"The Pen:" Live NLHE Chat Thread
It's been about 9.5 years and 350K posts of epicness, but "It Lives, It Lives" can live no more. The OG LLSNL Chat Thre
In that case, you should put a helmet on the helmet.
So to speak.
I was called upon to go to Yuma Arizona and argue a case about stolen hay. Yes, in Yuma county they're stealing the hay.
And eating the dogs?
In Yuma they're Stealing the Hay - Eating the Dogs - Nabbing the Goats.
Happy Mothers' Day, degens!
Brag: Shot a 71 golfing yesterday.
Beat: It was on a par 3.
Variance: First time I've swung a club since my nerve injury, honestly just happy I'm able to get out. Looking forward to butchering a real course later this week.
GcluelessperspectivenoobG
So we found a house for sale that is a cosmetic fixer, much like the one in Indy was, but in the perfect location. The rub, we wouldn't be moving there for for two years. Thinking about buying it anyway, doing the very basic stuff (floors and walls) and renting it out until I retire from the AF. Talk me out of it?
Garick,
It would be better to invest half of the money you'd put towards the house purchase in low risk mutual funds and then take the other half over to your friend Asadulah who works in securities.
So we found a house for sale that is a cosmetic fixer, much like the one in Indy was, but in the perfect location. The rub, we wouldn't be moving there for for two years. Thinking about buying it anyway, doing the very basic stuff (floors and walls) and renting it out until I retire from the AF. Talk me out of it?
can you set it up initially as an investment property and then tax offset any expenditure on improvements/any losses on loan vs rental income?
we have a glorious tax break called negative gearing where you can offset the losses you make on rent v mortgage payments against your income tax. SO eg if loan repayments are 40k and rent is 30k per year you can deduct that 10k from your income tax. Which...given our top rate is 46.5% = a decent saving
In conjunction with me being able to offset 25% of my rent and bills in the house I currently rent to live in with my kids, it means it's extremely tax efficient for me to rent to live but buy to let for a few years at least.
can you set it up initially as an investment property and then tax offset any expenditure on improvements/any losses on loan vs rental income? we have a glorious tax break called negative gearing where you can offset the losses you make on rent v mortgage payments against your income tax. SO eg if loan repayments are 40k and rent is 30k per year you can deduct that 10k from y
So, borrow lots of money to save on taxes.
Interesting tax structure. We do have something a bit similar, but it doesn't apply directly to the tax, just as an adjustment to income. And even that's not direct. So if (for simple math's sake) I made 100K/yr and lost 10k/yr on the house, I would make 90k/yr taxable, right? Not so fast. There are caps on how much business loss you can deduct from your income, that vary by your income level. Also, they don't figure it by straight mortgage minus rent. Instead it is against the price of the investment vs income minus depreciation.
It's complicated, but there are some tax advantages. Still, it's better yet to make an actual profit on your rental.
Have you been a landlord? I did it for a few years, hated it. Glad I sold.
I'm assuming this is nowhere near to where you live today. Paying someone to do "cosmetic" repair can be pricy. Not to mention trying to supervise the work from afar.
As for renters, you want to make sure you can evict them easily if they don't pay. More "liberal" states have lots of restrictions and it could more than year to get them out.
If it's far away, I'd say a huge factor in your decision is how good a management company you can get in that area. If it's sitting open because they're not good at getting renters, or is getting torn up because they get renters who don't take care of your property, that's no good.
Also maybe think about how likely it is that you can find something similar in the "perfect area" closer to your retirement date. It can't be the only house that qualifies there, can it?
I'm assuming this is nowhere near to where you live today. Paying someone to do "cosmetic" repair can be pricy. Not to mention trying to supervise the work from afar.
As for renters, you want to make sure you can evict them easily if they don't pay. More "liberal" states have lots of restrictions and it could more than year to get them out.
I have had negative experiences in both of these areas. When we moved from VA to AZ our realtor in AZ recommended a guy to renovate two bathrooms and make other seemingly minor repairs while we were still in VA - we were appalled by the quality of work done when we finally got out here.
When we moved from Boston to DC we put our Boston house on the market but it was a slow market at the time. So we rented it out through a management company but ended up with a problem renter - chronic slow pay, some months no pay and it took nearly a year to get them out.
All of these concerns are very real, though my Stepfather is a retired carpenter and General Contractor in the area. Not close enough to GC it himself, but at least close enough to know who is reliable.
Also maybe think about how likely it is that you can find something similar in the "perfect area" closer to your retirement date. It can't be the only house that qualifies there, can it?
This is the only reason we're even considering it. I've been keeping an eye on the market for over a year now, and this is the first one that's come up with a significant opportunity for sweat equity. There have been several where someone else has already done the updating, but they are approx twice as expensive.
Gyeswehaveannoyinglyspecificcriteriawhydoyouask?G
I’ve been one for 23 years. Key is to pay 10% ish to a management company and then not worry about things on a daily and weekly basis.
Property investment success should be about the capital appreciation not eeking out a small monthly profit.
You should have specific criteria, Garick. It's great that you know exactly what you want, and have been doing your homework to know if that is realistic.
GL, let us know what the outcome is.
gman, mindflayer here manages a lot of properties all over the usa and canada, he's probably a good resource to dm or post on his blog https://forumserver.twoplustwo.com/30/bu...
It is now the heartless landlords pen.
If it ticks all the boxes and you're worried about not finding anything remotely as good in two years, would it be crazy to just buy it now? Could you even let it sit for two years if you didn't want to deal with renters, and then do your fixes when you retire with time on your hands? Although I have zero clue what the implications of letting a house sit for two years is (i.e. do you need your stepfather to check in at it once a month, mow the lawn, chase away the squatters, etc.).
I have a hockey buddy who recently bought his future retirement house but he's still a few years away from retiring. But he's only 3.5 hours away, so he zips up every other weekend to work on it, etc.
GcluelessretirementhousenoobG
Surgeries are over. Phew.
My wife had "cages" installed between two lower vertebrae on Tuesday and then today, they went back in and "tied them in". Think screen door hinge (only much smaller) in a circle with the spinal cord running through. Interesting thing about the first day: a neurologist hook her up with a series of electrodes all over her head that monitored the spinal cord. Any time the surgeon "got close" to the cord/nerves, a light would go off. In reality the light never went off but the tech was there to protect the cord. Pretty cool.
Over the past three years she developed (from zero to ugh) a sclerosis that was pinching nerves and made her life pretty miserable.
Two to three weeks ahead of very limited mobility..... with a King serving as man-servant. 3 months out and about but still cautious. 6 months "good as new" according to surgeon, though we have heard that one year is likely. Surgeon did tell us to buy our 2025-2026 ski passes so HE has confidence.
She's in good spirits and can't wait to begin the second part of this journey.
Congrats to Queen Spew!
House dilemma solved. Someone else already bought it.
