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  • How To Make An Offer On A House Without An Agent In 2022

    How To Make An Offer On A House Without An Agent In 2022

    Featured Image by Pixabay

    Buying a home is the most important financial investment that you will ever make. There are dozens of details to take care of before you close on a property, the most important one may be making the initial offer to buy. Most people with minimal market knowledge choose to work with a professional realtor for guidance when buying a home. However, that doesn’t mean that it’s not possible to make an offer on any property you choose without an agent.

    The key is having a clear idea of what type of home you are looking for and the area in which you would like to live. Doing your research about the surrounding market will provide you with invaluable tools to help you make a wise decision about the home that you want.

    You don’t need to be a licensed realtor to make an offer on a property. Anyone can make a legal offer on a home for sale as long as certain guidelines are followed. Let’s take a look at a few tips on how to make an offer on a house without an agent in 2022.

    Do Your Research

    It is not recommended that you act spontaneously when dealing with real estate. Buying a home is a huge financial responsibility, and everything to do with the process should be considered carefully. One of the best ways to enable yourself to make a wise decision is to do your research. 

    You will need to find out as much detail about the home in which you are interested as you can. Knowing the size, age, and condition of a home is imperative and you can get this information from the listing agent. From there, you need to broaden your research beyond the home itself and take a look at the neighborhood and larger community. 

    Put It in Writing

    Verbal offers on a home are not legal or binding in most circumstances. If you want to make a serious offer on a home, you will need to put it in writing. You can have your lawyer draw up an offer proposal, find a template online, or just wing it on your own. Your offer should include this information:

    • Property address
    • Amount of deposit presented
    • Applicable contingencies and conditions on your offer
    • Closing date
    • Amount of offer
    • Offer timeline and deadline

    Wait for a Response

    Most offers on real estate will include a deadline for the sellers to respond. You should hear something back within that time frame. It can be stressful to wait for a response to your offer, but it’s important to not interfere with the process. The sellers have a lot to consider and have the right to take the full amount of allotted time to make their decision. 

    If your offer is approved, it’s time to celebrate. However, there will be more work for you to do before your closing and moving date. If you are serious about buying a property, your first move will be to follow these steps to make an offer on a home without an agent.

  • 4 Home Winterization Jobs Worth Hiring a Professional to Tackle

    Guest post by Bret Engle

    There’s something charming about getting ready for winter. As you unbox sweaters and stack firewood, don’t forget to make sure your house is ready for the season too. While some winterization tasks can be done DIY, others are above the average homeowner’s paygrade. Here are four projects on your to-do list that you should rely on professionals for:

    1. Install energy-efficient windows

    Inefficient single-pane windows could be spiking your winter energy bills. Replacing them with double-pane windows is a big project, but it pays for itself over time in reduced heating and cooling costs and increased home value. In addition to opting for double-pane, consider how the windows operate. According to the Department of Energy, awning, hopper, and casement windows are more airtight than sliding models.

    2. Inspect the roof

    Between freeze-thaw cycles and heavy snow loads, winter is the hardest season on your roof. Make sure it’s up for the challenge by scheduling a roof inspection each fall. A professional will assess the condition of your roof based on interior and exterior factors. They’ll check for roof sagging, damaged and broken shingles, corroded flashing, and signs of moisture accumulation on the roof, as well as signs of water damage on interior ceilings. It’s best to fix these problems as they arise rather than waiting and needing to replace the entire roof. In Franklin, OH, most homeowners can expect to spend between $6,000 and $8,053 on a new roof, which can make a dent in anyone’s budget.

    3. Clean the gutters

    Sure, you could clean the gutters by yourself. But who wants to spend a day perched on a ladder, digging in the muck? Not to mention, cleaning gutters is one of the more dangerous jobs around the house: According to the CDC, 43 percent of all fatal falls involve a ladder. Hiring someone to clean your gutters costs, on average, less than $200, and the small expense is worth saving yourself the trouble.  

    4. Maintain the furnace

    Fall furnace maintenance should be a part of every homeowner’s annual schedule. Not only do furnace inspections reduce the odds that you’ll end up heat-less in the middle of winter, it also protects your family from a potentially fatal carbon monoxide leak. During an inspection, an HVAC technician will test the furnace’s thermometer calibration, lubricate its motor, and ensure all parts are unobstructed and in good working condition.

     

    While some home winterization jobs are best left to professionals, other tasks homeowners can do themselves to save money and hone their handyman skills.

    Infographic Source: HomeAdvisor

    • Reverse ceiling fans: Many people don’t realize it, but most ceiling fans have two settings: one for summer and one for winter. Flipping the switch on ceiling fans will cause the blades to push warm air downward for winter to keep your house warmer.
    • Replace the furnace filter: A dirty air filter causes your HVAC system to work harder than it needs to, resulting in higher energy bills and a less comfortable home. Throw away your old furnace filter and replace it with a clean filter of the same size before turning the heat on.
    • Seal drafts around doors and windows: Worn-out weatherstripping and cracked caulk give cold air entry points into your home. Check doors and windows for drafts and seal air leaks as needed.
    • Check smoke and carbon monoxide detectors: Fall prep is a good time to make sure all smoke and carbon monoxide detectors are in working condition.
    • Gather snow supplies: Don’t find yourself in a snowstorm without a shovel in sight. Go shopping for shovels, snow melt, ice scrapers, warm clothing, and any other necessary winter supplies before bad weather hits.
    • Prepare an emergency kit: Sometimes, there’s no shoveling your way out of bad weather. Make sure you’re prepared for getting snowed in by buying non-perishable foods, bottled water, batteries and flashlights, and firewood. If you don’t have a fireplace, consider purchasing a kerosene space heater for backup heat.

     

    There’s a lot to accomplish before winter arrives. Hiring professionals for the big jobs helps homeowners get everything done in time so they can enjoy the winter season in comfort.

    Image via Unsplash

  • We Buy Dayton Houses (Especially in These 29 Areas)

    We Buy Dayton Houses (Especially in These 29 Areas)

    Featured Image by Unsplash

    2022 was forecasted to be a good year for Dayton real estate, with it coming 17th in the top housing markets of the nation. It’s a good time to enter this market, as the city’s thriving economy will likely make this success last for many years to come. However, we know selling a house is no easy feat. It can come with countless renovations, several buyer visits, realtor fees, and, in many cases, slow results. 

    We at Ohio Cash Buyers are here to help. Before listing the areas, let’s take you through why we may be a better choice for you compared to using conventional selling methods.

    We’ll Buy It If You Can’t Maintain It

    Not all properties age well, but that should not affect your quality of life. You should not have to live in a house you’re tired of maintaining or one that you simply do not want anymore. Unlike regular buyers, we won’t need you to put on a pretty facade or start costly repairs. Whether it’s an old inherited property or a memory of a loved one you want to forget, you can sell your house to us immediately. You do not have to fuss over its condition – we’ll buy it from you, and you’ll be able to move on with your life. 

    We’re Fast

    No repairs and renovations won’t only save you money, but they’ll also save you time. You don’t have to change the entire plumbing or get the exterior painted again just because you want to sell your house – we’ll do it later if we feel like it. In addition, we’ll give you an immediate cash offer compared to the 91 days it’ll take for you to sell with an agent. 

    You Don’t Pay Extra

    Selling a house should not cost you — you should be the one making money. We deal directly with you without any third party involved. You won’t be paying commission to an agent, renovation costs to a firm, or a percentage of the closing costs. This will help you save up if you have a mortgage pending: instead of spending on paint, you can save up and deal with that loan completely. You’ll be saving yourself from hidden costs as well. 

    The Areas We Serve

    Here are the areas in Dayton, OH, where you’ll mostly find us buying houses. Do not hesitate to drop us a call if you’re from around these parts:

    • Dayton
    • Beavercreek
    • Bellbrook
    • Carlisle
    • Centerville
    • Clayton
    • Englewood
    • Fairborn
    • Franklin
    • Germantown
    • Grove City
    • Huber Heights
    • Kettering
    • Miamisburg
    • Middletown 
    • Moraine 
    • Oakwood 
    • Oregonia 
    • Sabina 
    • South 
    • Lebanon 
    • Spring Valley 
    • Springboro 
    • Sugarcreek Township 
    • Vandalia 
    • Washington Township 
    • Waynesville 
    • West Carrollton 
    • Westwood Xenia

    Endnote

    A long selling process should not hinder you from moving out of a house and starting a new life. We aim to make the process straightforward for you and speed things up as much as possible.No matter where you’re based or the state your house is in, we’ll get you out of the sticky situation home sellers often find themselves in. We’ll simplify the ordeal and make you an immediate offer. You can look through our client testimonials in detail and see what our past clients have to say about us.

  • Can You Sell A House With A Mortgage Still Owing?

    Can You Sell A House With A Mortgage Still Owing?

    Featured Image by Unsplash

    Mortgage loans have enabled many to have their own houses. However, paying them off is a hassle. This is especially true if you have to move, but the burden of that loan looms on you. However, you can sell a house with a mortgage still owing.

    In this article, we’ll take you through the nuances of mortgages and house sales so that nothing deters you from leaving that old house and starting a new life.

    Selling a House With a Mortgage

    The sales process involved proceeds in the typical manner. In this case, your goal is to sell a house at a higher price than your leftover mortgage limit.  

    As you get the payment for selling your house, you’ll have to pay the remainder of your mortgage balance first. Then, you’ll move on to pay the remaining closing costs associated with a home sale. This includes a realtor’s commission and taxes. The money left over is yours to take.

    Many times, if you’re unable to sell your house at a cost that’s letting you cover your mortgage, you’ll have to cover the balance using other funds. In the case of such sales – referred to as short sales – you will not have the final say over which offer to accept. Instead, you’ll need approval from your lender. This can be time-consuming unless you have sufficient external funds to make up for the difference in the loan amount. If you’ve been building up equity and paying portions of the loan on time, you may be able to persuade the lender to accept a loss. 

    How Home Cash Buyers Can Help With Mortgages

    In a typical selling process, you have to renovate your house, pay for all repairs and pay the commission fees to realtors. This will be burdensome if you have a mortgage to take care of: it can land you in more debt, especially if you arrange for another loan to pay off the mortgage in case of a short sale. Dealing with cash-buying companies is a much better way in this regard, especially if you want to sell the house fast.

    Companies like Ohio Cash Buyers let you sell your home no matter the state it’s in. Since you do not have to pay commission or repairs, you can save up and focus on paying that loan off. We won’t claim it’s the only solution – you may renovate the place and wait until you get a high enough offer. However, getting a cash deal is fast and leaves you with more flexible options and timelines.

    Endnote

    Not having paid the remainder of your mortgage loan should not be a factor stopping you from shifting to another place. To make sure that you do not end up in a short sale, renovate the area and wait for the best seasons to sell a house: spring and summer. However, if you want to get done with everything without investing more money into that property, working with a good cash home buying company is among your best options. Give them a call and see what they offer you.

  • Short Sale vs. Foreclosure – What’s the Difference?

    Whether you’re a buyer or a borrower / seller, a short sale and foreclosure each present different advantages and difficulties.

    What Is A Foreclosure In Cincinnati & Dayton OH?

    In simple terms… “A foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home” (source).  If you stop making your house payments… your lender has the right to foreclose on your property so they can attempt to recoup their money that was lent to you. 

    A home is typically foreclosed on when a borrower fails to make mortgage payments. The lending institution assumes ownership and possession of the property, evicting the borrower. These properties are then sold at auction or more traditional means utilizing the service of real estate agents. A foreclosure can damage the credit rating of a borrower, and make it very difficult to obtain a mortgage for many years.

    Depending on the state that you live in… a foreclosure can work in different ways. Check out the foreclosure process information over here at the HUD Government website.

    What Is A Short Sale?

    In a short sale, the home is still owned by the borrower.

    The definition of a short sale is… “A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt” (source: Wikipedia)

    In some cases, a short sale is an option agreed upon by borrowers and lenders. In a short sale, the home is sold for less than the outstanding balance of the mortgage. The unpaid balance (known as the deficiency) may or may not still be owed by the borrower.

    This option typically takes some time, as a few different lending institutions may own the mortgage. All parties who have a stake in the property must agree to the terms of the sale, and a potential deal could fall through if even one lender doesn’t agree.

    Short Sale vs. Foreclosure – Your Options

    While both options can have ramifications, a short sale often has less of an impact on the borrowers creditworthiness. A foreclosure could impact a borrower’s credit score by 300 or more points, where a short sale may only dent the credit score by 100 points.

    Borrowers who are foreclosed on are often ineligible to purchase another home for 5-7 years with a traditional mortgage, where under certain circumstances, a short sale borrower can purchase immediately.

    As many Americans struggle with an economy that has yet to completely recover from the 2008 crash, folks are having a hard time making monthly mortgage payments. Choosing between being foreclosed and initiating a short sale (or a 3rd option…  selling your Cincinnati & Dayton house fast  )is an easy choice for a borrower having troubles paying their mortgage on time.

    Sometimes, lenders are willing to work with borrowers to complete a short sale, to avoid the fees and time consuming process of conducting a foreclosure.

    Our suggestion is always this.

    1. Talk with your lender and discuss ways that they can work with you on your loan. We offer this service where we can help guide you in the right direction if you run into issues with your lender… just reach out to us on our Contact page and we’ll discuss your situation.
    2. Attempt a short sale or other program your lender may have that forgives part of your loan, creates a new / more affordable monthly payment so you can get back on your feet, etc.
    3. If the bank isn’t willing to work with you very much… your best option may be to sell your house. Work with a local real estate house buyer service like Ohio Cash Buyers LLC to sell your house fast for an all-cash offer. If you’re interested we can look at your situation and make you a fair offer on your house within 24 hours. Just fill out the form on our website over here >>
    4. Foreclosure. Last resort is to let the house fall into foreclosure. This is the worst possible scenario. It’ll harm your credit and you could still be left with money owed to the bank even after the foreclosure is finished.

    By knowing your options, you may be able to dodge a significant impact to your credit score, allowing you to purchase a new home when your situation improves. A foreclosure on your credit report makes that possibility extremely difficult for 5-7 years, so if you have the opportunity, a short sale can be the better option.

    Have a pending foreclosure?  We’d like to make you a fair all-cash offer on your house.

    Give us a call anytime at or
    fill out the form on this website today! >>

  • Fur a Good Paws E-Card

    We wanted to share the adorable little e-card we received from Fur a Good Paws! Click on the card to visit their website and see the good work that they do for our furry friends.

  • Where Are the Profitable Investment Properties in Cincinnati & Dayton?

    Where Are the Profitable Investment Properties in Cincinnati & Dayton-Finding a profitable investment property in Cincinnati & Dayton can seem like a fruitless endeavor. You scour neighborhoods, look at countless homes and attend auctions. No matter how many properties you look at, there never seems to be enough of a margin for you to pull the trigger and be profitable. Are there no worthwhile investment prosperities in Cincinnati & Dayton? Unlikely.

    Follow these rules to help you discover the profitable investment properties in Cincinnati & Dayton.

    Where Are the Profitable Investment Properties in Cincinnati & Dayton?

    Meet the Competition

    Like any other industry, real estate investment is a very competitive arena. The pool of investors vying for the same small pool of properties makes it hard to compete – especially if you are new or not well funded. By understanding who you are bidding against for properties, you will get a better insight about how to compete for the good, profitable deals.

    It can’t hurt to join an investment club and meet the competition. Not only do you learn about them, you become colleagues. Investment clubs are great resources to help you learn, develop partnerships,  and build a bigger real estate investment portfolio. This will enable you to acquire profitable deals you may not otherwise have the funds or knowledge to close.

    Redo Your Math

    Profits are calculated by subtracting costs from the purchase price. It is that simple. If you are losing properties to other investors offering higher prices, look at the numbers again.

    Can the other investors do the rehab for less? If so, why?

    Are the sales prices closing higher than you would have expected because of a change in the market? If so, adjust your numbers allowing you to make higher offers.

    Take a look at all line items and determine if you are in the correct ranges for all costs. It may be that you could acquire a property and still make a profit but you aren’t using accurate calculations.

    Become a Better Negotiator

    It isn’t just the competition that you need to gain a better understanding of in dealmaking. Learn better negotiation skills to improve your chances of closing a property at a price that will be more profitable to you. Sellers have needs. Learn what makes sellers tick.

    Part of what makes a seller tick might be financial distress, a family death or job relocation. Knowing why a seller wants or needs to sell or why the property is distressed in the first place will give you trigger points to work into your conversations on price.

    For example, if the seller is dealing with a probate issue, explaining to them that you are willing to work a cash offer and talk directly to the estate executor could help alleviate stress on the seller. You are offering a solution to the existing problem and this often gets results especially if your offer is below what the seller was hoping to get.

    Find New Opportunities

    We’ve talked about real estate investment opportunities as being a numbers game. The more properties you have the opportunity to see and bid on, the better your chances are to find one that makes you a nice, worthwhile profit.

    Real estate investment clubs are one location to open up more opportunities and even find better deals. You can also talk to the local county clerk to get a list of properties behind on property taxes. In some states you can buy the tax lien certificate and make a few bucks to see if the property forecloses, giving you the first right to the property for pennies on the dollar.

    Street signs are also popular ways to attract sellers who may be in an urgent situation. This is a good opportunity to have them call you rather than you doing all the legwork.

    ARE YOU LOOKING TO SELL A PROPERTY IN Cincinnati & Dayton? WOULD YOU LIKE TO GET A FAST CASH OFFER AND CLOSE QUICKLY? FILL OUT OUR FORM ONLINE AND WE’LL CONTACT YOU AS SOON AS POSSIBLE!

  • Common Investment Property Mistakes Buyers Make in Cincinnati & Dayton

    Common Investment Property Mistakes Buyers Make in Cincinnati & DaytonMany people are diversifying away from stock market investments to more tangible portfolio assets. Real estate investments are certainly the most common tangible asset investors start with.

    However, real estate is costly and thus high-risk if you don’t know what you are doing. Avoid these common investment property mistakes buyers make in Cincinnati & Dayton.

    4 Common Investment Property Mistakes Buyers Make in Cincinnati & Dayton

    Underestimating Costs

    “If you buy it they will come,” seems to be the mentality of many first-time real estate investors. They think that just by getting the title on a property, renters will flood in and thus the money will flow. This isn’t the case.

    In fact, there are many costs first-time investors don’t anticipate that end up costing them because they didn’t factor those into potential rents. These include maintenance, advertising, and repairs. Unlike your own home where you might leave a repair for a while, landlords must fix things in a timely fashion.

    Additionally, tenants don’t always remain in the home and often trash the place while living there. You need to factor vacancy time and property rehab in between tenants.

    Poor Location Selection

    It has been said over and over when it comes to real estate, “Location! Location! Location!” Real estate investments are no exception. Buying a property that is in a less than desirable location makes it difficult to both rent and resell.

    Sure, great deals can be found in depressed markets and unsafe neighborhoods, but at what cost? You may have trouble making your money back after a rehab,  let alone making a profit on the deal.

    Rehabbing properties in high-risk neighborhoods can be profitable but you need to make sure you understand the risks. So make sure to research neighborhoods thoroughly that you are interested in investing in.

    Renting to those in high-risk neighborhoods can mean more problems with upkeep and maintenance, including vandalism, drug and gang issues.

    Not Understanding Financing

    Buying a personal property and buying an investment property follow two very different financing principals. You won’t get the same great financing programs and rates available to owner-occupied homes. In fact, everything from insurance to property taxes will increase with investment properties.

    Expect to have higher down payment requirements for investments and be prepared for higher interest rates. Conduct extensive market research to make sure your property will yield the rental income or sale proceeds to pay the higher costs and still have profit.

    Failing to Perform Due Diligence

    Just because you plan on rehabbing a property doesn’t mean you should ignore all the due diligence requirements of sound investing. This means pulling all title reports and having inspections and disclosures note anything that might be wrong with the property.

    Finding out there is a huge lien on the property transferred to you upon the sale could lead to foreclosure. Similarly, not paying attention to a potential foundation issue can lead to thousands in repairs you weren’t budgeting for.

    Buying a distressed property doesn’t always mean you’re buying a money pit; learn to assess properties to properly budget for repairs and prepare for unanticipated costs. There are always unanticipated costs when buying an investment property, even with sound due diligence.

    Start small with your first investment. There is no need to learn the ropes with a million dollar apartment complex. Buy a single family home or a small multi-family building for your first few deals. This way, in case you make a mistake, it will be a bit easier to recover from.

    IF YOU ARE AN INVESTOR IN Cincinnati & Dayton AND ARE LOOKING TO PARTNER ON A DEAL, CONTACT US TODAY!

  • 3 Smart Financing Strategies for an Investment Property in Ohio

    Smart Financing Strategies for an Investment Property in OhioPopular television shows make real estate investing seem easy with guaranteed profits. What these shows don’t show you are the behind-the-scenes tribulations that investors must go through in securing and rehabbing properties.

    If you are new to real estate investment property buying, use these three smart financing strategies for an investment property in Ohio to reduce your stress and improve chances of profitability.

    3 Smart Financing Strategies for an Investment Property in Ohio

    1. Consider Financing That Includes Rehab Costs

    Most investment properties need some level of fixing. Even if you are purchasing the property to rent out, there will most likely be things you need to do in order to prepare the property for rental. Highly distressed properties may need a complete gutting and rebuilding.

    Factor all costs of rehab into your budget. If the cost is considerable, include a contractor’s estimate for the cost of remodeling the property. Seek a mortgage lender that funds loans that include construction costs. There are some smaller, niche specific lenders that do this. Even the FHA has a lending program that includes construction costs as part of one, complete loan.

    Not only does securing funding with these costs help ensure you have the money to fix the property; it also keeps the entire loan under one note. This usually keeps interest rates lower with more manageable payments. Keeping your own cash in hand is ideal whenever possible.

    2. Make a Large Down Payment

    This may seem like a no-brainer, but many new investors think that they can get into a property with 0 to 5 percent down. While there may be some lenders willing to extend credit on an investment property for these terms, the rates are generally higher and only offered to experienced investors with track records and other assets to back the property.

    Lenders view investment properties as the first place a person will “let go” of assets if financial hardships occur. Simply put, if you were to face serious financial issues, you would most likely keep making payments on your personal home and stall any payments in investment properties. This makes investment properties foreclosure higher risks, thus coming in with 20 percent or more is imperative.

    Not only will most banks require at least 20 percent on investment property, the more you put down, the more favorable your interest and loan terms become. Of course, you still need to maintain enough cash and savings to protect your own personal finances and be able to prepare the property for rental or sale.

    Smart investors often use a home equity line of credit on their own home to make a large down payment and then refinance the equity line on the new property, paying off their personal HELOC. This is leverage debt and a common strategy among real estate investors.

    3. Ask for Owner Financing

    An investment strategy not always considered is owner financing. With loans advertised by every financial institution, it has become common practice for buyers to get a loan through a financial institution. However, historically owners often financed property sales.

    You might be able to find great investment properties where owners are willing to finance the transaction. A situation where an owner has the property free and clear of a mortgage but is moving to downsize or perhaps inherited the property might be a situation where owner financing is a very viable option.

    It is always wise to ask if the owner is willing to finance. The structure usually is a short-term loan with a moderate down payment and monthly payments for a fixed period of time. These are great deals but can be hard to come by.

    IF YOU ARE INTERESTED IN SELLING YOUR Cincinnati & Dayton PROPERTY, PLEASE CONTACT US FOR A CASH OFFER. WE ARE EXPERIENCED REAL ESTATE PROFESSIONALS AND CAN CLOSE QUICKLY AND PAINLESSLY.

  • 5 Overlooked IRS Tax Deductions for Investment Property in Ohio

    Overlooked IRS Tax Deductions for Investment Property in OhioBuying investment property has one specific intention: to make a profit. Of course, maximizing profits means limiting the amount of taxes you pay on revenues. While most property owners deduct the interest and repairs, most overlook other key legal deductions. Here are 5 overlooked IRS tax deductions for investment property in Cincinnati & Dayton.

    Be sure to maintain good records, keep all receipts and discuss all deductions with your tax advisor. Tax laws change frequently and should be reviewed annually.

    5 Overlooked IRS Tax Deductions for Investment Property in Ohio

    1. Insurance Premiums

    Insurance on investment properties is often more expensive than on personal properties because of the higher business exposure for loss. Unlike personal insurance premiums that cannot be deducted, investment property insurance premiums are deductible. Deductible premiums include those paid for property, liability, and flood and earthquake insurance. If you have regular employees who manage or maintain the property, you must also carry workers compensation, which is deductible too.

    2. Casualty and Theft Losses

    Speaking of losses, you can deduct those as well. There is one caveat: you can only deduct an amount over what the insurance company doesn’t pay. For example, assume you have a 10% deductible on the investment property and a fire burns it to the ground. If the value of the claim is $250,000, your deductible is $25,000. You can claim the $25,000 as a tax deduction.

    3. Independent Contractors

    When keeping investment properties maintained, it is an easy trap to find the cheapest help to do odds and ends work.  Often these handymen get paid cash. While this may save you a few bucks in ongoing maintenance and repairs, it doesn’t help with tax deductions. Any independent contractors that invoice you or provide a receipt become a deductible expense. Keep good records and pay with a business check to have further proof of this type of deduction.

    4. Home Office

    Most investment property owners don’t maintain a business office. If you did, that is certainly deductible. However, if you don’t, you are still able to deduct your home office. The IRS allows you to deduct space per requirements of dedicated use, meaning your kids don’t also do their homework at the desk. But if you have a dedicated space with a desk, computer, files, and other related items, you can deduct this.

    5. Local Travel Expenses

    How often are you going to and from the property, running to the home improvement store to get materials or stopping at the bank to make deposits? These are all business related activities and not part of your normal daily activities making them deductible as local travel expenses. Keep a mileage log and any receipts for gas, maintenance, and repairs on your vehicle. At the end of the year, determine if the standard mileage deduction or actual expense save you more money and take the appropriate deduction.

    Legal and Professional Services

    Don’t forget to deduct any legal and professional service costs you incur. It is common for property owners to deduct management company expenses, but don’t always consider the legal expenses for lease review, court costs for evictions and bookkeeping and accounting costs. All of these are deductible from property revenue. In fact, knowing these are deductible expense may sway you to actually employ the services of these professionals. Using professionals in these areas frees up your time to spend on the investment property and other things while you also can sleep better knowing these important things are handled properly.

    Professionals protect you and protect your assets.

    LOOKING TO DO A DEAL IN Ohio? CONTACT US TODAY FOR POSSIBLE PARTNERSHIPS!