All Forum Posts by: Aaron Zimmerman

Yes - I'd look to file the 709 and take as one lump sum. That'd be the cleanest way and less paperwork. 

The goal with house hacking is to reduce housing expenses. If you can live for free, then great, but that's not going to be incredibly common in todays market. So long as the property cash flows upon move out, then go ahead and purchase the property

I would encourage you to look nationwide especially if you're in Austin Texas. Texas does not have a state income tax so you don't necessarily need someone local. There's a lot of great CPAs on here and I'd recommend reaching out to a few to see who you connect well with. 

Responsiveness to your residents (who are paying down your mortgage). Network aggressively to find the best people in the industry in your local market. Read books and listen to podcasts. 

I would probably house hack every year for the next 5-10 years. If you can purchase properties above and beyond that, then that's great. But that should hopefully afford some financial freedom assuming you buy the property right 

When you purchase a house hack, you will want to figure out the split between rental (deductible) and personal. The way to do this is by looking at the number of bedrooms or square footage, whichever is most advantageous. 

example: you have 10 total bedrooms. You occupy 2. Common expenses such as mortgage interest, insurance, taxes, etc are 80% deductible expenses against rental income. The remaining 20% are non-deductible except taxes and interest (which may be itemized on schedule A) 

I would definitely say to house hack if you could. Depending on the market and loan terms, you can 5x your buying power. If you have an investor loan, you're likely putting down 25% plus closing costs (so a max purchase price of $120k) vs 5% down (max purchase price of $480k). That said, I'd encourage you to have reserves of at least $5-10k per property. 

There are a lot of great real estate CPAs on here. You'll want to be guided on the transaction in terms of documentation needed. With something as big as the short term rental loophole, you want to make sure documentation is buttoned up and you know the tax consequences at the outset

There are a lot of great real estate CPAs on here. You'll want to be guided on the transaction in terms of documentation needed. With something as big as the short term rental loophole, you want to make sure documentation is buttoned up and you know the tax consequences at the outset. 

Welcome! I'd recommend listening to the straight up Chicago investor and attend local meetups - there's a ton of great people to meet. 

You will find everyone you're looking for between the podcast, BP, and meetups! 

Happy to connect as well. Best of luck!