 convert primary to rental (by Susan Jeck [FL]) May 27, 2013 5:14 PM
 convert primary to rental (by V [OH]) May 27, 2013 5:20 PM
convert primary to rental (by Susan Jeck [FL]) May 27, 2013 6:11 PM
convert primary to rental (by kt [IL]) May 27, 2013 6:22 PM
convert primary to rental (by Ken [NY]) May 27, 2013 7:11 PM
convert primary to rental (by Heather [IL]) May 27, 2013 7:39 PM
convert primary to rental (by S i d [MO]) May 27, 2013 8:13 PM
convert primary to rental (by Robert J [CA]) May 27, 2013 9:00 PM
convert primary to rental (by Nicole [PA]) May 28, 2013 6:02 AM
convert primary to rental (by Susan Jeck [FL]) Posted on: May 27, 2013 5:14 PM
Message:
My daughter just signed a quit claim deed for a duplex we co-own when she moved out of Florida. It's now $20k underwater, so I need to rent it. Is there anything I need to do, other than find a tenant, in order to legally 'convert' what was a primary residence (for her) to rental property? Any tax considerations I need to address?
TIA,
Susan
--71.229.xx.xxx |
convert primary to rental (by V [OH]) Posted on: May 27, 2013 5:20 PM
Message:
First you need to print-read and understand your local tenant laws along with the state laws, then you can form a lease to work in court, scratch around your area to find what a same sq ft house in comperable condition will rent for.
How did the property become underwater, oh I see this is a financial thing - you need to study the market and choose to sell or rent based on what the rent market will bear. --75.94.xxx.xxx |
convert primary to rental (by Susan Jeck [FL]) Posted on: May 27, 2013 6:11 PM
Message:
Yes, I have done that much...I just wanted to be sure I didn't miss something BIG!
thanks! --71.229.xx.xxx |
convert primary to rental (by kt [IL]) Posted on: May 27, 2013 6:22 PM
Message:
If im not mistaken u dont pay capital gains on your primary residenance if u have lived there 2 out of last 5 yrs
This can amount to a good amount
something 2 consider. --74.36.xxx.xxx |
convert primary to rental (by Ken [NY]) Posted on: May 27, 2013 7:11 PM
Message:
Make sure you convert your homeowners insurance policy to a landlords policy --72.224.xx.x |
convert primary to rental (by Heather [IL]) Posted on: May 27, 2013 7:39 PM
Message:
You need to screen the prospects very well past landlords, credit, criminal, you can do credit and criminal right on this site, landlords, you have to do that yourself, always call the LL before the last because if they are being evicted must of the time you will get the best of references. Don't allowed pets they ruin your property.
Read a lot of books about LL you can buy it right here on this site, is better to learn from books than the way I got my experience, from the school of hard knocks. --50.9.xx.xx |
convert primary to rental (by S i d [MO]) Posted on: May 27, 2013 8:13 PM
Message:
Whoa here...too many missing details.
A duplex you (used to) co-own that is now underwater? I assume that means your daughter was of legal age (18 or older). I also assume you have a mortgage on the property.
If your daughter co-signed the mortgage note with you, she is still on that note. A quit claim deed only removes her ownership rights; it does nothing to stop her obligation to pay. If she is on the note, see about getting her off as quickly as possible. Difficult since it's underwater. But this could turn up to bite her years down the road if there are any issues with the loan not being paid.
Have you considered selling it and just writing a check for the difference? It would probably be cheaper and less stress getting that monster out of your lives rather than becoming a "by accident" land lord with a member of your family still tied into the debt. $20,000 seems like a lot, but might be your best shot at solving this quickly and for good unless you see the market recovering quickly, in which case you can hold on for a year or two and then sell.
A lot of "by accident" land lords are not cut out to be land lords. Better to cut your losses and keep your sanity and good relations with kin. --108.250.xxx.xxx |
convert primary to rental (by Robert J [CA]) Posted on: May 27, 2013 9:00 PM
Message:
The IRS tried to pull a fast one on my. I had a hard rental, my old primary residence that took time to find the right family. The fools at the IRS wanted me to start my depreciation and write offs the day my lease was signed. Again, they are fools. The correct date you can start taking deductions and write-offs is the first date you advertise the property for rent. So obtain proof of online adds, signs, etc. --173.60.xx.xxx |
convert primary to rental (by Nicole [PA]) Posted on: May 28, 2013 6:02 AM
Message:
you need to check with your municipality. many require licensing and codes inspections prior to renting. --72.95.xx.xxx |
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