All Forum Posts by: Aaron Zimmerman

The main negatives are UDFI (unrelated debt financing income), but that applies when there’s income. 

In addition, real estate is already tax advantaged, so you’re losing the tax advantages of owning real estate.

Personally, I think real estate notes are better suited for self directed IRAs personally because you can get decent returns and notes not held in IRA is not tax advantaged.

You could sell the property at the beginning of the year and buy a property/place that property in service (and do a cost segregation study in the same year). 

I would recommend looking through in DSCR loans.

You’ve come to the right place!

I’d look at listening to podcasts such as BP, BP money, straight up Chicago investor podcast.

While in school and even now, I’d focus on working as much as possible to make sure you’re in a good position to have a down payment as soon as possible.i’d try to understand what a good deal is (underwriting), and also lending. 

Happy to be a resource! I house hacked my property in Chicago and think it’s worthwhile. 

I think QBO or Stessa can handle your real estate needs. 

For your Montgomery property, depending on income level, it could be beneficial.

For your upcoming STR, I would make sure you get a professional on your team that really knows the rules inside and out. There's some nuances there that can blow up the tax benefits.

Andres - congratulations on the purchase. I would encourage you to look through the forums, find a few CPAs that regularly comment, and reach out/interview. With having various businesses, there should be opportunities to optimize tax there as well!

May I ask a couple questions:

1. Are the properties within the S Corp? Or is it just Management?

2. What was the initial purpose of creating the S Corp? 

The STR loophole can be very valuable but it really comes down to the implementation including proper entity structuring.

There are quite a few real estate accountants on here and I’d recommend reaching out to a few to make sure you get someone you like. 

There are a lot of RE accountants on here so I’d recommend reviewing a few profiles and their comments and interview a couple. 

I would also make sure your CPA can help with getting your basis correct. This is very important for calculating depreciation.

 Yes - you can do both in the same year. And you can group the two with -9 election. Same rules of course.

There are a lot of real estate CPAs here. My recommendation is to interview a few and see who you jive with. 

As for your vision, with tax calls, I’d recommend discussing these with your cpa and they should be able to develop an actionable plan for you to follow.