All Forum Posts by: Ashish Acharya

@Geoff Pope,

If your goal is long-term portfolio growth, keeping the Glendale home as a rental won’t add much since your payment almost matches local rents. You also don’t really need to worry about a 1031 here, since there isn’t a gain to roll over. What you might consider instead is whether turning it into a short-term rental could improve the cash flow. Acquiring new property is always expensive, so if a strategy pivot can make this one profitable, it’s worth exploring. If that still doesn’t work, selling and using the equity to invest in a stronger market could be the better move.

 @Theodor Chung For REP purposes, drive time can count toward your hours if driving from home to your “main office/principal place of business, but only if it’s directly related to your real estate activities.

For example:

• Driving to a rental property for management, repairs, showings, or inspections does count.

It’s important to log the time and purpose of each trip so you have records if the IRS ever questions your REP status.

.
.
.

This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

@Russ Chambers You’ve already gotten some great outlines here, so I’ll just add a little more. Since you’re carrying part of the loan, this is basically an installment sale, which means you can recognize the gain over time as you get paid instead of all at once and that can really help smooth out your tax hit.

With a 1031 Exchange, there is no need for an installment sale for tax reasons, as you are deferring the gain anyway.

In the installment sale, just remember the interest you receive is taxable, and any cash you take that doesn’t roll into a 1031 is considered “boot” and could be taxable too.

One creative angle some investors use is to pair an installment sale with bonus depreciation or a cost segregation study on the new property if you have extra basis for depreciation (assuming you already did cost seg on the old property).

Even if part of the gain from the old property gets taxed with or without an installment sale, you get fresh deductions on the replacement property to offset some of it. So instead of just worrying about your tax bill from the sale, think about matching your gain with new deductions — that’s where the real planning wins happen.

.
.
.

This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

@Aaron Phifer Congrats on taking the first step toward real estate investing! Since you’re looking at multifamily units and potentially new construction, there are a few tax considerations to keep in mind as you plan your strategy.

• Multifamily rentals: Owning 2–4 units can be a great way to start. Investors seem to find this route a lot easier than having a long list of Single-Family rentals. You’ll want to track rental income carefully and make sure to capture all eligible deductions—mortgage interest, property taxes, insurance, repairs, and depreciation. Depreciation, in particular, can significantly reduce taxable income over time.
• New construction on land: Buying land and building a property has different implications. Construction costs can often be capitalized and depreciated once the property is completed. Don't expect to get deduction right away. Be aware that the timing of expenses and how they’re treated for tax purposes can impact your cash flow. The upside is that you get to make it customized to how you want.
• House hacking: Since you plan to live in one unit, it's important to separate personal use from rental use for tax purposes. Only the portion of the property used as a rental is eligible for deductions like depreciation. If you are doing STR, the tax savings from cost seg can be significant.
• Market timing vs. tax planning: While market conditions in Vegas fluctuate, focusing on strategies that maximize your tax efficiency and cash flow can help you manage risk. A solid CPA can help you model different scenarios to see which investment structure works best for you.

Getting started with a team, including a CPA, lender, and real estate agent, can make navigating both the market and the tax side much smoother, especially as a first-time buyer.

.
.
.

This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

Hi @Karreta Thomas! It’s great to connect with someone else in Florida! Welcome to the world of real estate investing. Starting with wholesaling and planning to move into fix-and-flips and short-term rentals later is a great way to get hands-on experience while learning the ropes.

From a tax perspective, each strategy has its own considerations. Wholesaling is typically treated as ordinary income, so it’s taxed differently from rental income. Fix-and-flips are generally considered ordinary as well, which can have higher tax rates with self employment income.

Short-term rentals may allow you to take advantage of depreciation to offset your other RE income. That’s why it’s important to think about your tax plan early, make sure your strategy aligns with your current income, and keep clean, organized books from day one.

It is important to have a solid team, including a trusted lender, a good CPA, and a reliable real estate agent can make all the difference when you’re starting out. They shouldn’t just handle the transactions for you, they should also help guide and educate you through the process every step of the way.

One of the reasons I love real estate is how tight-knit and supportive the community is. Helping others as you learn is one of the best ways to grow as an investor, and you never know what connections it might lead to. I’m glad to see you plan on giving back, too. It really makes the community stronger.

Hi @Josh King,

Welcome to BiggerPockets! You're already in a great spot being on here. Kansas City is a great market with a lot of opportunities, and connecting with local investors there will be really helpful. You never know where one connection might lead. 

One of the biggest things I’ve learned starting out is how important it is to have a team you can trust—a good CPA, lender, and real estate agent. Find people who share your passion and are willing to help you learn along the way. The right team isn’t just there to close deals. They’re also a great source of guidance and real-world lessons.

Happy to connect!

And don’t feel like you need to have it all figured out right away. Most of us learned by taking that first step, making mistakes, and adjusting as we went. You’re already ahead of the game by asking questions and surrounding yourself with the right resources—keep doing that and you’ll build momentum faster than you think.

Also, one thing I’ve seen firsthand is that good bookkeeping and clean documentation make all the difference once you start juggling multiple businesses and properties. 

Keep learning and tracking your numbers, and this property can be a powerful stepping stone toward building your portfolio.

One more note: Clean books and organized records from the start make everything easier, whether you stick with TurboTax or work with a CPA down the line.