Accountant says don't invest! Confused.......

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Accountant says don't invest! Confused.......

Thomas Morlan
Granger, IN · Member since 2014 · 2 posts · 5 votes

His exact words....'Don't F@#$*&G do it!!!!!!'.  

I am very confused now.  I have been researching/reading books, blogs, podcasts, anything I can find about real estate investing over the last month or so, trying to learn as much as I can and find the right property to begin my journey into the real estate world, and then he drops this bomb on me.  Talk about bubble bursting, sheezz.  

Allow me to introduce myself and my aspirations.  I am a 44 y/o full time optometrist (eye doctor) practicing and living in Northern Indiana.  My modest short term goal for 2015 was to purchase my first 2,3 or 4 unit multifamily home which produces positive cash flow and see where that takes me.  I have a very important and secure job and am very happy being in the healthcare field.  However, because it cost so much to go to optometry school (any medical school for that matter) I still find myself with a 6 figure student loan note, even after practicing for 15+ years! I tell everyone that having this student loan is similar to owning a second house/mortgage.  My actual mortgage costs $1350/mth and my student loan cost $1050/mth.  It's depressing and my hands feel tied because there is very little, in fact nothing, you can do with federal student loans as far as refinancing.  

Consequently, I do not have much in the way of cash to invest with.  This, by the way, is my accountants main reason for his adamant and very blunt and to-the-point advise.  I believe he subscribes to the (paraphrasing here) 'Dave Ramsey Book of Real Estate Investing', in other words, if you can't invest with 100% of your own cash, it's not advisable.  I tend to think it's a very safe, conservative, and maybe even old fashioned approach, but I don't have personal knowledge of clients who have lost hundreds of thousands of dollars either, as he does.  

When I mentioned all the hundreds of success stories I read about on BP.com and elsewhere, his reply was that for every hundred of success stories posted online.... there could be, and likely are, thousands of failures not posted.  The difference is that the failures are not going to post online (or anywhere for that matter) their failures like someone who will post their success and wants to tell the world.  I'll have to say.... has a point there!?!?

I don't want to give up on my real estate investment dreams, but I just don't know what to do.  Anyone with similar advise? How did you handle it?  Thanks

Tom

2Reply
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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
11y

@Thomas Morlan First. Dave Ramsey isn't an investor...he's a saver (pay down debt)...not the same thing.

Second, your accountant isn't an investor, he's also a saver (efficient use of limited funds)...not the same thing.

Third, those of us on BP (for the most part) are investors (eliminate the limits on existing funds)...and it sounds like you want to do the same thing.

My thoughts?  Watch/listen to Dave R. for entertainment purposes, listen to your accountant to save you money, and listen to other investors to learn how to invest.

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  • Account Closed
    Investor · Kirkland, WA · Member since 2014 · 101 posts · 56 votes
    11y
    There will always be people who say you can't or shouldn't do something. They may be jealous, they may be ignorant...or they may be right. Hear his concerns and weigh them for yourself. But my advice would be to surround yourself with people who don't say "you can't", but with people who say "how can you?". Being on BP is a great start. I'd also highly recommend plugging into a local REI club or two to connect with like minded people who can help you on your "how" without being the proverbial turd in the punch bowl. Good luck!
    7Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    11y

    @Thomas Morlan 

    welcome to the site.

    0Reply
  • Devin Morgan
    Baltimore, MD · Member since 2014 · 91 posts · 49 votes
    11y

    Why would you let someone else's fear stop you? I feel as though even thinking it is already setting yourself up to be let down honestly. Don't get into it because you don't want to get into it not because you're afraid to fail. You think every successful person here has only won? Nope I'm sure plenty can tell you how they've lost thousands. And even then they didn't fail because they then learned what not to do. You think they've won without taking risk? No risk, no reward. But you should never let anyone stop you except you. 

    4Reply
  • Sharad M.Pro Member
    Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes
    11y

    @Thomas Morlan 

    Firstly, welcome to BP!!

    He is your accountant and you should use his services for what he is good at. You should or shouldn't invest in real estate because someone else thinks it's a good or bad idea.

    Specially, if someone just makes a bold statement and doesn't support with facts. Has he done any investments of his own? Did he buy at the wrong time and was looking for appreciation and it didn't work out? Just because he had bad experience doesn't mean that real estate is not a good investment.

    I worked as an accountant before I left my job to do real estate full time and I couldn't be happier with my life. It offers great freedom and flexibility and it's very rewarding when you fix up a old, run down house and add life to it and help the whole neighborhood one house at a time.

    I was very fortunate to start investing at the right time (2010, when prices were rock bottom) and picked up some nice rental properties and my goal is to continue to do that. I try to surround myself with people who share the same goals as I do, but everyone now and then I come across someone who thinks I am crazy for doing real estate full time and my thought it "I wish there were more people like you, then I would have less competition"

    You should tell your accountant to tell all his client to stay away from real estate :)

    Don't let someone's opinion make your investment decisions.

    Best wishes for your future success.

    Podcast Guest on Show #155
    4Reply
  • Kevin Nichols
    Investor · Rock Hill, SC · Member since 2014 · 122 posts · 33 votes
    11y

    @Thomas Morlan You're in the wrong place to be talked out of real estate investing!  :)

    You will see posts here about creative financing, no-money down, success stories...but the choice is yours.

    You're a white collar professional...most likely busy with the day to day operation of your practice. Are you ready to deal with replacing roofs, evictions, vetting tenants, backed up toilets, etc.?  Are you handy or will you choose to be more hands off and use a property manager? Are you able to have 6 months or more of property expenses on hand for your properties?

    These are questions you must think about.

    I just started with the purchase of a duplex near Charlotte, NC. I'm 40, own a web design firm, and live 10 minutes from the property. I've always wanted to have rentals, but never felt comfortable making the leap. I came into a large sum of money after the sale of a mobile app that was acquired, let the money sit in an investment portfolio in 2013/14...then decided to use some of that to invest. 

    Start small....if you have issues, you don't lose a lot.  I bought this $53K duplex with another "handy" business partner...and it's been good for the first few months.  We renovated one side and increased the rent...to now we are getting 29% cash on cash.

    But...in the beginning it sucked up a LOT of my time. We self-manage, and we we did all the renovations ourselves...it always takes longer than what you expect, ALWAYS.

    So in closing, everybody outside of real estate investing says "stay the heck away from it" and everybody in it says "it's been good and we enjoy it."  :)

    2Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    11y

    Hi @Thomas Morlan .  Sounds like your accountant has your best interests at heart.  That's great!  You obviously have a relationship with him as well to seek their advice regarding RE investing.  Folks like accountants and attorney's where all they see pretty much is the messes people can make over-leveraging themselves in RE would tend to believe that.  I think I would to.  Sounds like he is only speaking from a position of fear for you, though, not as an informed or experienced investor.  I know of Dave Ramsey and his form of no debt, ultra-conservative investing.  I used his debt snowball plan to purge myself of all consumer (non-mortgage anyway) debt as a matter of fact.  Your first option is to punch your student loan debt in the nose.  Cut your lifestyle to scorched earth and throw everything you have at it. Paying it down is a risk-free, tax-free, hassle-free return.  No tenants, no toilets, no risk.  Keeping it around for the interest deduction is not sophisticated.  Option 2 may be to house hack.  Cut back enough to live in one of the units of the 2, 3 or 4-plex you buy.   I'm your age with family also and don't see that happening.  If I were to invest in your situation I would do it in my backyard, making sure I am getting a good value and having my 25% down saved already.  I would get a good broker to help me buy and possibly a good PM because I am busy doing what I love as a full-time job.  Best wishes!

    6Reply
  • Christina R.
    Investor · DMV Maryland · Member since 2013 · 867 posts · 370 votes
    11y

    Welcome to the BP Nation. People tend to discount what they don't understand; with all the research you've been doing - and finding this wonderful site- you are probably heads and tails above your accountant in REI knowledge. If REI is a path you want to follow then start with baby steps and see if it's for you. If you can buy ONE property by whatever means you find works for you (retirement account, OPM/leverage, etc) , based on sound investing principles you learn here and other valid RE sources, then you will know if REI is for you. Only you can make that decision. Good luck!!

    2Reply
  • Kent Verge
    Investor · Bentonville, AR · Member since 2014 · 114 posts · 40 votes
    11y

    Is your accountant living the lifestyle you aspire to live? My guess is that he isn't...

    3Reply
  • Jesse T.
    Herndon, VA · Member since 2014 · 1k+ posts · 324 votes
    11y

    Welcome to Bigger Pockets.

    Is buying another primary residence and renting out your current one a viable option?  It won't necessarily be the best investment, but it can be a relatively simple way to get started.  

    You would have very limited tax benefits if you are leveraged and can not deduct "passive losses" due to your income level.  If you could pay cash, the tax benefits are better because you can use the depreciation to "shield" some rental income from taxes. 

    0Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    11y

    @Thomas Morlan First. Dave Ramsey isn't an investor...he's a saver (pay down debt)...not the same thing.

    Second, your accountant isn't an investor, he's also a saver (efficient use of limited funds)...not the same thing.

    Third, those of us on BP (for the most part) are investors (eliminate the limits on existing funds)...and it sounds like you want to do the same thing.

    My thoughts?  Watch/listen to Dave R. for entertainment purposes, listen to your accountant to save you money, and listen to other investors to learn how to invest.

    8Reply
  • Scott Pigman
    Austin, TX · Member since 2014 · 139 posts · 89 votes
    11y

    First thought, "a month or so," ain't a hell of a lot of time have been studying real estate before jumping in to buy something, so that'd scare me regardless of whether you had 0% or 100% to put down.

    Second thought is, is your accountant's objection only that you shouldn't borrow for investment properties, or do you also not meet some of the other "Dave Ramsey" rules?

    • Do you have a budget?
    • Do you spend less than you earn each month?
    • Do you have a three to six month emergency fund?
    • Have you paid off your other debts besides the mortgage and school loan?
    • Are you contributing money to a retirement fund?

    If you can answer yes to all of those then is agree that your accountant's probably too conservative. If you have to answer no to most or all of them, then he's right. You need to get control of your existing finances before taking on another debt.

    Now personally I'm not fully on team Ramsey, but I definitely have one foot in his camp. About six years ago we did the whole rice and beans thing for a year and paid off "everything but the house" and it was one of the best things we ever did. It meant that later when we became parents my wife could quit her job to be a stay at home mom -- it's not for everyone I know, but it's what she wanted and we couldn't have done it if we still had all of our other debt.

    But what I do regret is that we did buy into the whole DR "only borrow for your primary residence, if even then" philosophy and as a result we spent most of the recession on the sidelines missing out on deals that are probably gone forever. 

    6Reply
  • William Baumann
    Real Estate Investor · Elkhart, IN · Member since 2014 · 119 posts · 50 votes
    11y

    @Thomas Morlan Welcome to BP!!  I have to echo many comments already, in that YOU are the one who has to decide if Real Estate Investing is right for you.  Everyone has their opinions, but I will say this, If your careful, conservative, and thoughtful in your investments, what can it hurt you to at least try?  You have more willing advisors here at BP than any other resource I know of to help you make sound investment decisions, people that will point out oversights, and help you prevent making costly mistakes.  Don't bet the farm, but I encourage you to explore your options. 

    0Reply
  • Mark Ferguson
    Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    11y

    There are many real estate agents who don't understand investing, let alone accountants. Financial advisors don't understand real estate investing either for the most part. Most people have no idea about what real estate investing is about or the positives.

    My accountants are awesome, but I would not listen to them for a second about their real estate investing strategies. They spend all their time accounting, not investing. In fact sometimes I think they don't like all the houses I buy, because it makes my returns more complicated. 

    4Reply
  • Stacy E.
    Investor · Norfolk, VA · Member since 2014 · 125 posts · 19 votes
    11y

    Welcome Thomas! You've gotten a lot of great information on here.  I think it comes down to your goals and what you will do to reach them.  I agree with Morgan when she said, "Why would you let someone else's fear stop you?"  People do many things out of fear or lack of understanding.   It's hard when you have student loans (at least the interest rate is low) but what are you going to do to change it?  It doesn't sound like you want to keep them for another 15 years... It may come down to you making a pro and con list.  Best of luck to you.

    1Reply
  • Steve B.
    Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    11y
    as an optometrist I'm surprised you havn't paid off your student debt in 15 years. you either need to save more and spend less or get a better paying job. until you can pay off your loan I wouldn't be borrowing even more money on a new endeavor you have no experience with. sounds like you have a very thoughtful accountant
    5Reply
  • Joe Kim
    Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
    11y
    Originally posted by @Thomas Morlan:

    His exact words....'Don't F@#$*&G do it!!!!!!'.  

    Consequently, I do not have much in the way of cash to invest with.  This, by the way, is my accountants main reason for his adamant and very blunt and to-the-point advise.  I believe he subscribes to the (paraphrasing here) 'Dave Ramsey Book of Real Estate Investing', in other words, if you can't invest with 100% of your own cash, it's not advisable.  I tend to think it's a very safe, conservative, and maybe even old fashioned approach, but I don't have personal knowledge of clients who have lost hundreds of thousands of dollars either, as he does.  

    In 8 months of investing in properties and buying 5 properties, I bought 3 properties using 100% financing. 25% of downpayment came from low interest HELOC (3.75 to 4.25%) and then 80% in the 30 year fixed traditional mortgage at 4.75%. I have no problems with tenants paying both the HELOC and mortgage which paying down the principal in the mortgage which effectively puts money in my pocket (for the future). My networth was negative a few years ago but after this year it jump to over a million (combination of rental properties and personal property increasing in equity)

    Dave Ramsey is for people who aspire to be debt free.   Real estate investing is for those aspiring to be wealthy( or financially free and not bound by a job) by accumulating appreciating assets, reducing tax burden, depreciating debt, and second source of income or cash flow.   

    There is good debt (mortgage paid by tenant) and bad debt (credit card).   Good debt is debt that produces income/value.   Bad debt is debt that does not increase income/assets.  Student loan debt is neutral (most people can get tax breaks from the interest).   But your student loans are a reflection of your high paying salary (optometrist!) so I would put it in the good debt category.   If you told me you had 100K student loan debt after graduating in sociology/psychology with a job at starbucks or a low paying salary job, then yes, the student loan is bad debt.

    Lastly, take a few weekends to read: Richest Man in Babylon.   Make sure to read the section about paying yourself FIRST (10% of your income).    It will change your prospective about not having enough capital to invest.    

    4Reply
  • Joe Kim
    Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
    11y

    One more thing.   Find a CPA who invests in real estate.   

    4Reply
  • Steve B.
    Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    @Joe Kim 

     You understand by taking on as much leverage and debt as you can in a hot market you make the most money, but hopefully you also understand that you loses the most money when you are fully leveraged and the market contracts right?  Anyway I hope you have great timing and an exit strategy so you are not caught being this leveraged when market conditions change or are you a subscriber the the famous BB theory of "perpetual appreciation"?.  The problem i've seen with aggressive investors is the same as one that i've seen with aggressive gamblers: They will keep pouring in money UNTIL they lose it all, they never walk away ahead.  Hopefully this does not apply to you.

    0Reply
  • Joe Kim
    Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
    11y
    Originally posted by @Steve B.:

    @Joe Kim 

     You understand by taking on as much leverage and debt as you can in a hot market you make the most money, but hopefully you also understand that you loses the most money when you are fully leveraged and the market contracts right?  Anyway I hope you have great timing and an exit strategy so you are not caught being this leveraged when market conditions change or are you a subscriber the the famous BB theory of "perpetual appreciation"?.  The problem i've seen with aggressive investors is the same as one that i've seen with aggressive gamblers: They will keep pouring in money UNTIL they lose it all, they never walk away ahead.  Hopefully this does not apply to you.

    There is a time to be aggressive and there is time to be conservative.   I wanted to be aggressive at the tail end of one the BEST markets we've seen in recent memory.  However, now the recession is over so the greatest deals are gone but real estate investing has good opportunities in almost any climate.  To clarify, this current market is no longer "hot" but finding good deals is  much harder than before but still the window of opportunity is open due to low interest rates. 

    In terms of debt, how much you can handle depends on a number of factors(income, savings, size of portfolio).   Thankfully, real estate offers several exit strategies unlike stocks (when you lose value....there's not much you can do except risk more (Double down) or get out before losing more).   Interestingly, your risk is much much higher when you only have one or two rental properties.   When you have many more, risk is mitigated by having multiple (cash flowing) properties that cover any loses (vacancies, evictions, unexpected repairs), you may have.  Also, I would recommend diversification to multiple markets (not just the one in your neighborhood).

    Lastly, my example is probably a bit too aggressive for the average joe.   Thankfully, I'm not average and don't plan to be average in my real estate investing.   

    0Reply
  • Joe Kim
    Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
    11y
    Originally posted by @Steve B.:

    @Joe Kim 

      Anyway I hope you have great timing and an exit strategy so you are not caught being this leveraged when market conditions change or are you a subscriber the the famous BB theory of "perpetual appreciation"?.  

    REAL real estate investors invest for cash flow in deals that make sense not purely for appreciation.   Appreciation is a nice icing on the cake but the cash flow is the real yield that keeps on giving no matter what the market does to the value of the home.  

    That's why I don't invest in cyclical markets like California, New York, etc...   

    2Reply
  • Steve B.
    Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    @Joe Kim 

     As long as you understand it's a gamble with a calculated risk and you are willing  to accept that,  then the only disagreement we have is one of individual risk tolerance.  The only point I will disagree with you on is lowering your risk by diversifying among markets.  While this may help to mitigate regional differences it wont help with a systematic downturn in the market like we saw in 2007.

    I will say that there are a lot of posters on BP, some fairly regular that seem like the next wave of Kiyosaki acolytes, talking about leveraging to the hilt and perpetual appreciation.  I strongly believe that if the current market gets somewhat softer many of these posters will disappear from BP entirely.   One problem with a robust market, whether it's stock or real estate, is that people who have just been lucky start believing they are smart and know something about investing, this puts them in a tenuous position to lose everything.

    3Reply
  • Shawn Holsapple
    Residential Real Estate Broker · Indianapolis, IN · Member since 2010 · 1k+ posts · 557 votes
    11y

    Welcome @Thomas Morlan !

    Keep in mind that a CPA's job is to "crunch the numbers" or to be your "bean counter".  Most do not have the skill set to be financial advisors.  The Ramsey school of thought is fine but I personally don't want to wait around to be able to buy something for 100% cash - esepecially with interest rates at a historic low [it's almost free money] and the low cost of getting into cash flowing properties.

    I would fire you CPA and find one that will support you like @Nathaniel Busch .

    - it's always good to see another Hoosier utilizing this great site!

    Of course, you need to read The Ultimate Beginners Guide to REI here on BP

    If you haven’t already, please read/listen to these books ASAP!

    Rich Dad Poor Dad

    Rich Dads Cash Flow Quadrant

    Rich Dads Increase your financial IQ

    The Real Book of Real Estate

    The ABC’s of RE Investing

    The ABC’s of PM

    Rich Dad RE Tax Advantages

    The E-Myth

    The 4 Hour Work Week

    http://flip2freedomacademy.com - free e-book

    Flip2freedom episode 77[http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/] - podcast - LISTEN TO THIS TODAY!

    BiggerPocketsPodCast

    Wholesaling101 You Tube Channel

    Kent Clothier – You Tube Memphs Invest channel

    4Reply
  • Scott Pigman
    Austin, TX · Member since 2014 · 139 posts · 89 votes
    11y

    So everyone is ready to jump down the CPA's throat for not being gung ho about buying investment property. I guess one shouldn't be surprised, it is a bit like asking a home brewing club if one should be a teetotaler.

    I'm going to play devil's (or Ramsey's) advocate here (again).

    The fact that the OP is still complaining about school loans after 15 years of practicing is a red flag that he might not have control of his personal finances. Doctors are somewhat infamous for jumping into the whole "I'm a doctor now so I deserve the matching his-and-hers BMWs, the 5000 SF house in Yuppie Acres and the killer home theater," -- and having debt up to their eyeballs.

    If that's the case even successful investing isn't going to solve his problems. If making more money was all it took to solve financial problems then there wouldn't be any bankrupt lottery winners or football stars. It ain't a money problem; it's a behavior problem. 

    Frankly I agree that Dave Ramsey does go overboard with the "save save save and never borrow" message --- but that doesn't change the validity of his core message that financial problems are seldom caused by having a lack of income, but rather by poor spending habits that need to be cured first.

    7Reply
  • Nathaniel Busch
    Certified Public Accountant · Columbus, OH · Member since 2014 · 80 posts · 75 votes
    11y

    @Shawn Holsapple , thank you for the introduction!

    As a CPA who also invests in real estate and as Shawn mentioned, services many real estate investors, perhaps I can offer a unique perspective...

    I love Dave Ramsey, and I love his advice. His advice is geared towards folks that need it the most. I would consider this population to be those with tens of thousands of dollars of unsecured credit, significant student loans, and all sorts of high interest debt with either depreciable assets (autos) as security or simply no security at all to the lender. 

    His methods are meant to escape troubling financial situations and are extremely helpful and valuable to those that need that. 

    On the other end of the spectrum, I have several clients who are professionally licensed making very good incomes, with money to spend. Their only debt is a low rate, fixed mortgage on their home (which has less than 80% loan to value), and they have at least six months of living expenditures set aside in low risk savings. These are the folks I would not steer towards Dave Ramsey, and more towards the world of creative real estate financing to help them enhance their portfolio and personal net worth. It's all a sliding scale, depending on the financial health of the client. 

    If your goal is to climb out of a troubling situation and be able to feed your family, I wouldn't use real estate to do that. That's what a 9-5, good paying job is for. 

    If your goal is to gradually replace your stable job with stable, leveraged income over time, real estate investing has value. 

    There is an age old saying along the lines of "if you're looking to get into real estate to be rich, you'll be anything but that". In other words, enter real estate with a gradual and patient approach with short term successes in mind. Win each day and achieve each success marginally. After several years of small successes and wins, you'll far outpace your goals. 

    In short, listen to Dave Ramsey and what he advises. But more importantly, pay attention to who he is really talking to. Is it you? Well, that depends on your financial situation. Use a CPA that has the wisdom to apply a sliding scale to your situation. 

    Nathaniel Busch, CPA

    [email protected]

    614-475-7560

    5Reply
  • Cal C.
    Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    Sorry if this has been covered in someone else's post, but I didn't read everyone of them.

     Anyway, like some others have said your accountant is being conservative with his Dave Ramsey like advice.  He might look at the fact that you have a very significant student loan which you haven't paid off after 15 years.  

    In his eyes you have never gotten serious about paying it off because if you had you would have it paid off by now.  He is concerned and perhaps correctly that RE investing will only add more debt hanging around your neck.   He knows your serious about your practice but he may think you won't be serious about RE investing and thus you have more debt dragging you down. 

    I listen to Dave Ramsey quite a bit. I had paid off everything but the houseS (big S emphasized my rental properties) prior to listening him.  I think he has some great points about debt and for most people who are unable to pay off their debts (your acct seems to think that might be you) the advice is fantastic IMHO.  I will admit I enjoy hearing the success stories and listen to the problem stories for schadenfreude.  

    Bottomline- I think you should work real hard to pay off that 15 year old student loan.  If part of that hard work is RE investing then go ahead and do it.  But if RE investing is just going to be something your not too serious about then avoid it.  

    One other point, if you are married and your wife doesn't have a full time job then she may qualify for RE professional status.  That could provide you some great tax benefits, but there are a lot of caveats like having to work 750 hours doing some form of RE and to take advantage you would have to have paper losses over 25K. 

    2Reply
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