Real estate investors

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3/5/2019 1:19 PM

Hi all, seeing if there are any real estate investors out there in MX land. I have a couple properties here in MA and would like to get a few more. I am educating myself on how to get things done out of state and would love to hear from folks in different states where there may be some value, especially states that are owner friendly. MA is definitely not one of those..lol. I’m interested in smaller single family homes. Love to hear how others are making out in different parts of the country as the taxes and prices are not too favorable for what I’m trying to do. Thanks

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3/5/2019 3:53 PM

Paging Newmann.

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"Sorry Goose, but it's time to buzz the tower."

3/5/2019 8:01 PM
Edited Date/Time: 3/5/2019 8:01 PM

That is what I do for a living.......questions? at the end of the day its basically buy low sell high......Nebraska is very landlord friendly......

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3/6/2019 7:42 PM

We just bought a house that we will live in and rent out part time on Airbnb. It's on a lake so we can get pretty good money for rentals, especially on holiday weekends. Have you considered doing that at all? It can be pretty profitable if you live close enough to manage it yourself or can find affordable help to clean it in-between renters.

We also have a condo that we rent out in Missouri while we live in California. If you are going to go that route it can be a little depressing come tax time. This was our first full year of renting it out so our tax form comes in and says me made 12,000. Now get to pay taxes on all of that 'profit' from my understanding. But most of it went right back into the property to make the payment. I don't think we can really write anything off because the standard deduction is so large. I'm not sure what to do to avoid all those taxes.

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3/7/2019 7:05 AM

smashingpumpkins167 wrote:

We just bought a house that we will live in and rent out part time on Airbnb. It's on a lake so we can get pretty good money for rentals, especially on holiday weekends. Have you considered doing that at all? It can be pretty profitable if you live close enough to manage it yourself or can find affordable help to clean it in-between renters.

We also have a condo that we rent out in Missouri while we live in California. If you are going to go that route it can be a little depressing come tax time. This was our first full year of renting it out so our tax form comes in and says me made 12,000. Now get to pay taxes on all of that 'profit' from my understanding. But most of it went right back into the property to make the payment. I don't think we can really write anything off because the standard deduction is so large. I'm not sure what to do to avoid all those taxes.

Just like in your day job, if you make money then you have to pay taxes. If you think about it, its not a bad situation because if you are paying taxes, then you made money. We all want to make money. We all want to pay less in taxes however.

The thing about having some rental properties is that, most people are in a situation where they are cash positive, but the rental will show a Net Loss on their tax return. This is in regard to the average Joe having a couple of rentals, not flips or someone that owns enough units to do it for a living.

Obviously I don't know your personal tax situation, but if most of your "'profit' went right back into your property", then I don't think you will be owing any tax. Also, depreciation expense is most people's largest rental expense, and that doesn't show up on your cash flow statement.

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5/2/2019 4:29 AM

smashingpumpkins167 wrote:

We just bought a house that we will live in and rent out part time on Airbnb. It's on a lake so we can get pretty good money for rentals, especially on holiday weekends. Have you considered doing that at all? It can be pretty profitable if you live close enough to manage it yourself or can find affordable help to clean it in-between renters.

We also have a condo that we rent out in Missouri while we live in California. If you are going to go that route it can be a little depressing come tax time. This was our first full year of renting it out so our tax form comes in and says me made 12,000. Now get to pay taxes on all of that 'profit' from my understanding. But most of it went right back into the property to make the payment. I don't think we can really write anything off because the standard deduction is so large. I'm not sure what to do to avoid all those taxes.

You take the standard deduction if you are an employee.

You itemize if you own a business. Which is what you are doing.

Even if you are employed.

Your day job should take care of itself, tax wise, as long as you are having your boss withhold enough.

The properties, they need to go on a schedule C tax form. That's where you add all the expenses vs the incomes on the rentals. Anything connected to running the rentals is a write off. Mileage to and from the properties, or to lowes and back is I think 52 cents s mile. Any materials is a write off. Any contractor fees, write off. Insurance on the properties, write off. You need to save those reciets. Add all that stuff up, and take it off the money that comes in. All this happens on a schedule C.

If, after all that you still made s profit, well, you have to pay income tax on that amount only.

It's all in the 1040 tax book. You can't go 1040EZ in your situation. You need to go 1040 with a Schedule C added in.

Rentals. Everybody thinks they are so easy.

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