All Forum Posts by: Basit Siddiqi

Wholesaling is NOT investing.
Wholesaling is a business.

Wholesaling requires you to continuelly get new leads, sell contracts to buyers, repeat.
Once you stop getting leads or finding buyers, there is no more money coming in.

Sure, you can get food and automate certain things but it is a business.

In my opinion, you should look at what you do in your profession and see if you can moonlight some hours to make more money that will go towards the downpayment.

Best of luck

There are pros / cons of whatever way you go about it plus a lot of unknowns.

If your dad owns the place and it appreciates a lot and he decides to sell it, the gain can potentially be tax free which you wouldn't have the option for if it was a rental.

I personally wouldn't do business with family.
What if you own it and he rents it from you and you both have a disagreement on rent increases?

I personally would not work with a CPA to create an LLC.

You may potentially want an LLC Agreement / Operating agreement to go along with the formation of the LLC which a CPA is not capable of drafting.

Best of luck.

You might potentially be able to deduct the travel costs from CA to MA/NH/RI once you acquire the property.

You may want to work with a CPA who helps working with new investors to have a walk-through of what is deductible.

Did you tell the accountant that you were interest in owning a STR?
If you didn't, seems like a bad / inexperienced accountant to suggest such a thing.

In my opinion, its the same as telling someone to go to a trade school and get a new career.

A STR can help you lower your taxes but I would only do it if you were planning to purchase a STR.

A STR is a business, you are responsible for furnishing the house, responding to guests, providing a great stay and experience, etc

I saw a prior post where you mentioned having a STR in Texas.

you want to have a conversation with your accountant to see if it can be treated as an active property instead of passive.
If it can be, then there is a potential opportunity to offset the losses against other forms of income such as wages, interest and dividends.

You need to look at the credentials of the person offering the education and whether it is him offering the education or just one of his assistants.

The cost should also be reasonable, in my opinion.

If you are taking a class, not a personal 1v1, I don't understand why a class would cost more than $100 an hour.

If you are getting 1vs1 communication, I can then see it costing $300+

if the person does not have an visable experience, I would not consider paying for the experience.

I also question these investors being oversold on someone they don't need.
In my opinion, a person can retire by getting 10 homes backed by fannie mae / freddie mac loans.

The oversell to getting outside capital to get a large complex is likely being sold to investors who don't have / make a lot of money.

The number one benefit for a high income earner that invests in long-term investments is that the depreciation will shield your rental income from your effective tax rate.

if you are a high income earner, you are likely around the 35% federal tax bracket and another 5-10% tax bracket if you are in a state with a tax

Interest income will be taxed at potentially 45% + 3.8% net investment income tax
Dividend income will be taxed at potentially 30% + 3.8% net investment income tax
Rental income potentially at 0%

I think a lot of people get disappointed that their tax burden doesn't decrease.
It can potentially decrease but it will require proper planning along with some level of participation with the real estate.

Just a reminder when you invest in Ohio, is that the state requires the fling of locality returns in addition to the state return.

Make sure the accountant you are working with is aware of this.

The good thing about Florida is that the state does not have an individual income tax which does open up your search.

I saw a post you created in the past regarding doing a 1031 exchange, how did your prior accountant handle that? Were you able to defer all the tax from the sale of your exchanged property?