All Forum Posts by: Ana Garcia

Hi Gheorghe,

Feel free to contact me to chat about your business and find out how we may be able to help you. We are located in Miami, FL.

I look forward to connecting with you,

Ana B. Garcia, CPA, MSA, CTP

@Tyler Neison Generally, both you and your dad would report the income or loss from the rental, based on the ownership percentage. One thing to note is that, in order to take losses on your taxses, your income must not exceed a certain threshold, and if it does exceed the threshold, you and your dad may still deduct the losses if you qualify as Real Estate Professionals (there are other rules for this). Losses that are not deducted can be carried forward indefinitely to years when you report a profit. 

Keep in mind that you and your dad would report the income or loss from the property based on your ownership %, but your dad may take losses and you may not. What happens at the personal level depends on each of your personal tax situations.

Hope this helps.

I would leave RE investing if I no longer enjoyed it, or was no longer profiting, or the tax laws changed drastically and unfavorably (this will likely not happen in this country). If any of the above took place, I would probably exit out of the industry.

@Drew Sygit. Agree! Instead of selling your primary, use the equity to buy your next STR (if you enjoy that business model). That way you maintain your long term rental.

@Marco Egurvide. As far as the upkeep, I find that vacation rentals are better kept and maintained than long term rentals. This is because they are constantly cleaned and guests have to take care of them or guests get a bad review.

@Ethan M. Try offering what your analysis says would result in zero profit...at a minimum and if you think you would enjoy it with your family. $25k is a very large loss. In my experience, you need to be conservative when investing because everything increases (insurance, real estate taxes, etc.) and you could also have surprises (roof needs replacement, floor is collapsing, etc.). These are major cash outflows.

Good luck!

@Matthew Seabolt I am pro debt because it allows us to purchase more properties and, as a result, have more cash flow. Depending on how much equity your properties have, you could use it as downpayment for a multifamily.

Good luck!

@Shannon Glanton, Just jump on it! Start small so it is more manageable. That is how I started - with an apartment that I bought with my sister. I would also suggest that you buy your first property in your town, especially if you have a full time job, that way you can be involved and learn the business.

If you are single, or even married without kids, you can do short term rental (if you think that is something you may like - watch some videos about the pros and cons). Either way. Make sure to run the numbers as if you were to do long term rent.

Good luck and enjoy the ride!

Starting a family while investing! Being a mom is a full time job. My advice to young women is START NOW so you are set when you decide to raise a family.

Ana B. Garcia CPA

@Yeshua Williams, Congrats on your investment and your positive cashflow. You can take your cashflow and use it however you want. No need for a 1099 or a W2. The way you offset your income is through the tax strategies available to real estate investors, which include depreciation, car expenses, clothing, cellphone, meals, computer, Internet, home office, travel, etc.

All these costs are used in your business. You have to use your cell to call the handyman or the bank, you go out to eat with your wife or partner to discuss business strategies, you go to events and buy clothes to wear, you use your car to go to see your accountant, or the property. And so on.

Make sure you have an accountant who knows about real estate taxation. As you grow your business, you will want to use more advanced strategies that will save you tons of money.

All the best!