Real Estate Investing: What if I don't take depreciation value on rental property, when I'm already at a net loss in the 1st year? |
- What if I don't take depreciation value on rental property, when I'm already at a net loss in the 1st year?
- Buying tenant occupied Section 8 homes... What do I need to know?
- Investors who bought undeveloped land at a bargain, what did you do with it? Would you do anything different if you could do it again?
- Offer Accepted Yesterday on Door #9 in 7 Months... This is FUN!
- Should I flip the house I'm currently renting?
- How should I gain leverage
- Mentorship
- Is it crazy to invest in property and still live with my mom?
- City Terrace, CA
- WA: What should I look for, if an area seems to be ideal (for investing) in every way, but it's still not thriving?
- I am wondering if doing a property exchange is ever successful and what are the pros and cons.
- Purchase of property - Covid moratorium
- Is there any proof foreign money is buying?
- After 5 years will I better off holding or upgrading to a larger property?
- Question About Dealing with Seller's Listing Agent
- Anyone investing in farmland?
- Found an REO property how do I reach out and negotiate?
- Looking to buy a property, potentially a 2 unit. Does it make sense for me?
- Help finding insurance for 8 unit property
- Anyone else starting to see inventory increasing?
- Confused about NYC Tax - Potential First Time Home Buyer
- Is Managing other people's airbnb a scam?
- STR landing website
- Why do i get random texts from people wanting to buy one of my properties?
- What's the oldest property you'll consider, and what things do you watch out for?
| Posted: 09 Apr 2021 10:14 PM PDT Hi all -- seeking your help with some rental income-related tax advice! (I haven't completed my 2020 taxes yet) I just started renting my owned apartment that I moved out of middle of last year (2020). It took a while to find a renter, so for most of the year it wasn't bringing in any rent $, but did eventually get rented in October. I know that part of declaring rental income on your individual tax return is taking depreciation value to offset the profit. However, due to the situation, I am already at a significant net loss for the year just after mortgage interest, property taxes, HOA, etc. If I were to apply depreciation, I would have even more of a net loss, and I'm sure that would take me several years to use up the carry forward net loss to offset any profits in future years (if there even is any profit). So, can I choose not to depreciate the property for tax purposes for 2020, and only start depreciating it when I actually have profit to offset? I imagine that if I ever decided to sell and still had net loss carry forward $ amounts leftover, it would be "lost" and I would still have to pay the taxes on an eventual sale price minus the depreciated amount. So it would only be to my benefit to delay using it for depreciation as long as my losses are already offsetting my profit. Is this the right way to think about it? Can I do this? Is this advisable? Thanks! [link] [comments] |
| Buying tenant occupied Section 8 homes... What do I need to know? Posted: 09 Apr 2021 05:52 PM PDT I've got a pretty sweet deal on five SFHs for $363k. All five are rented, but two of them are Section 8. I've never had a Section 8 home, and I have no idea what it entails. What are my expectations? What are the tenants? How do I get paid? [link] [comments] |
| Posted: 09 Apr 2021 04:41 PM PDT I'll keep this short. My wife found a deal on an undeveloped lot in an older subdivision in a master planned community. We used part of our stimulus check to buy a .36 acre plat for $1k, and it appraised for $3k last time it was sold in the 90s. There are lots of very inexpensive POA benefits in the community, so we're thinking the last owner (who died/is no longer around) just owned it to get those POA country club benefits. We're interested in learning more about real estate as an investment, and potentially interested in improving the land with a small home. Any advice for us as we get started with our tiny little test? [link] [comments] |
| Offer Accepted Yesterday on Door #9 in 7 Months... This is FUN! Posted: 09 Apr 2021 04:00 AM PDT No one to really celebrate with so I thought I would share my awesome news with this fantastic community. I'm loving learning the ins and outs of real estate investing and the opportunities to create generational wealth. Be better than you were yesterday!!! [link] [comments] |
| Should I flip the house I'm currently renting? Posted: 09 Apr 2021 03:01 PM PDT We currently have the option to buy the house we're living in (renting) for 50k directly from my landlord. The house could use some work which I'm fully capable of doing myself. We want to move to a bigger house anyways and was thinking if we could flip this house and make some profit that it would be great. Houses in the area seem to be selling fairly quickly and at higher costs. We have already been in touch with a real estate agent about getting a house and a loan officer. Should we attempt to flip? Should we get their advice? Never bought a home so I know bare minimum about real estate. Thanks for all your help! [link] [comments] |
| Posted: 09 Apr 2021 05:39 PM PDT I am completely new to real estate investing and have managed to save $10,000, I would like to buy a duplex for around $30-40,000 to rent to my construction LLC as an office space and warehouse as a tax write-off for my LLC while paying for either a loan or mortgage with the money, as well as find a tenant to stay in the other half. However I don't have any credit and have never owned real estate before so I can't get a mortgage, I then thought about taking a personal loan, but saw they are not tax deductible on income from the property, but personal loans are tax deductible for a business. Would it make sense to create a sole proprietorship in order to use interest payments on real estate as a tax write-off? [link] [comments] |
| Posted: 09 Apr 2021 08:28 PM PDT Hey everyone, I'm new to the group. I'm currently active duty, in Hawaii. Just bought my first home out here and looking to get into real estate investing. I keep seeing that it is important to have a network and mentor! Any advice for finding one or referrals? I've been reading a lot but still not sure where to start. Thanks in advance! [link] [comments] |
| Is it crazy to invest in property and still live with my mom? Posted: 09 Apr 2021 01:50 PM PDT So basically I still live with my mom but would it be realistic to buy, and rent or lease out a place for some extra income? I live in the DFW area and don't really want to invest in something far away so looked into what's nearby. I have 30,000 in cash and was thinking about putting 20% on a 90,000 dollar condo. I come from a poor family so there's not really a ton of knowledge the folks can give me on this kinda stuff so what do you guys think? Has anyone been in this situation before, and how hard would it be to get a tenant out of the house if I wanted to move in about 2-3 years? I also make enough money so that I'd be able to pay off the mortgage fairly easily even if nobody wanted to move in for some reason. [link] [comments] |
| Posted: 09 Apr 2021 10:31 PM PDT Anyone live here or invest in the area? Looks like the area is going through some changes. Is the area being gentrified? Or has it already complete it's course? Any insight to the local area would br appreciated! [link] [comments] |
| Posted: 09 Apr 2021 02:00 PM PDT I can't for the life of me understand some things about Washington State. I have my eyes on a economically slumped area (Cowlitz county) where the real estate is quite reasonable and within an hour drive of Portland. I just can't figure out why property values are so low here. It seems to be quite pretty, and with all the influx of people moving to Washington State, one would think this area would be a no brainer for future investments. Close proximity to the coast, the Columbia river, Oregon and two large cities (Portland, Vancouver) and reasonable distance to Seattle. Outdoor recreation to be had (close proximity to skiing, hiking, lake fishing, river fishing, coastal fishing, hunting, biking, kayaking, water sports, swimming, etc as well as famous mountains, and cave systems). There seems to be a decent setup for port industry (river transport with ocean access), as well as massive industrial parks. Weather seems to be a bit rainy, but its year round mild (a boon for retirees) with no severe snow or severe summer heat. Decent and growing economy, two malls, usual box stores and fast food restaurants... What am I not thinking of, that is causing this area to have such high poverty? Is it the proximity to Mount St. Helens, that is scaring away industry? To put it another way: I want to invest but... what's the deal here, is this a trap? What is the trap? [link] [comments] |
| I am wondering if doing a property exchange is ever successful and what are the pros and cons. Posted: 09 Apr 2021 01:41 PM PDT We own a single family rental property, but it is six hours away from where we live. I've read a little bit about real estate exchanges between property owners. Does anyone here have experience with this for a single-family dwelling? It would be great to have a rental property close by. [link] [comments] |
| Purchase of property - Covid moratorium Posted: 09 Apr 2021 06:04 PM PDT I'm making an offer on a multi with a month to month tenant in place. Does anyone know if I'm stuck with a non-paying tenant under the moratorium if it turns out they haven't been paying? I've asked their status and not getting any quick info. Thx [link] [comments] |
| Is there any proof foreign money is buying? Posted: 09 Apr 2021 09:45 PM PDT Is there any evidence that this market is driven by foreign investors? I don't think so, but that's why I ask if there's any evidence behind ut [link] [comments] |
| After 5 years will I better off holding or upgrading to a larger property? Posted: 09 Apr 2021 07:42 PM PDT I am very new to all of this and am buying my first property, which is the property my parents currently rent from, valued at $490k. In 5-10 years they will probably not live there any longer and I could potentially sell the place and invest in a more valuable place. I don't plan on living in either of these, they are just investments. I know that the benefit of upgrading to a larger place would be that I would be earning slices of a larger pie, but I also know that rates are super low right now, and in the future they will probably be higher so that's a factor. What do you guys think would be the better of the two: trade up or hold? The reason I am asking this by the way is because I am trying to figure out if I should by points on my mortgage [link] [comments] |
| Question About Dealing with Seller's Listing Agent Posted: 09 Apr 2021 07:17 PM PDT Hey there, I'm looking at investment properties, primarily Town Homes. Is it bad or in poor taste to ask if the Agent if the seller is motivated, or if they believe the seller will accept $x amount of dollars, before making a formal offer? My ceiling is $110k, but looking to offer around $90k (depending on monthly HOA fees) and see what happens to achieve a desired monthly net. I CAN go higher, just depends on the HOA and how desirable the property is. A lot of properties I'm highly interested in, end up having around a $300 monthly HOA. Nice units, neighborhoods, but would hurt my net. Thank you. [link] [comments] |
| Posted: 09 Apr 2021 01:55 PM PDT When life gives you lemons.. buy a farm? I'm trying to get creative since I've basically been priced out of buying a home. I've been saving to start a real estate investment company with a group of people and I've also been saving for a house of my own. The plan was to buy towards the end of the year but now things are too high to accomplish my goal(s). Instead of sitting on cash for both ventures, I've been considering buying into the stock market (broad diversification) on the next correction to try and keep up with/beat rising home prices and general inflation. This is risky short term but so is holding cash right now. Alternatively, I was thinking about buying in a different sector when returns have been historically high and a good hedge during inflation. I recently came across FarmTogether which is similar to Fundrise but for farmland. Currently all the crowdsourced farmland opportunities seem to be limited to accredited investors but it sounds like that may may change soon. There are also a couple REITs (FPI and LAND) for the plebs like me. Has anyone had experience with farmland investing? Either passively or physically buying land? Ideally I would invest passively but if I could find a way to generate revenue without working on it myself I'd seriously consider actually buying land. That's actually sounds kind of cool. What does the internet think? [link] [comments] |
| Found an REO property how do I reach out and negotiate? Posted: 09 Apr 2021 05:28 PM PDT It's a half finished home owned by a very small mom and pop lender/financial institution "insertnamehere capital. They specialize in foreclosure loans. It's on the hud website. Market value is 300k, assessed is 225. I already have a lender I'm working with but I could kill two birds with one stone and get a loan with this group as well as buy this property. I hope to get it for 190 what should my starting offer be 140? How do I negotiate this should I send an email or go in person Monday? I'm thinking go in person Monday under the pretense of getting a loan first then start popping the questions about the property. How do I negotiate? I'm an amazing negotiator with things I'm knowledgeable on (top in sales at work) but I'm extremely ignorant to all of this. This would be my first property ever. I have the potential to finish it, live in and love it. Or finish it and flip it. I would get a straight up mortgage to buy but I have the cash flow to finish it quick! [link] [comments] |
| Looking to buy a property, potentially a 2 unit. Does it make sense for me? Posted: 09 Apr 2021 12:27 PM PDT 27M here. Graduated college with a bachelors just under 2 years ago. Looking to maybe invest in a property to start building wealth. Some factors is I am unstable in the sense of where I want to buy it. I have family all over the place and I live alone in a heavily populated area. I'm not sure if I will be here my whole life, but as of now it's okay. I have a stable job and make about 62k salary plus commissions, I'll probably bring in about 67k this year. I have $31,500 in cash and I save about $900-$1000/month. I have 15k debt all student loans, payments are a low $215 per month. Car is paid off. No credit card debt. Does it make sense for me to buy a property and maybe get a property manager? Remember I will most likely not be living in my property and I could always leave this city if I end up finding a better job or if I get bored of the area. So based on these factors is it smart for me to buy a property? [link] [comments] |
| Help finding insurance for 8 unit property Posted: 09 Apr 2021 04:09 PM PDT I'm looking for any and all tips on finding decent insurance pricing for a small multifamily property. I'm buying an 8-unit property built in 1991 and the units are 2bd/1ba. I already own two triplexes (nicer buildings with 2bd/3ba units) in the same market and the annual insurance for those is $345/unit. The quotes I'm getting for this new 8-unit property are running around $535/unit. How can I find better rates for this property? Are there any particular types of providers I should be seeking out? [link] [comments] |
| Anyone else starting to see inventory increasing? Posted: 09 Apr 2021 04:51 AM PDT I have a bunch of lots in a subdivision that is wrapping up and have been holding off on building with material prices and Covid construction delays. A few weeks ago I was looking to see the resales in the area and it was almost nothing. went for a drive a week later and saw a ton being rehabbed and looks like a bunch are coming to market now. Even homes that weren't rehabbed seem to be coming on the market to see what kind of price they can get. It looks like with half the country having at least one vaccine shot people are trying to capitalize on high prices while they can. Any one else noticing increase in supply all of a sudden? [link] [comments] |
| Confused about NYC Tax - Potential First Time Home Buyer Posted: 09 Apr 2021 10:17 AM PDT Hello r/realestateinvesting! I hope this is an appropriate post, but apologies if it is not. I'm considering becoming a first time home buyer through purchase of a 3-bedroom apartment in NYC. I'm trying to build a rigorous financial model and do all necessary homework before making a decision. To that end, I'm trying to calculate annual property tax incidence. NYC's resources for determining roughly expected annual property tax seem quite robust. Specifically, I've used the following links (assuming $800,000 property value) to determine an expected annual property tax incidence of $10,102. Breakdown of math after the links. https://www1.nyc.gov/site/finance/taxes/property-tax-rates.page https://www1.nyc.gov/site/finance/taxes/property-determining-your-assessed-value.page https://www1.nyc.gov/site/finance/taxes/property-determining-your-market-value.page Estimated Property Value/Price/Assessed Value: $800,000 Assessment Ratio: 6% ($800,000 * 6% = $48,000) Assessment Value: $48,000 Class 1 Tax Rate: 21.045% ($48,000 * 21.045% = $10,102) Annual Property Tax: $10,102 Despite this information, I'm not confident that $10,102 should be my full expected property tax incidence. I have a couple of questions:
Thanks! [link] [comments] |
| Is Managing other people's airbnb a scam? Posted: 09 Apr 2021 09:40 AM PDT I've seen quite a few of these catchy advertisements online touting huge returns by managing other people's Airbnb. As someone who has a very unique and popular Airbnb; I'm fascinated by what the basis of their claims are you going off of. Please if anyone has further information and can elaborate further It would be greatly appreciated! Thanks in advance [link] [comments] |
| Posted: 09 Apr 2021 01:22 PM PDT STR Hosts: Do any of you have a landing website for your STR? I'm looking to create a website with a simple domain name that I could advertise or direct prospective renters to, show my availability calendar, include a blog page, option for mailing list for news/price reductions, etc. I don't need booking ability linked to my Airbnb listing, but would like the user to have the ability to select dates and submit a request that would land in my email inbox. I tried using Lodgify but it seems kind of clunky, and almost too much for what I'm trying to do. Also, it's not blocking out my availability calendar properly with my linked Airbnb listing, it only lists "blocked" dates, not "reserved" dates. I also tried Wix but their calendar feature is more tailored to "appointments" vs reservations. [link] [comments] |
| Why do i get random texts from people wanting to buy one of my properties? Posted: 09 Apr 2021 09:34 AM PDT And how do they find my number. Any way to protect my privacy [link] [comments] |
| What's the oldest property you'll consider, and what things do you watch out for? Posted: 09 Apr 2021 01:06 PM PDT Hi all, Thinking of making an offer on a set of properties containing a couple of duplexes and fourplexes built in late 1930s, located in the humid climate of Houston, TX. They're made of wood (not brick), and have window AC units and hardwood flooring. Obviously, I'll get a full inspection, but this is my first time buying a property built before 2000, so what should I watch out for? Will it be a headache to maintain these? I plan to budget 20% of monthly rent for management, repairs, and capex. Appreciate any help! [link] [comments] |
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