Investors of 2 to 4 unit apartment buildings can finance them as commercial with only 25% down payment, 35 year amortization, with partial release. No more 40% down or using residential loans that are unfavorable to investors.
Video Rating: 3 / 5
Question by Diane A: Tax filing – Odd situation?
I own a home but rent it out – for less then the mortgage I pay. I rent an apartment out of state. For the home, I do employ a management company to collect the rent and to deal w/ the tennants.
Do I have to claim the home as an “investment property” on my taxes if they haven’t lived in there for more than 4 months of 2007? What would get the most return – claiming the investment or not? I only own this home – would rather sell it but the market is crap.
Best answer:
Answer by v b
You may want to hire a professional to do your taxes.
When you rent the property, is the rent the going rate? Just because it doesn’t cover the mortgage doesn’t mean that you aren’t doing this for profit.
If you are renting to get a profit, you use a schedule E. You report the rent and get to take the management fees as an expense, other expenses such as interest and depreciation. While you won’t get to take a loss on your taxes, the loss will be deferred until you sell.
Where to report. Report your not-for-profit rental income on Form 1040 or Form 1040NR, line 21. You can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses on the appropriate lines of Schedule A (Form 1040) if you itemize your deductions.
Claim your other rental expenses, subject to the rules explained in chapter 1 of Publication 535, as miscellaneous itemized deductions on line 23 of Schedule A (Form 1040). You can deduct these expenses only if they, together with certain other miscellaneous itemized deductions, total more than 2% of your adjusted gross income.
Give your answer to this question below!
Gross profit of 000. A Wholsale deal located in Maryland. It is worth 0000 and the asking price is only 3000.
Video Rating: 5 / 5
Question by moham: how can a reputable source for a short sale be found ?
I’m facing foreclosure and was told that I should seek someone try and do a short sale. the last time I did this I was approached by someone after listing on Craigs list, only to find out that they prolonged the process for about 2 and a half months. complaining that the mortgage co. was not responding to him. ultimately the property went into foreclosure anyway. “an investment property. ”
since I lost half of my income I’m not able to keep up the payments on my primary residence, and desperately need to downsize. any advice would be greately appreciated. thank you………
Best answer:
Answer by DJ B
The very first thing for you to do is call your lender and ask for their help. Then second call regardless of what the lender says, is 888-995-HELP. This is a counseling service to advise you that HUD set up. It’s free. It is invaluable to you now. Don’t wait call them now.
A short sale has to be approved by the lender, and they aren’t quick at making decisions.
If you like I can make a referral for you and get an agent that knows your area , that is your decision. But make those two calls today. Please don’t wait. If I can help further, email me alterfemego@yahoo.com
Know better? Leave your own answer in the comments!
www.BuyPropertyMalaysia.com. Register investment property Talk in Malaysia at the link above.
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www.BridgeCapitalLending.com Use an hp 10B to calculate amortizing mortgage payments
Property Investment Malaysia by Milan Doshi – www.PropertyInvestmentExpert.com
www.realestateguide2success.com…This real estate investment property checklist provides a quick overview of the major areas that need to be considered when purchasing a rental property. You can find blog posts, podcasts, articles and other great sources of real estate investing information at www.realestateguide2success.com.
Video Rating: 5 / 5
www.DCWholesaleDeals.com or 240-206-3830. This is a special 4th of July Fireworks deal becuase the profit potential is EXPLOSIVE!!! You can get this large cash flowing 4-5 bedroom, 2 bathroom house for less than 0000. That’s almost too good to believe for Washington, DC Area Investment Property. It get’s no better. Check out http or 240-206-3830 if you want the deal. Get it before it’s gone!
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Good tenants are everywhere. Conversely, idiots with nightmare stories about “some friend of a friend of a friend” who got their house trashed by a bad tenant are everywhere too. Is it possible for you to get stuck with the tenant from hell? Sure, if you do not follow a few simple rules. You can get a great tenant every time when you follow Erick’s system for screening tenants. Call 703-590-2252.
Question by ProfessionalMom: Rental Property (Arizona), used to live in for 12+ months – Short Sale Reprocussions?
Property in Arizona that I have owned since July of 2006, purchased and occupied for 12 months before moving to the East Coast in July of 2007. I have never been late or missed a payment on my mortgage. I now own a home on the East Coast where I live and have been renting the Arizona home for 3 years. I am $ 160K upside down in the Arizona Home and come out of pocket $ 1000+ a month to finish the mortgage, hoa’s, taxes, etc. I currently have the property listed with an agent in an attempt to do a short-sale, but with so many homes on the market it is not getting any offers. My question is, if I am able to complete a short sale will I be responsible for paying taxes on the amount the mortgage company cancels, will I be liable to have the mortgage company come after me for the difference owed since this is a rental property. Please note that the loan is still the original loan from when we lived there, so it’s not a “second property” or a “investment property” loan.
To “the tax lady” –
To make sure I am on the same page and understanding you correctly.
I Purchased for $ 270,000 07/2006.
I lived in it for 12 months and in 07/2007 converted it to a rental and the FMV at that time was $ 235,000 (this would be a $ 35K depreciation that doesn’t count).
From 07/2007 to today my FMV has dropped to approx. $ 100,000 for a total depreciation while a rental of $ 135K.
If I am understanding you correctly and I short-sale for $ 100K, my mortgage company will be taking a loss of $ 170,000 total and if I minus my $ 135K depreciation while a rental, this would leave me with $ 35,000. Are you saying that I would be reporting $ 35,000 as income on my taxes? I think this is what you are trying to say. Look forward to your feedback and thank you.
P.S. Do you know if the mortgage company can come after me for the difference or do I qualify under the Arizona Anti-Deficency Act?
Best answer:
Answer by the tax lady
Hire a competent tax professional to run a mock tax return for you.
Can you document the FMV of the house when you converted it to a rental? Any losses that occurred while it was your personal residence are NOT deductible.
When you short sell (or foreclose), you will have a sale to be reported on form 4797. You can claim any losses that occurred after it was rental.
The 1099-C for cancelled debt will be income on the schedule E and will cancel out the loss on the 4797 (for all but the depreciation you have previously claimed).
While you can use form 982, it can only be used if you are insolvent or in bankruptcy. This would save you the gain from the depreciation (the first thing the 982 does is absorb the NOL).
What do you think? Answer below!
What makes investing in property really a good investment option? When there are other investment avenues open, why is it that investment propertynever fades out? Even while the other avenues are offering better rates of return, people still go in for investing in the real estate. The reasons are abound, from the purely financial consideration based on profitability to the more emotional and psychological reasons. Let us explore some of the reasons which make investment property hot.
Absolute returns matter: Investing a big sum in the real estate sector over a period of time can actually make you earn big after some period of time. While some other options may be offering you better returns, there might be requirement of lower sums which might in fact make you diversify more rather than putting all money in one option to get maximum returns. In property, you have to invest big.
A thing which you can own and use: Commodities or metals, most of the times, can not be used. These can only be used by selling these off or mortgaging them to convert these to money which is then used for doing anything else. Property can be used as such either for living or for work anytime that you like.
A more secure investment: Can a thief take away your property? He can of course take away the investments done on papers and deprive you of possessions but this is not possible to be done with property unless there is intentional white collar crime done against you with malicious means.
Earn income in more than one way: With investment property, you can take the rental income by leasing out your unit or you can even sell off the same during the peak rate season to get the maximum profit. Rental income can be substantial in some areas. You can retain the title to the property even while earning income from it.
While it is true that there are some distinctive advantages of it, there are some peculiarities of this investment as well. You need big sum to invest which might not be possible for everyone. This investment needs to be locked in for years if it is some under-construction project. Also, the market demand may not be all that good for selling the property or renting it at the desired rates. You might have to wait for the opportune time in future or compromise with the rates that you are seeking.
Despite these peculiarities, the investment property is still desirable since, historically, the property prices have not crashed often. These are far more stable or are always witnessing the upward trend. Downward curve happens very rarely. In a buoyant economy, the need for more residential, commercial, industrial and other spaces grows considerably and the high demand for limited spaces pushed up the prices. You can design a portfolio of investment in different properties depending on their special features and your objectives.
With investment property, you can take the rental income by leasing out your unit or you can even sell off the same during the peak rate season to get the maximum profit
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