There are many advantages to investing in real estate. One of the major ways to take advantage of your investments it to utilize the 1031 tax free exchange. I had know about this tax advantage well before I started investing in real estate, however I did not know about many of the details until I ran across an article by Jeanette Joy Fisher, which explained some of the details around timelines that you must follow as well as the types of properties that can be involved. It also details one cool loophole that allows you to purchase your primary residence with this tax exchange.
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The Rental Property Manager's Toolbox
Discover how to find the perfect rental property. This essential guide will help current landlords, simplify and streamline their business, and investors just getting started, will learn must have tips and tricks for pruchasing rental property. This toolbox can literally save you thousands of dollars! Ready to boost you income? Get your copy now! |
After evicting my first tenants, I spent many hours in the apartment cleaning, painting, and repairing. But now that I can look back on it, there is at least one other thing that I wished I would have done… I never noticed the flea’s the entire time that I was preparing the apartment to be rented. I have since come to find out that fleas can sometimes hide out in the carpet and not show their faces if their is not a lot of activity going on. This is why I believe that I did not notice the fleas before I moved the new tenants in… The new tenant noticed them soon after moving in. I tried to take immediate action to resolve the issue. After talking with a veterinarian, it appeared that the spray was the best way to remove the fleas. First I vacuumed the entire place then used a flea spray with a growth inhibitor. This seemed to help some, but the tenant reported the fleas where still around less than a week later. For my next attempt I tried the flea fog (flea bombs), however this returned the same results as the spray. After receiving the call that the fleas were still in the home, I decided it was time to call in the professionals. I hired an exterminator to remove the fleas for good. Before hiring an exterminator it is a good idea to make sure that they “guarantee” that the fleas will be removed. If the first attempt does not do they job they should be willing to treat the apartment again for free (or a minimal cost). Also, shop around, I found a big difference in price between some of the local exterminators. This was a great learning experience for me and hopefully you. First always thoroughly check your apartment for any pests after a tenant vacates, especially if they had pets while in the property. Secondly it would have been much cheaper and less time consuming to hire the professional in the first place. But these are the kinds of things I knew I would run into with my first rental unit. As long as I learn from these experiences the time and money spent will be well worth it. Hopefully you all can learn from my experiences as well. After many years of reading the “Get Rich Fast With Real Estate” articles and never truly buying into their claims of instant money, I did end up realizing that Real Estate provides a great opportunity for anyone. After purchasing the home that I live in, which was a foreclosure, I realized how hard it is to loose money with real estate. So, I finally purchased my first investment home. My first purchase was a duplex with an upstairs and downstairs unit. It is located in the pleasant village of Fredericktown, which is a small town that I grew up in. After walking by this home hundreds of times when I was a child, I would have never dreamed that one day I would own this home. Ok, now for the informational part of this column… I purchased this home from my Uncles and Father who had started a company a while ago and own several rental units around Ohio. For anyone who is trying to do a transaction with a close relative the bank is going to require some additional information. It seems that financial institutions do not really like to do these transactions because you may be bailing your relative out of a bad situation. Even though this was not the case I was required to provide letters as to why they were selling the home and why I wanted to purchase it. Also some form of receipt, in my case a certified check receipt, was required to show that I had given the sellers some form of deposit to secure the contract. It had stated in the contract that I had given them $50, which I had in cash. This was not good enough, so I had to obtain a certified check and give that to the sellers in exchange for the $50 cash that I had originally given them. The bank I was working with also required the past years mortgage statements from the seller to make sure they were making payments on time. So for anyone who is wanting to purchase real property from a close relative keep in mind that it may require a few more hoops to jump through, but it is well worth it if the transaction will benefit both parties. As in my case it did because they were wanting to consolidate their units to a closer location and I was wanting to get started in this whole real estate investment community. If you have any questions or comments please feel free to contact me via email |
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