All Forum Posts by: Aaron Zimmerman

Great information. This is all things my wife and I will focusing on in the next year! I appreciate your insights. 

Pavan - great questions. The find a tax pro feature does work well from my experience on the other side. There's been a lot of great conversations had. 

What I'd say would be a good starting point is going forward with putting in some basic information and who you pair with. Then, you could reach out to a few of them and see who you like. 

I would also look at the forums for who people recommended for their CPAs. Another great option is asking local investors who they use for their CPA. 

All of the above will increase your likelihood of success of finding your next long term cpa. 

I can't speak to the local market but can speak to house hacking. It's one of the best financial decisions you can make assuming you buy the property right. You learn so much about landlording, you're ideally saving money on rent, and building equity. 

Going to networking events to meet other investors. I've gotten many of my contacts for tradespeople, lenders, etc from fellow investors. 

Buying a short term rental can be a great idea. However, it gets Tricky very quick when you add in multi-member LLCs that have their own tax filings, having another partner where you need to make sure you have more hours than them (for material participation), and additional headaches that come with partnerships.

Id recommend going through with an STR on your own first and then you can combine activities if you own with a partner. I'd also make sure this is a good investment for you and that you also want to be in the hospitality business.

I agree with the approach being sound assuming your plan documents allow for rollovers (which they should - but just make sure). 

As for the condo, whats the rationale for putting this into the solo 401(k)? Or am I misinterpreting the post? 

@Stephen Nelson beat me to it . 15-30% of the building basis is generally a good figure to estimate off of. However, one key distinction is you have to separate building from land so the portion that is land is not depreciable. 

Ben - welcome! If you're interested in coming to Chicago, there's a lot of great meetups. Chicago multifamily club, straight up Chicago investor sometimes puts on meetups, Windy City REI, etc. if interested in Chicago, I'd recommend listening to the straight up Chicago investor podcast as there's great resources for the city or suburbs.

Notes are valued by more than others for the following reasons: 

1. predictability of cash flow - your borrower ideally is going to pay you each month. 

2. good returns. If you need 5-10% return on your money for it to Continue generating, then notes offer an attractive spot. 

3. Position on the capital stack - it's usually 1st or 2nd line position and gets paid out before equity. 

4. if you do notes within an ira/roth Ira, you can have the money be tax deferred (if traditional Ira) and tax free which allows your money to compound quicker as you don't have the tax drag.