All Forum Posts by: Dan DiFilippo

@Kirsten F.

Not an accountant, but it sounds like you're disqualifying yourself from benefiting from the primary residence capital gains tax exemption by attempting this ridiculous fraud scheme.

Real estate might not be the asset class for you.

@Ginger Mc Gee there is literally an entire profession that exists so that you don't have to have this problem...

@Pam Wils welcome to the profession. Second best advice I have for you is fake it till you make it.

The best advice is stay as far away from eXp as possible. It's a failure-oriented organization in which you are the product. They are the worst part of the real estate industry.

Source: I was affiliated with them. They refused to do anything when I produced clear evidence of another *internal* agent doctoring/misrepresentating documents in an attempt to defraud me.

@Dan DiFilippo well, not rents. Rent to price.

@Mark Jones don't worry to much about it.

If a year was 18 months long instead of 12, it'd be the .66% rule.

If various economic conditions were different, it'd be some other rule.

There's no simple direct mathematic relationship. It's just a coincidence that a "good" rent amount for a year is about 12% of a home's value.

Don't wed yourself to the rule. Lately, margin compressions, high earnings multiples, and low risk-free rates have been driving rents down.

@Alicia Marks popping in here to briefly mansplain to everyone the reality of the situation.

I've never met a successful female investor who concerned herself with this question for more than about seven seconds.

@Genevieve Anderson Kamil's the man!

Reporting!  Yes, either Don-Carlos or myself will be happy to help you!  If you like, I have an excel calculator I drew up that a lot of my clients like.  My clients typically find it really enables them to get a grasp on expenses and cash-flow.

@Rick Martin SOFR's useless though.

Everyone prefers LIBOR, aka, the curve of particular death.

@Kay March good question.

It's not an exact science. And appraisals do the work of keeping markets somewhat price-stable.

But then there are some variables that are included that account for market direction. So, inventory available, price momentum, average time on market.

So there's some "baked-in" adjustments, then there's also the fact that appraisals are somewhat imprecise, meaning there's ability for drift which will usually move in the direction the market wants, and then the simple fact that if buyers push prices higher with cash increments, it wholly adjusts comps.