All Forum Posts by: Baha El Far

All,

I hope you are doing great.

I have an apartment 2bed/1 bath that I own and I am not sure if I should rent it out as a short-term rental/airbnb or long term. I heard the tax rates for short-term rentals are higher and more complicated. I am going to list a few details for both from a real estate agent that I trust and she will be my property manager. she has been in the short term rental market for over 8 years and is recommended by friends.


1) Short term rental income (1478$/month)

Furniture investment 6k$
90$/night
The average occupancy rate is 80% but could go as high as 98%.
the management fee is 20% of the income

Utilities and wifi fees are 250$

Income = 90 $/night x30 nights x 0.8 (occupancy rate) x 0.8 (management fees) – 250$ (utilities and wifi)

Income = 1478$/month


2. Long term rental (1000$ a month)

fairly high occupancy rate with a yearly lease/management fee is 5%

1000$/month



what do you recommend? can you highlight more on the tax of short term rental? any reference I could use to understand the tax benefits and how can I add deductible?

Thankss!!

All,

I hope you are doing great.

I have an apartment 2bed/1 bath that I own and I am not sure if I should rent it out as a short-term rental/airbnb or long term. I heard the tax rates for short-term rentals are higher and more complicated. I am going to list a few details for both from a real estate agent that I trust and she will be my property manager. she has been in the  short term rental market for over 8 years and recommended by friends. 


1) Short term rental income (1478$/month)

Furniture investment 6k$
90$/night
The average occupancy rate is 80% but could go as high as 98%.
the management fee is 20% of the income

Utilities and wifi fees are 250$

Income = 90 $/night x30 nights x 0.8 (occupancy rate) x 0.8 (management fees) – 250$ (utilities and wifi)

Income = 1478$/month


2. Long term rental (1000$ a month)

fairly high occupancy rate with a yearly lease/management fee is 5%

1000$/month



what do you recommend? can you highlight more on the tax of short term rental? any reference I could use to understand the tax benefits and how can I add deductible?

Thankss!! 

All,

hope you are doing great.

Need your smart advice here please. I can buy a rental property with a loan (130k$ including down payment). The rental property will build equity but not much profit. Rent of that house would be 1500$.

I have two options:

1. enough cash for down payment to take another loan for a second rental property. But I would still have mortgage of the first rental property that is being paid off by the house rent.

2. Pay off the loan in 2-3 years (doable I think). I Would have a cash flow by 1500$ for the first rental property after paying off the loan. Then, I could invest in other home.

Apparently I am not real estate and looking for your advice here. Is it better to go for multiple loans and rentals. Or just start with one and pay the loan off...

All,

hope you are doing great. 

Need your smart advice here please. I can buy a rental property with a loan (130k$ including down payment). The rental property will build equity but not much profit. Rent of that house would be 1500$. 

I have two options: 

1. enough cash for down payment to take another loan for a second rental property. But I would still have mortgage of the first rental property that is being paid off by the house rent.

2.  Pay off the loan in 2-3 years (doable I think). I Would have a cash flow by 1500$ for the first rental property after paying off the loan. Then, I could invest in other home.

Apparently I am not real estate and looking for your advice here. Is it better to go for multiple loans and rentals. Or just start with one and pay the loan off...

Thank you. Already messaged you. Appreciate your advice.

Hello All,

nice to meet you all. That's my first day in this community. I hope I find the advice I am looking for. I am aware it might be an odd question.

I am interested in real estate investing but I am not sure if I could make it and that's why I am reaching out for help. For religious reasons, I don't want to take loans as it's forbidden in my religion (Islam). In particular, loans with interest. I am not rich neither to start alone.

Not sure, is there a way to invest without taking loans? Any advice on how hard will it be taking that fact into consideration? Any successful muslim real estate there could advise here on how he/she handled it?

Thank you all.