Comments for i bought a duplex (!)

Comment on Showing the apartment that you’re living in… by Kalli

Kalli — Thu, 01 Jul 2010 01:38:07 +0000

I am so glad to have found your blog! I’m a 24 year old single girl looking to take advantage of the buyers market, and I’m looking at buying a duplex. I’d love to ask you a few questions, if you can email me. Right away, I’m curious if you think it’s a horrible decision if I don’t have lots of cash saved up. The duplex was build in 1978 and has had some updates, but it’s sort of scary thinking lot’s could go wrong as soon as it’s mine. I’ll wait for your email! I really appreciate it!

Thanks!

Kalli

Comment on Pros and Cons of Owner-Occupied Duplex Living by Chris

Chris — Mon, 28 Jun 2010 19:53:57 +0000

I bought a 2 floor condo and split the insurance with the 1st floor owner. I play the insurance and send him a copy of the bill so he can write me a check. He already owes me last years insurance and has not paid me for this year. He is never at his place and when he is there I have knocked on the door, called him and left letters. Even certified letters that he never got. Now, I have a lawyer involved but I feel like I will never see the insurance money and cannot afford to keep paying his half. What can I really do about this?

Comment on It’s hard to find a good handyman by David

David — Mon, 31 May 2010 07:24:51 +0000

You can use Handyman directory to find some handymen.

Comment on Cashflow and the duplex next door by Christopher

Christopher — Thu, 06 May 2010 08:11:51 +0000

While the idea may seem tempting, after it is right next door to your property, I figured I would throw this question out to you. What about venturing out into other kinds of investments? You seem to enjoy being a landlady, but has it become somewhat of a hobby for you? Its always smart to diversify your investments — take a look at the amount of people who bought multiple properties during the boom and are now paying the price. Not saying it’s a bad idea, but I think Andrew brought up some good points to consider as well.

Wow, I just noticed this post is about 3 years old… so tell us, what did you decide??

Comment on Showing the apartment that you’re living in… by Christopher

Christopher — Tue, 04 May 2010 17:02:54 +0000

Hey, thanks for making this blog and describing your experience! I’m doing some research since I have a contract to buy a duplex as my first home, but know nothing about being a landlord. Seems like I can do most of my shopping here…

I think you were right – I’m sure the the tenants probably noticed the umbilical cord between you and the apartment. Maybe this is why more Realtors show the property instead of homeowners? Personally, I would rather have the owner show the property so I could quiz them…

Question, what does your boyfriend think about you owning a duplex? Do you think you’ll own it long term?

Comment on Tips for buying a duplex by las vegas buy house

las vegas buy house — Fri, 16 Apr 2010 07:03:48 +0000

One of the easiest and least expensive ways to become a landlord is to buy a duplex, live in one half of it and rent out the other.

Comment on Changes in FCRA, TransUnion policies create screening problems for small landlords (like me) by Tenant Screening Background Check

Tenant Screening Background Check — Fri, 16 Apr 2010 04:56:38 +0000

I believe that I can help you. You are certainly not the only one experiencing these challenges as the industry continues to tighten the requirements for gaining information. We are private investigators and have such good data, that many of our clients find it unnecessary to order “credit reports”. I think you will be amazed at the kind of data that we provide in our tenant screening reports. For more information and sample reports, go to http://tenantscreeningbackgroundcheck.com I am confident that once you start obtaining your background check reports from us, you won’t feel the need to use anyone else.

Alexis Wellington

Comment on Tips for buying a duplex by new houses for sale

new houses for sale — Mon, 22 Mar 2010 10:13:59 +0000

Thanks for such a great article to share with.I enjoyed reading it!

Comment on Oh, the fraudulent tenant from overseas scam… by Megan

Megan — Wed, 03 Mar 2010 04:34:29 +0000

I am a property manager and we are required to post on craigslist. I have gotten a few of those kinds of responses from ppl overseas. They were “engineers” but misspelled everything and kept saying “Let God be with u” and ll that kinda stuff and kept wanting to send a few months up front to secure the apartment. I kept telling him we don’t need tht much money up front but he kept insisting… Finally I kept emailing him back- I could tell it was fishy. Next time ill play around with them and waste their time! Hahahaha!

Comment on The owner-occupied duplex tax shelter by Peter

Peter — Mon, 15 Feb 2010 14:44:15 +0000

Thanks for a great post. The discussion of owner-occupied multifamily tax strategy is hard to come by. I have tried to develop my own plan by scouring the IRS website (extremely time-consuming). I think that two issues should probably be clarified here:

(1) “And yes, you do want to be able to show a loss — this offsets your income for the year.”

On the Schedule E, the losses sustained from depreciation, mortgage interest, and other rental costs outlined in the post offset RENTAL income. Unlike the mortgage tax deduction that you get for your personal unit, this does not directly offset annual income generated outside of the property itself (from your job). If you treat them in the same way, you are certainly “doing it wrong.”

With that said, if your annual rental income turns out to be a loss, then this can offset other income just like any other investment loss. However, there is an annual cap on these losses. If, for example, you have a very expensive year due to major repairs or other costs, I believe that losses above that cap can roll over to offset the next year’s income. So keep track of them.

(2) “I’m not selling my duplex any time soon, but yes, it is my understanding that if you live in a duplex before selling, you get the same tax benefit on the profits that you would if it was a single-family home.”

From what I have read, you will be entitled to the capital gains exemption ($250,000 if single or filing separately, $500,000 if married) for your PERSONAL unit. That is, the unit that you have resided in for at least 2 of that past 5 years. Capital gains associated with the other unit will be fully taxed. So any appreciation in the value of your rental unit (50% of total gains) will be taxed upon resale, minus the cost of capital improvements that you make (ie new roof, new windows, new kitchen, etc). So KEEP TRACK of the cost of capital improvements made to the rental unit (or 1/2 of the improvements made to the entire property).

I have a call into the IRS to make positively sure that this is the case — I am currently about 85% sure.