All Forum Posts by: Aaron Zimmerman

It depends What you're looking to achieve. In my opinion, the best use of retirement funds is to do real estate notes and earn a steady return. The reason why is because you can still net a good return and otherwise if you were to do real estate notes normally, this is taxed as interest.

Investing in real estate deals in certain retirement accounts brings about many complexities including UDFI. This ultimately reduces your return on an otherwise tax efficient asset.

I echo the sentiment of not letting the tax tail wag the investment dog. You want to buy a property for its fundamentals and then the tax benefits are worth it . 

You would need to elaborate more on your situation to see if you can use the losses against active income. If you make too much and are not a real estate professional or in short term rentals, you won't be able to deduct the losses (the losses will accumulate for later use). 

Hi@Diego Villasenor! Welcome to Chicago and congrats on getting the property in Pilsen under contract. Great area. 

I would recommend getting involved in local meetups and listening to the straight up Chicago investor podcast. There's some even on the straight up Chicago investor website. 

as for the mindset of purchasing deals, I'd make sure each property you house hack cash flows after leaving. I would look to acquire as much as possible so long as the property cash flows after you leave and it reduces your housing expense. I wouldn't play the rate game as who knows when/if rates will drop.@Dave Meyer had a great podcast recently about the future of rates and his concerns with the US debt that I completely resonate with. Try to lock in that rate for 30 years if possible. 

@Ladarius Robinson - congrats on your first renter! Very exciting. I would take a look at schedule e on the 1040 for all the common expense items. I also have a standard spreadsheet template. Feel free to pm and I'd be happy to provide

Congrats on the property. Seems like a good deal once you deal with the work that will need to be done! Keep going as long as you can with this strategy. I have a client that has done heavy value add and it's paid off nicely for him. 

I would not recommend the property if you're having a $20k operating loss once stabilized. Ideally you're able to get some return there with cash flow, even if modest in year 1/year 2. 

are you saying that you'll lose $20k per year once stabilized?

Save as much as possible

go to local meetups and meet other investors. Try to add value to them. 

continue to self educate and read as many books on real estate as you can. 

you're on the right path. Keep going!

Yes - check your lease terms and local laws to see if you can keep some of the deposit. Bottom line is that you probably want to rent out to new tenants, which is not ideal but better than tenants that want to leave after 13 months. Might be a blessing in a disguise. 

Youcan always appeal your taxes. If they're assessed low, you might want to leave as is. I don't believe taxes have anything to do with insurance. 

LLC or not to LLC is a personal question. Do you have other assets? Will the bank allow you to transfer to a single member LLC? Lots of considerations. I'd encourage you to read on the BP forums as there's significant discussion on this

Low inventory all the way around leading to these price gains. Hopefully we can get some more housing built but I'm not optimistic. 

Thanks for sharing@Henry Lazerow and@Paul De Luca. Very informative.

It depends. Are you trying to shift liabilities to your management company in the event you get sued? If yes, it might be worth it. 

In effect, you're moving money out of one pocket and putting it into another so there's no real tax change unless you're paying yourself more in w-2 from your s corp (since you're making more money). It really Depends on what your goals are with this transaction.