All Forum Posts by: Basit Siddiqi

Congrats! It sounds like you brought a lot of properties that appreciated well!

Working a full-time job and self managing real estate doesn't sound easy. I think you should enjoy some time outside of work / real estate.
Best of luck!

There are times when a cost segregation study makes sense and other times when it doesn't.

If your investments are passive and you can't utilize the added depreciation, I would not suggest getting it.

If your real estate activities are considered active or you sold a property where there is substantial gain, I would consider getting the cost segregation study.

Best of luck to you!

The issue is that a mortgage payment has several components to it(Principal paydown, mortgage interest, payments into escrow). 

Furthermore, you have to account for when payments are made out of the escrow balance such as when real estate taxes or insurance are paid.

The best solution that I found is finding the details as the end of the year such as interest paid, end of year principal balance, escrow balance, taxes paid, insurance paid.

If you have all that, you can do a year end journal entry to reconcile everything.

Best of luck!

It is often better to invest in a market that you have a competitive advantage(one where you know more than others).

Think of a market that you grew up in, west to college, take vacations in often or visit friends / family.

You will likely know the neighborhoods / streets that are expanding.

Best of luck to you!

How many properties did you have at your peak and type of properties did you have(SFH, Multi's) and in what neighborhood class?

I am in a similar boat as you. I accumulated about 35 properties over a decade with partners. I am trying to figure out my next step.

My properties are mostly Singles with a couple of duplexes in C / D class neighborhoods. 
The issue is that my market tanked for 1-2 years so I lost a lot of my net worth. I hope it rebounds and then I can sell it into apartments in B class neighborhoods and invest the rest in stocks.

Best of luck to you

Marlando, BP users will be better able to help you if you mentioned what type of property you are looking to invest in(location, price point, condition of property you can handle).

Also, what type of assistance are you looking for - Knowledge, professionals, money?

Online platforms like BP are great but sometimes it is more helpful by going to a local networking event.

I assume BLOC is 'Business Line of Credit'?
I personally don't have much experience with business line of credits so I don't know what the typical interest rate, term, collateral will be.

I am making an assumption but I think the HELOC will have a lower interest rate since the bank has a physical asset as collateral. I would think that to be the only difference.

You would still follow the interest tracing rules to determine deductibility.

If you have or looking to invest in a STR, have a conversation with your accountant to see ways that you can classify the property as active instead of passive.

This will allow you to have the real estate losses offset the other forms of income such as wages, interest, dividends, etc.

This can drastically reduce your taxes in a given year

You will want to see if you can acquiure a property and utilize the passive losses from the property to offset the gain from the property sold.

Best of luck!

Yes, if you acquire a property / furnishings with a HELOC, the HELOC interest will be potentially deductible.

Best of luck!