All Forum Posts by: Aaron Zimmerman

This is a crazy ordinance all the way around. Thank you for posting and sharing your thoughts. I hope they don’t expand the pilot area to others in the city. Thank you to everyone that commented as well. Very informative!

The biggest thing with house hacking is making sure the property breaks even when you leave after all expenses. Similar to what others said, it’s probably not realistic with current rates on most houses to live for free. The key is stack the savings. 

I would you to think long term as far as rent appreciation, insurance (which keeps ticking much higher each year), and property taxes (which may get reassessed when you purchase the property). 

Inherited tenants - vet them and look at previous records

Make sure the property cash flows after you move out

Build your team: handyman, hvac, plumbing, etc. this will take some time.

As stated by a number of fellow accountants, there are a ton on here. I’d recommend checking out their profiles and previous comments. See which ones you like and interview 2-4 and work with a professional. 

This is great! It hits the nail on the head. Only thing I’d add is between step 2 and step 3, talk with a CPA before doing a cost segregation study. An investor needs to be 100% sure they’ve jumped through all the hoops necessary.

 I would agree that RE prof status is hard to achieve with a limited number of properties. There’d need to be a lot of rehab work/managing that would require you to put in that many hours.

From a financial perspective, it seems like the highest leverage way to keep buying more properties is leveraging your W-2’s and then being work optional.
Have you enjoyed leaving your W-2? Is there a way to perhaps work part time? I think overall life satisfaction is very important so ultimately have to do what’s best for you. Biggest thing is not letting the tax tail wag the dog. 

@Jonathan Klemm - thanks for the shoutout!

This is a very nuanced conversation. The biggest thing I’d say is to not let the tax tail wag the dog. If your highest leverage activity is earning money through a w-2, then stick with it. 

When you make over $150k MAGI, you can’t take losses against active income. However, those losses do roll forward each year until the property is sold. 
I’d recommend the straight up Chicago investor podcast, tax free wealth, and amanda Han’s tax books if you want to read more about it. 

 Thank you! I’m in the exploratory phase right now and will reach out with any questions! Thank you for being a resource!

Thank you very much for commenting.

Kevin- to answer your questions:

1. I pay for a portion of the costs for heating and cooling.
2. For the windows, I’ve replaced the majority of the windows with double pane. Doors have probably not been replaced in a while.

3. There is a dormered attic, so I believe the answer to your questions are yes. Thank you for the tip. I will think about that.

Hey everyone! My rental units have poor insulation in a building I own and I’m trying to evaluate how to improve and the best way to do so.

I’ve heard that putting spray foam insulation is an option. My understanding is that it goes through the siding.

I have the following questions:

1. Has anyone done this before?
2. If so, what’s your experience been?
3. what companies did you look at?
4. What company did you go with?
5. What is the approximate cost?
6. Is there a better way to improve insulation. If yes, please elaborate

Thank you in advance!