All Forum Posts by: Aaron Eveland

Trying to get some information on how taxes work because I may need to hire the professional this year. I have a W2 job, self employment and then my rental properties. I have used TurboTax for the last few years as it seemed my taxes were logistically manageable. But I just acquired another rental property, dropped $25k in the renovation at the end of 2021. Through my W2 job, I have already paid about $17k in taxes and it appears I will owe another few thousand. Through turbotax I get the standard depreciation, but I have been hearing about accelerated depreciation and it seems that can bet the best way to lower my tax burden. I will likely hire a professional CPA to take care of my taxes, but want to understand if the accelerated depreciation will help me. Also, if you have any referrals for tax pros in Hawaii, please let me know. 

Thank you for the insight. Rather than a cash out refi, I am doing the Heloc route. I leverage a Heloc to buy a small condo a few months ago and plan on cash out refi-ing the condo, closing out my heloc, and getting a new heloc with the huge amount it has appreciated. What are your thoughts about pro v cons on that strategy. But I still have the idea in the back of my mind of selling it and wait to deploy a huge amount of capital very strategically. Hahaha. 

Thank you for your response Winston. My goals were to acquire buy and hold properties that cash flow, ideally in locations that likewise have appreciation. For this specific property I should have 2 years of residency to not need the 1031 exchange. I’m young(ish) and want to grow my portfolio but the insane appreciation is having me reconsider my strategy. I’m still committed to my original strategy of buy/hold investments, but seeing the neighbors house sale for 1 million is distracting my focus.  

With this hot market it’s tempting to sell. I have a house/duplex in an incredible market that is a great rental that I never thought of selling. But seeing what a house sold for next door is causing me to reconsider. Rental brings in about $2,200 net income (P/I, utilities) not including cap Ex nor vacancy. However based off the numbers I am seeing of houses selling, I am sitting in about $450,000 gross profits off a selling it. Maybe upwards of $550k. Anyone got advice?