunderstanding. If they don't return the exact ones how do I assign an appropriate value for them as well as consider the pain in the ass factor of purchase, delivery, and install? [link] [comments]  |
| New Construction: Appliance varies from other homes in neighborhood Posted: 28 Feb 2019 08:12 PM PST Hi, I'll start with TL;DR: My appliances are cheaper models than the ones included in the other houses. I have a simple question. I am buying a home in a new "pocket community" which is just 20 or so new homes. There are already 12 homes built and I am purchasing the next one that is coming up. I wasn't keen on the positioning of any of the existing homes except for one of them, and mentioned I liked the orientation of the one still in frame, but not the additional cost of the additional square footage. We were outbid by another couple on the house we wanted originally, but the agent came back a day or two later and offered us a "deal" on the more expensive house, basically giving a $20k discount on the price which was just about 5k more than the house we were looking at. Having gone through some of the other homes, I had saved numerous pictures on my phone including the "included" appliances + model number tags in all the homes so I could look them up, and found they were all really highly rated energy efficient units. Fast forward a month, it's closer to being finished, all of the surfaces seem the same, but I went to the appliances, and they were noticeably cheaper. I went back and checked, they look the same on the outside, but they were different down models of the same line. They seem to have done this to everything from the refrigerator, to the stove, to the dishwasher, even the damn water heater and central air conditioner. Looking at the cost differential for all the appliances, it came to about $12k. Now I'm mad. Did we get duped and they really just discounted the house because they cheaped out the appliances? Am I within my right to tell them that I know the other homes we had looked at had nicer things in them, and were thinking that was what we were getting too? Where would they have mentioned appliance models? I of course still have pictures of the other homes and model numbers as well as the ones we are due to receive. I asked my agent to follow up with them regarding my question on this matter, but feel duped. We're about to close in less than a month and really am pissed as to why they might have thought this would be ok. Any advice? [link] [comments]  |
| Thoughts on Long Island City (NY) Currently? Posted: 28 Feb 2019 08:05 PM PST Now that Amazon is no longer coming have prices been dropping back down some in this area? (As opposed to having future appreciation baked into prices when Amazon announced they would come) In general what are your thoughts of this area? Do you prefer commercial or residential? [link] [comments]  |
| Posted: 28 Feb 2019 07:34 PM PST Hi! So I'm looking for a home to rent because I'd like to give my dog a yard and for other reasons. However I'm leasing at an apartment right now. I read online when buying a house you can choose your move in date but could find nothing about renting. Would I be able to chose my move in date and if so, is there a limit to how many weeks/months I have? My lease is up in August but I'm looking now so I can be prepared financially and such. Any knowledge on this would be appreciated thanks! [link] [comments]  |
| Changing the color on a spec house (new build) Posted: 28 Feb 2019 03:47 PM PST We are in the process of closing on a new build which is a spec house, closing date later next month. The house is completely done except for the exterior paint which they can't paint until the weather becomes consistently above 40°. I've just found out the color of the house is white with white trim which is a current "trend" of farmhouse look. Their sales person said they always build a farmhouse styled spec house in every community as part of their "variety of houses". Most of the houses around are dual colored (white trim with another color) so I was caught off guard by this. They haven't painted the house yet so I asked for a color change but they said they can't, and that I would have to re-paint it after closing. My realtor thinks it's a cost issue but said she'd talk to them to see what can be done. Is there anything I can do, anyone I can speak with about this? This is a cosmetic issue only. Inspection went off without a hitch. The builder has built all the houses in the community and in other communities. It is their general policy not to change anything in a spec house. Since the house isn't custom built, everything was already decided and most of it was already built before we made an offer. I should have asked what the color was but didn't have a strong opinion about it and figured it would be tastefully done like the rest of the neighborhood. Also, there's a chance they will have to paint it after closing date because of the weather. The bank will escrow the painting money until they finish. Is there anything I can do now or after closing (if it hasn't been painted) to get them to change colors? It's an otherwise great house for our family and we are excited about moving into it. [link] [comments]  |
| [MD] 05/09/2019 closing, when/if to rate lock Posted: 28 Feb 2019 07:22 PM PST I'm in contract on a home in MD pending inspection (95% complete, pending radon and termite) and appraisal. I was pre-approved by a lender in early February with a rate estimate of 4.275%. This is my second home purchase. My first home the rate was locked at pre-approval. I (perhaps naively) assumed it would be the same deal this time but it is not which is fine but I'm now looking for some guidance as to when or if to lock in a rate. My loan officer doesn't seem keen on locking in a rate now because I'll have to pay more, "rates are dropping" and he doesn't feel comfortable locking it in for longer than 60 days. He suggested I wait until within 45 days. Any advice? Is there a good way to even track daily rates and know when to lock? I'd like to know sooner than later the finances for the loan but I also don't want to commit to a rate that could've been lower or pay extra unnecessarily to lock in at this rate? I know none of this can really be predicted but is there a general sense of what's best practice? [link] [comments]  |
| Posted: 28 Feb 2019 07:11 PM PST Ok y'all, I'm house shopping in Minneapolis and I've been through hell and back in the past 3 months, I have got through 2 realtors and 5 offers that have been turned down. It's became clear that my offers are being turned down because I'm FHA and I am asking for 3% on closing but ALWAYS offering $10k+ over selling. Conventional is not an option right now because the PMI becomes extremely high due to my credit, which is short by 6 points. Do you recommend I wait this out until I qualify for conventional or keep on searching? [link] [comments]  |
| Are drainage tiles a red flag? Posted: 28 Feb 2019 06:40 PM PST I'm about to buy my first townhouse in Illinois. I saw that there was a new sump pump and drainage tiles alongside the basement walls. Should I be concerned? [link] [comments]  |
| Rent my house while I live on my boat at my dock? Posted: 28 Feb 2019 05:58 PM PST I have a house with a dock. At the dock is a sailboat. I want to live on the sailboat at my private dock and Airbnb the house. Is this legal? Who should I ask or where should I look to find out? State is Florida. City is Apollo Beach. [link] [comments]  |
| Appraisal that's factually inaccurate? Posted: 28 Feb 2019 07:12 AM PST So I got an appraisal on a property I'm purchasing back and it is factually inaccurate. For example, it has a sump pump - appraisal says it doesn't. It has a fence - appraisal says it doesn't. It comes with a fridge - appraisal says it doesn't. It doesn't have a garbage disposal - appraisal says it does. The list goes on. Then in the comparable section all of the properties are listed as C4, but two of them have a $15,000 adjustment for this even though they are listed as the same. It's generally easy to follow along why they made changes, but this is a huge adjustment with no condition difference noted. There are adjustments for the lack of fence even though it has one, adjustments for lack of patio even though it has one. Part of the basement is listed as finished on the assessor and the listing, but the appraisal says it is totally unfinished. The MLS number used links to a different property. It's a little disconcerting that an appraisal can have so many inaccuracies in it. Is this normal?? The appraisal came in $3500 above what we're paying, but I think the appraisal is low, especially because it neglects to count a lot of features about the property. I'm only going to bring this up after closing since we're already cleared the close and I don't want problems. [link] [comments]  |
| Unable to view house because of current tenants Posted: 28 Feb 2019 05:16 PM PST Hi all. This evening me and my husband drove an hour to see a home that was scheduled for a viewing between the hours of 6-7:30PM. We arrived at 7 PM. Our realtor gave us a late heads up because she was unsure if she could make it because she was experiencing car troubles but we all made it within the time frame. When we pulled up to the address, our realtor was standing outside of the property trying to contact the renters who currently reside in the property. She had already rung the doorbell (which was answered) which is one of those Vivint (audio/video ones) and said "hi, i'm here to show this house. I had an appointment to show from 6-7:30". The lady on the other end never replied and kind of went about her business. Continuing to watch TV and such. Lights went off and we kind of just stood there waiting. The day before (Wednesday) we tried to see the house around 4:30PM but the excuse was that she has locked the screen door from inside. No one would be able to get into the lock box and unlock the door as it was behind the screen/security door. Is it wrong for me to think that this is all intentional? If so, how do we proceed? I have 3 small children that I have to arrange for a nanny while we drive almost an hour and cannot continue to make such trips BUT i am really loving this house. [link] [comments]  |
| New to investing. I goot some questions Posted: 28 Feb 2019 04:34 PM PST Hey there all. Where can i go about learning how to invest in real estate from the complete beginning. I have the willingness to learn but i just find it so hard knowing what site to be on what videos to watch and so forth. If someone can point out some great books, videos or other things thatll be free that would help! [link] [comments]  |
| Will getting a second appraisal hurt us more than help us? Posted: 28 Feb 2019 12:21 PM PST Hello! Long story short - the mortgage lender we went with may have taken advantage of our inexperience. He refused to give us our final interest rate until the appraisal was completed ( I say may have taken advantage because I don't know if this is a common practice). However, he did a maximum lock rate (so the rate can't be higher than..) at 4.6% We had the appraisal done and it came in right at sale price. However, my fiance found a much lower rate (around 4.3%) through his bank and the mortgage lender is now saying he can't match that. If we decide to go with my fiance's bank, they will have to do a second appraisal. My questions are:
Any other advice about navigating this process is also much appreciated :) [link] [comments]  |
| Appraisal/Value/Real Estate Agent ??? Posted: 28 Feb 2019 03:41 PM PST Gonna start off by saying I am no expert at knowing things about real estate, but my first time home buying experience has been pretty frustrating. I found a house that I really liked and wanted to put an offer in with a real estate (family friend real estate-first mistake I made but whatevs.) The house was listed for 115,000 and I was fully prepared to offer that much. We go back to her office and she does a comp analysis and it averages around 95k. She strongly suggests going in at 95k, I'm apprehensive because that is 20k under their price range—I'm not trying to low ball them, I was ready to pay full price. So we go in at 95, and they counter at 112. I was READY TO TAKE IT and she's strongly strongly suggesting that I don't and counter with 105k. Whatever, we do it and they don't want to come down that much. I finally speak up and express that I will pay 112, and she is telling me there is no way that the house will appraise for that much and goes on and on about how the real estate agent listing the property is out of her mind. I'm clearly frustrated with the situation, and am now stuck with using her for the next 6 months because of paperwork signed during the first offer we placed. Is this true? I know there are factors that come along with the appraisal, but isn't this how property values increase? People are willing to pay more for them? Pleaseeeeee help [link] [comments]  |
| Effect of rent control on home prices? Posted: 28 Feb 2019 03:12 PM PST Today, Oregon signed its rent control bill into law. As many empirical studies show, over the long term, rent control typically results in housing shortages and higher rents. As someone thinking of moving to Portland (for family) and perhaps buying an owner-occupied duplex/triplex (which would have relaxed rules, compared to a typical investment property), my intuition tells me we should be seeing a market in which many non-occupant landlords will be seeking to sell their investment property because they can no longer see a future operating it at profit. My gut says this should result in a better buying market for us. Trying to consider if this is a good time to buy. I'm well aware this is not necessarily the best move from an investment point of view (we'd probably buy future units across the border in Washington), but we're planning on occupying this building for the rest of our lives, and would slowly convert units to extra rooms in our home as our family expands. The rental income would mostly be to subsidize our mortgage. [link] [comments]  |
| For sale by owners with buyers already decided Posted: 28 Feb 2019 08:42 AM PST My dad passed away about a month ago and left us with 3 for sale by owners already contracted for a couple of years. There is also 1 rental home being rented and they have in their contract to be able to FSBO when they are ready. There is one more currently vacant home that someone is interested in FSBO. My dad was working with someone on these 2 latter properties and apparently there are contracts ready but my brother and I are not sure how to proceed. He wants to go ahead and let the contracts be signed and turned to FSBO, but I feel we need to meet with a lawyer as the estates, while we are the heirs, have not been handed over to us completely (deeds, titles, ect) What should we do to move forward?I don't mind for sale by owner. My dad owned all these properties with no mortgages so we'd just be getting all the payments which eventually we will figure out how to split all the estates. I just want to make sure we have a leg to stand on here and don't get screwed over somehow. [link] [comments]  |
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