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Last Updated: May 14th, 2012 - 22:24:01 |
Having vinyl installed on your floors seems affordable but rarely is. The labor involved is often 3 times the cost of the material.
When vinyl tears it can be expensive to keep replacing. One of the tear areas is the kitchen. When tenants move in and out they have to move their refrigerator in and out as well, often tearing the vinyl.
Here's a way to reduce your cost. Install commercial grade tile in your kitchen! If a tile breaks all you have to do is replace the tile.
Here's a term for you, "Componentize Your Properties". This is a very valuable technique.
As you know, when you own rental property you get to depreciate the dwelling for tax purposes. You take the value minus the land, divide it by 27 1/2 to get your annual depreciation amount.
By "Componentizing Your Properties" you are breaking them down for tax purposes. For example you might figure the value of the driveway, tress, bushes, fence, stove, carpet, dishwasher, roof, cupboards etc.
Many of these items have a 5 year depreciation table.If you do this with your roof and you have to replace it, your can deduct the cost that year. I'm told that with a house valued at $150K, you can save an average of $2,000-$6,000 by doing this. It's tedious but something to consider.
The more properties you have the more powerful this technique becomes. Of course, consult a tax planner or attorney before trying this.
About The Author - Mark Walters has written
"SHORT SALES - A GUIDE FOR FORECLOSURE INVESTORS".
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