2million's Personal Finance Blog

My Journey to Financial Freedom

March 10, 2006

Calculating Cost Basis for Rental Property

In 2005 I converted my home to a rental propety. In preparation for preparing my taxes this year, I need to establish my cost basis for the property. I paid $160,000 for this property. However, I have read in multiple...
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March 13, 2006

Determining Depreciation Amounts for Rental Property

Earlier I calculated that the total cost basis for my rental property was $162,042.00. I have done some weekend tax reading and it looks like there are several ways to maximize the depreciable parts of my cost basis.Essentially the breakdown...
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May 1, 2006

Best Rental Property Books

If you are looking for a great source on information on taxes and rental properties, I have some recommendations for you. I have just finished reading both of these books and between the 2 of them I feel they have...
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June 19, 2006

Inside FSBO Offer Negotiations

When I and the seller negotiated for the home I am purchasing we did the contract negotiations entirely over email. This gave me a written record of everything that happened and presents a great opportunity to do a post mortem...
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June 22, 2006

Tax Question - Converting Rental Property to Primary Residence?

I have been trying to understand the implications of renting all or part of my new property while I am on my temporary assignment. I will be away for the rest of the year and hope to rent out some...
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July 14, 2006

My House Notebook

A lesson learned from my 1st house conversion to a rental property is to get organized now as I buy new house. I have realized I need to keep everything that affects the cost basis of the property in case...
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October 5, 2006

Don't Rush When Settling Up on Services Performed

While I was back home getting my HVAC repaired I also had a chimney guy out for the 3rd time trying to get a damper installed in the fireplace. This transaction was off to a good start when the person...
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October 18, 2006

The Real Return on My Rental Property

I have been renting my 1st home for just over a year and now have 12 months of data to look at. Lets see how this investment is fairing. I purchased this property for $160,000 in 2002, lived in it...
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June 25, 2007

House #2 Converted to a Rental Property

Another financial milestone occurred this weekend as I moved out and converted the house I bought last year to a rental property. So far so good. I am not receiving anything close to the cash flow of myfirst rental property....
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July 16, 2007

Management Company for Rental #1

I have been trying to figure out how to handle both rental houses while I am away on assignment. I believe I am ok on Rental #2 (the house I just converted to a rental property) - I made sure...
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August 20, 2007

Mortgage Escrow Accounts Untimely Adjustments

Last month I converted my 2nd house to a rental property. My mortgage payment was $787 including the mortgage payment and escrow payment for taxes and insurance. I rented the house out for $860/month which covered the monthly payment and...
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February 20, 2008

Lease Agreement Add Ons for Rental Property

I have been renting property for a couple of years now and finding it quite profitable. I am still not an expert but I have learned a few lessons along the way. Here are some things I would recommend that...
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