All Forum Posts by: Aaron Zimmerman

I would recommend checking out more lenders to see if you can get a better rate than 9.5%

Yes they are but you may need to get creative to get cash flow. You can try rent by the room as a first option and then perhaps move towards more active strategies such as medium and short term rentals to boost cash flow as needed. 

@Ryan Oder charitable giving, 401(k)'s, h.s.a.'s if w-2 employee only. If you have a business there's a lot more opportunities for planning there

1. key metrics : does the house hack save you money while living there? Does it cash flow upon leaving?

2. Mistakes - being too lenient with late paying residents. 

3. would choose quadplex all else being equal 

Speaking on the tax side, you need to rent the property out for an average stay of 7 days or less, materially participate (one of these and not use the property too much, if at all, for personal use. 

what I would say is if you can't buy the short term rentals there's other tax savings opportunities to consider. Never buy a deal solely for the tax savings

@Matt Rezac I would say that's the opportunity on a lot of buildings that don't have at market rents. I would encourage you to think about not just year 1 returns, but longer term. If you can get the units up to fair market rent over the course of 2-3 years while house hacking, the numbers can still make sense 

Totally agree with this approach of setting side reserves. Whether it be Taxes or property repairs, maintenance, capex, reserves are crucial to ensure your property stays afloat. 

Doing one on TurboTax is fine. I’d encourage you to make sure the basis of your property is done correctly as that impacts all future years of depreciation. I have seen so many mistakes over the years so definitely be careful.

How long have you owned the business? Perhaps there's a way to make the insurance business passive. I'd look at the material participation tests to see if you qualify for any. If you don't, then you would be considered passive. In the event of an audit, you'd need to prove your passive.

Assuming you're passive, then you can buy long term or medium term rentals and do a cost segregation study

@Mary Jay exactly. There'd still be some income tax unless you find ways to offset that income. With a Roth conversion, you're saying to the government, tax me now, but now I won't be paying any taxes later