Update on my ‘horror’

[tloony]

Ok. So far I don’t think about that $75K loan anymore.
I’ve got young couple tenants who are quiet and working at local restaurant. They paying my mortgage and I need to take care of my bills only.
Roof is getting to be replaced in 2 weeks.
I am having someone else wants to move in
but not sure. I could use extra money but...

So I guess I’ll be waiting on feedback from you guys.

[NoNamePerson]

Apr 22, 2019 20:08:45 GMT -5 tloony said:

Ok. So far I don’t think about that $75K loan anymore.
I’ve got young couple tenants who are quiet and working at local restaurant. They paying my mortgage and I need to take care of my bills only.
Roof is getting to be replaced in 2 weeks.
I am having someone else wants to move in
but not sure. I could use extra money but...

So I guess I’ll be waiting on feedback from you guys.
[img src="http://syonidv.hodginsmedia.com/vsmileys/smile.gif" src="//storage.proboards.com/forum/images/smiley/smiley.png" class="smile" alt=""]

Are you opening up a Room & Board house now?  Is that allowed by your lender or allowed in the neighborhood?

How many people does it take to PAY YOUR BILLS. I thought your boyfriend (?) was taking care of you and your bills.

[HoneyBBQ]

[swamp]

How many bedrooms and bathrooms do you have?   

What's the zoning code for renters/lodgers/borders?  

[tractor]

Do you have sufficient off-street parking for all your residents?

[NomoreDramaQ1015]

Awesome good for you Loony!   Get more boarders!   Go go go!  You got this, you will be swimming in vacation money in no time!

[NoNamePerson]

I visualize wall to wall bunk beds in bedrooms, hallway, great room/den/living room or what ever it is called. Don't know about basement but wall to wall there to if available. Heck, I see the start of a new TV show replacing Hoarders:

How many people can you stack up in a house in order to pay for your vacation/bills/new boyfriend. "The Stackers" coming to a neighborhood near you.   

ETA: She can also hang them from hooks over the closet doors for extra income also. The possibilities are endless

[chapeau]

Apr 23, 2019 13:42:21 GMT -5 NoNamePerson said:

I visualize wall to wall bunk beds in bedrooms, hallway, great room/den/living room or what ever it is called. Don't know about basement but wall to wall there to if available. Heck, I see the start of a new TV show replacing Hoarders:

How many people can you stack up in a house in order to pay for your vacation/bills/new boyfriend. "The Stackers" coming to a neighborhood near you.   

ETA: She can also hang them from hooks over the closet doors for extra income also. The possibilities are endless

I’m remembering that Seinfeld episode where Kramer had people sleeping in his dresser drawers...

And now I’ve been sucked in. Sigh.

[raeoflyte]

Why are we picking on someone for coming up with ways to pay bills? Renting a room is easily $500+ here. Not sure where loony is, but I imagine she's bringing in good money.

Getting a roommate is always our first advice when someone needs more money and she's not talking airbnb stuff.

It's not like we're getting in new posters here...

[NoNamePerson]

Apr 23, 2019 13:57:57 GMT -5 raeoflyte said:

Why are we picking on someone for coming up with ways to pay bills? Renting a room is easily $500+ here. Not sure where loony is, but I imagine she's bringing in good money.

Getting a roommate is always our first advice when someone needs more money and she's not talking airbnb stuff.

It's not like we're getting in new posters here...

tloonya said:    I’ve got young couple tenants who are quiet and working at local restaurant. They paying my mortgage and I need to take care of my bills only.

She already has a young couple to pay her mortgage. And looking for more people to rent out rooms too. How many people does she need to rent out rooms to to pay the rest of her bills. One to pay power, one to pay gas, one to pay internet/phone/tv, one to pay for food, one to pay taxes, one to pay insurance. Got to have one big ass house to house that many people to take care of all that.

[raeoflyte]

Apr 23, 2019 14:04:42 GMT -5 NoNamePerson said:

Apr 23, 2019 13:57:57 GMT -5 raeoflyte said:

Why are we picking on someone for coming up with ways to pay bills? Renting a room is easily $500+ here. Not sure where loony is, but I imagine she's bringing in good money.

Getting a roommate is always our first advice when someone needs more money and she's not talking airbnb stuff.

It's not like we're getting in new posters here...

tloonya said:    I’ve got young couple tenants who are quiet and working at local restaurant. They paying my mortgage and I need to take care of my bills only.

She already has a young couple to pay her mortgage. And looking for more people to rent out rooms too. How many people does she need to rent out rooms to to pay the rest of her bills. One to pay power, one to pay gas, one to pay internet/phone/tv, one to pay for food, one to pay taxes, one to pay insurance. Got to have one big ass house to house that many people to take care of all that.

So a couple rents the basement, and you rent out a bedroom. Seems like a pretty good plan for someone with a honey across town who has their own place. If I didn't have kids and an uptight dh I'd be all over that.

The other plans...not so great. This one, I think we're picking on just for the sake of it.

[ken a.k.a OMK]

There are some big old houses in Philly. Along one street near Drexel they were turned into frats. We probably slept 25 in our house. 

ETA. Our basement was fixed up for parties. 

[justme]

To be fair to the picking - a lot of places on stipulations on how many non-related people can live in one residence. The enforcement on it might be low, but if  her area has one adding more might run afoul of those laws. 

[justme]

I forget which one she is in...but in Pittsburg you can't have more than 3 non-related people in a house. With a couple and her if she's in that city she's at the limit.

pittnews.com/article/65412/opinions/oakland-housing-occupancy-limit-serves-no-purpose/

ETA: Found it for Philly. Same limit of 3 planphilly.com/articles/2015/10/13/landlords-lose-court-challenge-to-philadelphia-s-definition-of-family

[phil5185]

""ETA: She can also hang them from hooks over the closet doors for extra income also. The possibilities are endless""

On submarine duty, the racks are about shoulder wide, stacked floor to ceiling, about 2 feet apart.   And they have 'hot' beds - ie, when you report for duty, the incoming dutyman gets your bunk.

[raeoflyte]

Apr 23, 2019 14:40:27 GMT -5 justme said:

I forget which one she is in...but in Pittsburg you can't have more than 3 non-related people in a house. With a couple and her if she's in that city she's at the limit.

pittnews.com/article/65412/opinions/oakland-housing-occupancy-limit-serves-no-purpose/

ETA: Found it for Philly. Same limit of 3 planphilly.com/articles/2015/10/13/landlords-lose-court-challenge-to-philadelphia-s-definition-of-family

Fair enough to point that out, but getting roommates is still advice we give out all the time.  And damn good advice in my opinion.  Getting called out on something like this I'd say is going to happen if your neighbors complain, which is where your off street parking comes in.  

I apparently have a pretty low regard for this kind of city ordinance though.  I had a family of 5 living with me (rent free--just helping them out) for 2 months last year which wasn't "legal" in my city and I'm 1 chicken over the limit which is the lowest # of animals I've ever exceeded a city limit by.  

[dannylion]

"One Chicken Over the Limit" would be a good band name.  


OK, now I have the unintentionally hilarious performance of "One Toke Over the Line" by that terminally naïve duo on the Lawrence Welk Show stuck in my brain.  

[NoNamePerson]

Is the income from all these renters taxable?  

[raeoflyte]

All income is taxable. Another good point.

[ken a.k.a OMK]

Apr 23, 2019 16:08:24 GMT -5 NoNamePerson said:

Is the income from all these renters taxable?  

Not under the table. 

[NoNamePerson]

Apr 23, 2019 15:43:46 GMT -5 dannylion said:

"One Chicken Over the Limit" would be a good band name.  


OK, now I have the unintentionally hilarious performance of "One Toke Over the Line" by that terminally naïve duo on the Lawrence Welk Show stuck in my brain.  

And One Flew Over the Cuckoo's Nest comes to mind!  

[Deleted]

Apr 23, 2019 15:43:46 GMT -5 dannylion said:

"One Chicken Over the Limit" would be a good band name.  


OK, now I have the unintentionally hilarious performance of "One Toke Over the Line" by that terminally naïve duo on the Lawrence Welk Show stuck in my brain.  

You sure about this?  A toke and Lawrence Welk just don't go together.    

ETA: OMG, it is true.  I just watched it on Youtube.  LW called it a "modern spiritual."

[dannylion]

Apr 23, 2019 17:33:57 GMT -5 @bamafan1954 said:

Apr 23, 2019 15:43:46 GMT -5 dannylion said:

"One Chicken Over the Limit" would be a good band name.  


OK, now I have the unintentionally hilarious performance of "One Toke Over the Line" by that terminally naïve duo on the Lawrence Welk Show stuck in my brain.  

You sure about this?  A toke and Lawrence Welk just don't go together.    

ETA: OMG, it is true.  I just watched it on Youtube.  LW called it a "modern spiritual."

Yes, it really happened.  It's a classic.  Ran across it on YouTube some time ago (and may actually have shared it here in a different context).  They had no idea what it meant.  They just saw the "Sweet Jesus" part and ran with it.  That's why I called it "unintentionally hilarious."   (For future reference, if I were going to make up an anecdote, I'd definitely choose a central figure considerably less lame than Lawrence Welk or any of his equally lame minions .)

[TheOtherMe]

Apr 23, 2019 16:13:01 GMT -5 raeoflyte said:

All income is taxable. Another good point.

Then there is the depreciation issue and the eventual recapture issue.

I still say sell the place so ex gets his equity or refi and pay him his equity.

[NoNamePerson]

Apr 23, 2019 17:57:31 GMT -5 TheOtherMe said:

Apr 23, 2019 16:13:01 GMT -5 raeoflyte said:

All income is taxable. Another good point.

Then there is the depreciation issue and the eventual recapture issue.

I still say sell the place so ex gets his equity or refi and pay him his equity.

It's her daughter's inheritance lest you forget. 

[Rukh O'Rorke]

Wow, so #nogo to the golden girls retirement strategies??

[raeoflyte]

Apr 23, 2019 17:57:31 GMT -5 TheOtherMe said:

Apr 23, 2019 16:13:01 GMT -5 raeoflyte said:

All income is taxable. Another good point.

Then there is the depreciation issue and the eventual recapture issue.

I still say sell the place so ex gets his equity or refi and pay him his equity.

You don't have to depreciate the asset though, and for boarder income I don't think I would unless I was planning on keeping a renter in long term.  I don't have a lot of experience with it.  I think I've seen it claimed once or twice maybe and we likely wouldn't have considered it in income calculations anyway so I'm no expert on it.  But to keep it on the up and up, I'd claim it.  I think it would be better served on a Schedule C, where you could include what % of the house was dedicated to it.  Utilities I'd divide it up by # of people and deduct the tenants percent as an expense most likely.   

As far as what to do with the ex and equity, I totally agree, but the whole inheritance thing muddies those waters and I just can't.  

[TheOtherMe]

Because of where I worked, I did claim it when I had a person renting a room in my house for 3 years.  I also claimed the depreciation. % of utilities.  Don't remember the exact details.  I also had to deal with it potentially being investigated by the NCAA and I had to send a copy of the check to the athletic department monthly.  

That was back when long distance calls were shown separately on the bill.  He reimbursed me for his calls.  I already had the phone, so I didn't deduct it.  

This was about 30 years ago.  I talked to my boss at work and he advised me on how to claim it on my tax return.

[Deleted]

Let's get real here though.  Loony is not going to claim the income, so no sense in worrying about dealing with depreciation or anything else taxwise. 

[NoNamePerson]

Apr 23, 2019 19:42:57 GMT -5 Rukh O'Rorke said:

Wow, so #nogo to the golden girls retirement strategies??

Blanche here!