Prentiss Yates
, FL Active 2 years, 5 months agoForum Replies Created
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Posts
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Lillia
Property taxes and expenses are paid by the doc A simple way to look at it is this suppose all expenses are 6,000 and all rents collected are 6,000. The doc pays you as manager 6,000. You handle everything, all payments etc and invoice the doc. He would get a 500 invoice every month. He made 0 but has a write off of 12,000. You do not have rental income you have management fees, There is a basis in the house and you will own half as soon as you give the doc 1/2 of the purchase price. On sale long term capital gains would apply BUT I am a long term holder I don’t care about taxes because I have no idea what they will be. Also there are ways to postpone taxes
Major issue is how far away is the property. I would then use a contact to get a curb appeal appraisal. or id=f near I would go my self. Zillow is the wrong place to look for value. If far away is a flip type or 1031 deal. if near then maybe a rental. Depending on the exit strategy a 20 year upgrade could be between $30,000 to 60,000. So here are my offers:
1.
Immediately Option to purchase with the financial terms to be determined 1 week after inspection, Inspection to take place within one week of signing option.
2. After Infection depending on the numbers
a. Full price offer of $145,00 at $400 per month until paid in full ( I am figuring rent of $1100 per month)
b. 60,000 all cash
c. Lease property with auto renewal for $500 per month for 5 years
They kety is what is she going to do with the money? You need to know because she very well might like a long term income streamHere is how it works: I find the house and manage it. Then doc buys the house for cash, It is placed in a Land Trust doc having 100% Ben Interest. I have the option of buying 1/2 for 1/2 of the purchase price. This is set up for 10 years. The doctor gets all write offs, , maintenance, depreciation, taxes, insurance etc. I get a management fee (the rent) Doc DOES NOT income he wants deductions, Let’s look at a 150k house, rent $1500
Depreciation = 5048
Taxes = 2000
Insurance = 750
Maintenance = 600
Management Fee= 18000
Total for doc= (26,398) at 30% (tax bracket) =7919.40 tax deduction which is about 5% ROI without appreciationWhat do I get? All rents $18,000 Which is used to buy into option, I do not have to pay 75k all at once
What happens if market drops. No Problem we are long term holders
Here is a killer for the small business
http://www.investingblog.org/archives/637/big-changes-to-irs-form-1099-in-2011/
Does your business buy more than $600 worth from any other business? A bookeeping nightmare.
What does a 1099 cover now? Later who knows?
http://www.irs.gov/efile/article/0,,id=98114,00.html
