All Forum Posts by: Alex Garcia

Quote from @Rocky V.:

I have several sub2 deals in my buy and hold portfolio but have only dealt with big banks.  I do notify each bank that I am now the legal owner of property and have not had any issues.  If the numbers work do the deal.  If the bank calls the note due you can deed it back to owner or try and refi.  You may also try to assume the loan via qualifying if current note has that option.

 Do you call the bank before the transaction? Do you still get the title on your name?

@Jennifer Irwin did you ended up getting that property?

Hi guys, I realize this thread is old but it is exactly the kind of conversation I was looking for. Owner financing in TX, specifically San Antonio!

On the other hand if I buy an wrap or other type of owner financed property, how am I protected from a potential foreclosure on the seller?
My questions is, let's say something bad happen on the sellers life say divorce, accident, bankruptcy anything like that and while I keep posting my monthly payments to the seller the payments from the seller to the lender stop.

Do I have any recourse at that point if the lender decides to foreclose the property due to seller's default?

How about property hunting, are we allowed to deduct those expenses? Say I want to buy a property to operate it as a STR (with material participation avg < 7days stay).

If I travel to the beach to see some properties I am interested in, am I allowed to deduct the travel, stay, meals as expenses? Or are expenses allowed only after you buy the property? At the moment I only have a LTR.

I currently have a LTR SFR property and I am looking to buy another property to operate as a STR, I want to operate this STR with a max stay of 7 days and materially participate to be able to use depreciation agains my W2 taxes.

My question is this: As a real state investor either LTR or STR, if I travel say to the beach to look at properties that I might be interested in buying, do I get to deduct travel, stay, meal, gas/miles, etc expenses?  Can I do this for LTR/STR? Does it matter which kinds of rentals I am doing?

Thank you in advance!

A question I have about deductions for STR, say I am operating an active STR (average 7 days stay or less, with material participation and not offering any sub services).

If I travel to the beach to checkout properties am I interested in buying to operate as a STR, can I deduct the cost of travel, stay, meals, gas, etc?

What are you thoughts on STRs condo v SFH or Townhome in the San Antonio area? Do you think condos will be harder to book thank SFH, duplexes or townhomes?

I am thinking of buying a condo to operate as a STR in the San Antonio metro area but most listings I saw on airbnb are SFH or duplexes.

Thank you @Greg O'Brien

I found this one, not sure if is the one you are talking about but it specifically says that not because a rental is considered active it means that it is subject to Self Employment tax: Memo 202151005

Thank you so much @Greg O'Brien, I just bookmarked this thread, I stayed up until 2am last night trying to find answers to this, confused by different professional opinions and IRS publications.

I'm trying to use STRs (rented out 7 days or less with no substantial services provided in which I materially participate) to reduce my W2 liabilities and my biggest concern was if doing this will trigger Self Employment taxes.

If I understood correctly, in this situation I can use depreciation losses as active against other active income (which is what I want). I am still confused on weather I should report this on schedule E and still use the losses agains other active income or if I should report the losses on schedule C and even though it is schedule C not pay self-employment taxes (since I don't offer substantial services).

Quote from @Natalie Kolodij:

There won't be excess loss leftover for year 2 most likely- 

Having it be non-passive removes the loss limit. 

So if you use cost seg + bonus to create a $50k loss year 1, you get a write off aginast your income that year in full. 

Year two you can convert it to a LTR without any type of"pay back" or such

Thank you so much for your answer, follow-up question:

if I'm running a STR with average stay of 7 days or less where no substantial services are offered and it generates loses (that I want to use to offset my w2 income)

Are these losses reported on schedule E or C? And do I have to pay self employment taxes?

For this part the info I have been able to find is very mixed, some say schedule C and you have to pay self employment, some say C and not self employment, some say schedule E is the right place to put it.