All Forum Posts by: Ron Trinh

@James M. - Have you considered a 1031 exchange? You could take that equity and put it to more efficient use, tax deferred. @Michael Swan used it to convert his appreciated San Diego condos to apartment complexes in a market that made more sense cashflow wise.

Higher returns and less taxes sound good to me!

I recommend having a chat with a real estate tax CPA.

@Ray Li

Offsetting losses from your Sch E against other types of income would depend on your status as a real estate pro, active participation, or material participation with regards to your rentals. In general, if you had net losses from your schedule E rentals (and were not a RE pro), they would be limited to offsetting other passive income only. As sch C income is "active" trade or business income and falls into a separate bucket, you would not generally be able to offset sch C income with your Sch E losses.

The passive actively loss rules generally do not apply to real estate professionals. There's also a $25K passive activity loss rule you can look into to see if it may apply to you.

Looks like your original question was answered but if you want to dive deeper, I would consult a tax professional.

@Andrew Richmond - Welcome to BP! Like you and @Jeremiah Harrington, I am also from San Diego looking to invest out of state. Hopefully will bump into you at future meetups!

@Nathan Brooks - Let's talk! 

@Alina Vengerov Hi Alina, I have not locked in a rate yet (still shopping for a place), but yes BBVA's professional mortgage offers fixed rate mortgages. If you want, I can connect you to the mortgage officer I am working with and he can help answer any questions you might have. Feel free to PM me.

I'll be there!

Has anyone had experience investing out in Saint Francis, WI or South Milwaukee, WI? They may be great places to invest too.

Did some research into these properties and there seem to be quite a few SFR and MFR around the 100k range. Seems to be a healthy local economy with 3% unemployment to boot from looking at census data. Also, crime websites show hardly any criminal activity there, so seems pretty safe. Rents seem to be around the 1% range. Would love to connect with anyone investing or local to these markets.

And whoever you use as a CPA, have them look into the new Section 199A deduction too! 

Just an update for everyone that responded here as I have dug in quite deep and am working with a mortgage broker at the moment. BBVA Compass does offer a professional mortgage for Doctors, Attorneys, and CPAs. They can do up to a 95% LTV, no PMI and no reserve requirement. I am likely to use them when purchasing my first residence early next year in 2019.

Yup, a pro could make sure you start off on the right foot and stay there all the way until year 3 when you plan to exit. Wish you the best!

@Adam L. - I would just like to add that it is important to also track your tax basis and tax capital for both LLCs. This is where a competent CPA could help you out. Tracking the tax basis and tax capital will come in handy in determining the taxability of your distributions and aid in gain/(loss) computations on the day you and your friends want to exit the deal.