All Forum Posts by: Adrian Chu

Your rental income will be taxable and here are some expenses you would be able to deduct on the rental portion of the property.  

• Advertising
• Auto and travel
• Cleaning and maintenance
• Commissions
• Insurance (does not include PMI)
• Legal and other professional fees
• Management fees (rental agencies and property management companies)
• Mortgage interest paid to banks
• Other interest
• Repairs
• Suppliers
• Taxes
• Utilities
• Depreciation expense or depletion

The biggest is depreciation, which isn't an actual out of pocket expense but more of an invisible expense. In this case, you won't be cash flowing much and if your income is otherwise higher and if you aren't considered a real estate professional for tax purposes, then the allowable deductions for losses from real estate will phase out quite quickly. So not too much benefit there.

I would not look at this as an investment. This would be your own home, with part of your mortgage being subsidized by the tenant.  

First Tech or BECU

In Seattle, you have to be creative if you want to maximize cash flow.  Room rentals, short term rentals. They are more active than managing regular long term rentals.  There are also house+lot or future development plays as well. 

Surprisingly, the turnkey new construction townhouse works quite well for rentals (and short term rental depending on the area) if you want something easy.

It doesn't make sense to bet solely on appreciation, but I try go for a balance of both appreciation and cash flow.

ADUs are not too common in the Eastside. They are more common in Seattle. 

Also many cities that have ADUs prohibit you from renting out both units. 

As far as I know, Seattle and Tacoma are the only two cities in the area that let you rent out both. 

Like HOA putting a lien for non-payment of HOA dues?

Congrats!!

Jay, do you have any recommendations for OR? I just passed my PB exam.

Horizon Real Estate is the firm I am licensed with.

 Which firm are you with? My firm allows it.