Posted by Rob FL on April 18, 2000 at 19:42:27:
About 10 years ago they got rid of the personal deduction on Schedule “A”, but it has always been deductible for business and real estate.
Does your roof leak??? - Posted by Tim
Posted by Tim on April 17, 2000 at 20:58:37:
I need a new roof…real soon. the estimated cost is about $2,700.00 My problem is that I was not planning to replace this roof for at least a year or more. My cash flow is very tight right now and what cash on hand I do have is limited. Does anyone have any suggestions as to how to finance this expense? It’s a rental and I’m under the impression that for a home equity line of credit, it must be your primary residence. I have other homes. All have equity available in them. I’m currently renting an apartment, so I can’t touch my primary residence.
Thanks in advance!!
one easy solution - Posted by Steve
Posted by Steve on April 18, 2000 at 17:46:28:
how about finding a house to flip next month? thus you’ll get the money to fix the roof.
This may sound a bit ‘extreme’ for a solution … - Posted by SusanL.–FL
Posted by SusanL.–FL on April 18, 2000 at 08:05:56:
but sell it (instead of replacing the roof).
We had a SFH that was about due for a new roof. Rather than replace the roof (which would have been too costly on a rental), we sold the property ‘as is’ with owner financing, and got FULL price for it!
WIN-WIN solution all around.
P.S. That was the property I sold in three minutes flat! NO KIDDING! People walked thru/loved it/signed on the dotted line!!
The buyer said, “bet you never sold a house THAT fast before”! I was busy catching my breathe b/4 I could answer…
Good luck with your roof!
Susan
If you sell your place, just turn around and reinvest the proceeds in another property.
Re: Does your roof leak??? - Posted by Tim
Posted by Tim on April 18, 2000 at 01:37:49:
Hi Tim
You’ve got big problems.
The lack of (enough) cashflow WILL kill you! Get rid of your properties that don’t produce.
As for the roof (the now problem), fix or repair it, don’t replace it unless you have to, repairs are deductable in the tax year that they are performed (cashflow plus for you), the replacement is not, then, though the intrest is not deductable, use the C/card. Even though thats not wise.
Offer your poorer producing properties for sale now, while you can.
I hope I don’t sound harsh, I don’t mean to. This is reality, man you’ve got to get on your “cash crises” problem.
Take Care and Good luck!
Lee
Re: A delay may be costly. - Posted by Rolfe Kurtyka
Posted by Rolfe Kurtyka on April 18, 2000 at 24:12:39:
Tim;
An expensive option would be to refinance one of the rentals where you have equity. Of course, the refi is expensive, and rents would need to cover the additional debt service.
Some of the larger sub contractors will offer payment plans. Last, perhaps you could acquire a new credit card and charge the cost of the roofing.
Good Luck! Rolfe
Re: Does your roof leak??? - Posted by Rob FL
Posted by Rob FL on April 18, 2000 at 11:28:50:
Not to contradict you because everything else you said was great, but you can deduct credit card interest for business type expenses. On Schedule “E” there is a expense deduction for “other interst.”
Re: Does your roof leak??? - Posted by Lee
Posted by Lee on April 18, 2000 at 16:06:34:
Thanks Rob,
I had “heard” that C card intrest wasn’t deductable.
Lee