Investors mail offers for out-of-state property

INSPECTOR NEEDS LONGER

Q: I am a home inspector, and I’ve referred countless people to your column. Your advice is honest and straightforward.

However, in your column, I noticed a statement that said, in effect, that a buyer should be able to get an inspection report within a week of signing the contract. I suppose that may be true in some places, but that wouldn’t necessarily be true in our area.

There are many factors that delay an inspection. It’s not just that my schedule gets full; it’s also that sellers drag their feet, tenants refuse access to their home, agents create unrealistic deadlines, buyers go out of town — the list goes on. So, I just want to clarify that an inspection within a week is probably not the norm in many places. — askedith.com

A: Thanks for taking the time and going to the trouble to write me. You’d think that after 40 years I’d remember how things differ from one location to another. Thanks for setting me straight. I’d be interested to hear what time limit you’d like to see stipulated in your local purchase contracts.

INHERITED A PROPERTY

Q: Last year, I inherited my grandfather’s lake cottage, and I’ve been renting it out. A teacher might rent it for the winter. There’s no mortgage, so how do I figure the deduction for depreciation on my income tax? — G.

A: That so-called expense for depreciation has nothing to do with a mortgage. It’s figured from your cost basis, which is the cottage’s market value at the time you inherited it, or when you converted it to a rental property.

If you’re going to be a real estate investor — it sounds as if you already are — you should have professional help with bookkeeping and tax returns. Find yourself a certified public accountant.