All Forum Posts by: Aaron Zimmerman

@Matt Rezac I would say that's the opportunity on a lot of buildings that don't have at market rents. I would encourage you to think about not just year 1 returns, but longer term. If you can get the units up to fair market rent over the course of 2-3 years while house hacking, the numbers can still make sense 

Totally agree with this approach of setting side reserves. Whether it be Taxes or property repairs, maintenance, capex, reserves are crucial to ensure your property stays afloat. 

Doing one on TurboTax is fine. I’d encourage you to make sure the basis of your property is done correctly as that impacts all future years of depreciation. I have seen so many mistakes over the years so definitely be careful.

How long have you owned the business? Perhaps there's a way to make the insurance business passive. I'd look at the material participation tests to see if you qualify for any. If you don't, then you would be considered passive. In the event of an audit, you'd need to prove your passive.

Assuming you're passive, then you can buy long term or medium term rentals and do a cost segregation study

@Mary Jay exactly. There'd still be some income tax unless you find ways to offset that income. With a Roth conversion, you're saying to the government, tax me now, but now I won't be paying any taxes later 

I would definitely recommend house hacking to start. It will Ideally be a gateway to purchasing more deals and allow you to save quicker. 

I'd recommend going to local meetups to connect with other investors and those in the real estate trades to expand your network. It's cliche but your net worth is definitely your network. 

Without house hacking, you'll need to save up 25% for a rental property as an investor loan which is a lot starting out. With house hacking, you can put down as low as 3%. 

Why not both? You'll need to qualify for income or potentially use alternate loan options. Learn the ropes from an experienced agent that will take you under their wing, add value to them, and add value to your clients. Sell property and then invest yourself!

It depends How much you have to convert over to a Roth and how much you expect your income to be. I would take a look at the tax brackets published by the irs each year to see. 

House hacking is the way to go. Work with a lender to get preapproved, then start working with a realtor to find properties. In the meantime, educate yourself as to what a good deal is. Once you've done that, then move onto networking so you can actually execute the numbers in your spreadsheet 

Definitely digital. I have two properties that I keep the books for and just use a google drive folder. I could definitely stand to do an upgrade!