91 votes

As a landlord, should I refuse a rental reference for a tenant who damaged the unit? (Fixing the damage was covered by the deposit.)

If the damage done is covered by the deposit, then I wouldn't give the tenant a bad reference, that's the point of the deposit. Even if it wasn't covered by the deposit, if they willingly covered the ...
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  • 63.9k
35 votes

As a landlord, should I refuse a rental reference for a tenant who damaged the unit? (Fixing the damage was covered by the deposit.)

Generally when providing reference it would be best to refrain from matters of opinion. Did the tenant pay as agreed and on time and covered all the damage caused? That's all you can answer without ...
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  • 129k
22 votes

Can I put my rental in a trust and have the trust sell it?

If the trust is a revocable grantor trust (i.e.: the grantor is the trustee and the beneficiary and can change the trust any time), then it is invisible to the IRS and is indistinguishable from the ...
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  • 129k
21 votes

As a landlord, should I refuse a rental reference for a tenant who damaged the unit? (Fixing the damage was covered by the deposit.)

You must amortize damage to the carpet What is the normal interval of replacement for that quality of carpet, given normal wear and tear for normal tenants? How old was the carpet when the tenant ...
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18 votes

As a landlord, should I refuse a rental reference for a tenant who damaged the unit? (Fixing the damage was covered by the deposit.)

"I had to pay to have the carpet entirely replaced" is not quite accurate. You charged your tenant (by withholding money from her deposit) to have the carpet replaced. The difference is that ...
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  • 791
14 votes

Can I put my rental in a trust and have the trust sell it?

What you are missing: Trusts have to pay income tax too, and the rates are higher than personal income tax. There is also no standard deductible for them.
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  • 37k
11 votes

Why not pay down payments on multiple houses and hand them to rental management companies?

The same thing that keeps everyone from investing in any "on average" profitable space - risk and opportunity cost. Renting a house isn't always profitable, for a wide variety of reasons. ...
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10 votes

Sibling Disagreement on Property for Mother

She would like for my mother to pay her $500/month (as a tenant) That is the key. has asked me to contribute $250/month since she is the one "taking the risk" of owning the property What ...
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  • 48.7k
8 votes

Sibling Disagreement on Property for Mother

The best way to look at it: Imagine it wasn't your sister buying the house, but a total stranger. So some stranger takes $80k of their own money and an $88k mortgage to buy a house, then they rent it ...
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  • 20.9k
7 votes
Accepted

Can a tenant build equity in property they are renting?

Normally a tenant doesn't build equity. Normally when a tenant makes modifications to the rental property, the modifications if they can't be removed, are now owned by the landlord. It is possible to ...
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6 votes

How much will the bank lend me?

The order here is backwards. You make an offer, have it accepted by the seller - and then you get the lender to value the property. If their valuation is greater than or equal to your offer price, ...
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6 votes

As a landlord, should I refuse a rental reference for a tenant who damaged the unit? (Fixing the damage was covered by the deposit.)

I'm going to disagree with the previous answers and suggest you not treat the damage as water under the bridge, as it can signify values problems that may lead to damage not covered by the deposit in ...
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  • 169
5 votes

How does let-to-rent tax work

Here is a page that gives an overview on letting homes in the UK. Your rental income counts as income and you have to pay taxes on it, and possibly National Insurance. However you can deduct some of ...
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  • 30.4k
5 votes

Is it financially smart for my girlfriend and I to get our own FHA loans for separate properties before marrying?

I want to invest in real estate for the purpose of renting or using as an Airbnb to help establish future financial freedom. I'm trying to understand if it would be a wise financial decision if I were ...
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5 votes
Accepted

Is it financially smart for my girlfriend and I to get our own FHA loans for separate properties before marrying?

"Wise" is very subjective. Some on this site (me included) would not call going into debt for $250K ($500k between the two of you) to buy an investment property "wise". Especially ...
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  • 114k
4 votes
Accepted

Can I list an occupied property for rent prior to lease renewal date?

A real estate agent will not accept such a listing. In many cases, the existing tenant has no obligation to allow a showing while they still occupy the rental. Once they give notice, you can list it, ...
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3 votes
Accepted

When do I report managed rental income?

Your choice whether you operate on a cash basis or accrual basis. Default is cash basis. IRS Tax topic 414 Most individuals operate on a cash basis, which means they count their rental income as ...
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  • 8,241
3 votes

I've already filed my personal income taxes but didn't file my schedule E along with it

Am I screwed? You could be if you get audited before you have a chance to correct this. Especially if there's a lot of income involved (>$5K). You may also be missing out on deductions and ...
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  • 129k
3 votes

Is it financially smart for my girlfriend and I to get our own FHA loans for separate properties before marrying?

Yes, you can use FHA loan for an investment property, as long as you live there as your primary residence. This is called duplex investing or house-hacking: https://www.millionacres.com/real-estate-...
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3 votes

Is the way I'm calculating depreciation on my rental property correct?

If do $63,500 * 0.0348484848 = $2,178.03 - Is $2,178.03 the correct amount I can write off in terms of depreciation on my rental property? No, it looks like you've applied the half month adjustment ...
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  • 63.9k
3 votes

How much will the bank lend me?

They'll lend you 75% of whatever their valuation is, usually based on a fairly perfunctory survey. There's no real concept of an "official valuation" prior to you trying to get a mortgage ...
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3 votes

As a landlord, should I refuse a rental reference for a tenant who damaged the unit? (Fixing the damage was covered by the deposit.)

You can always give an honest reference. "I confirm the tenant Madam Abc rented my property at Abc Street between x.y.zz and a.b.cc. She was a responsible person, she always paid rent on time and ...
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2 votes

Sibling Disagreement on Property for Mother

The bottom line is there is no "fair" in this case. You are not obligated to contribute to your mother's living expenses or is your sister. However, either one of you may choose to do so ...
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  • 74.9k
2 votes

Sibling Disagreement on Property for Mother

Your sister is taking on more risk so it makes sense that she get a more substantial share of the gain. There are a lot of other questions to ask. Who is paying for repairs/insurance/new appliances/...
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  • 63.9k
2 votes

Can I list an occupied property for rent prior to lease renewal date?

Can I list the property online to assess interest in a raised rent value prior to hearing from my tenants? Likely yes, but you may want to include a "Do not visit / do not disturb tenants" ...
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2 votes

Getting a HELOC to buy an investment property with bad credit but fully paid off house

I am not in your jurisdiction (Canada rather than PA, US), but I have experience in risk management. With all due respect and best wishes for you as an individual to get ahead, I helped financial ...
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  • 181
2 votes

Can a tenant build equity in property they are renting?

No, there is no entitlement to equity or a percentage of ownership in the property unless explicitly agreed to between landlord and tenant. That would be an extremely odd ask from a tenant. A tenant ...
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  • 431
2 votes

If it turns out that using heat is causing a large usage of electricity, does the landlord pay at least part of my electric bill?

You need to clarify a few things: "heat is included" community is run on gas heat a Heat Pump listed in the breaker box If you aren't sure if there is a heat pump or not, that also means ...
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2 votes

If it turns out that using heat is causing a large usage of electricity, does the landlord pay at least part of my electric bill?

"Heat included" most likely means that the owner pays the natural gas bill, which powers (presumably) the hot water heater and possibly other appliances. It's less likely that the owner (or ...
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  • 114k
2 votes
Accepted

Which method to amortize my single family rental and what else do I need to know?

Rental property depreciation rules differ depending on the property location. For a US-located residential property, you'd be using a MACRS 27.5 years depreciation schedule. However, in your case, the ...
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  • 129k

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