All Forum Posts by: Account Closed

As a Hurricane Katrina survivor on the MS Gulf Coast (we got it way worse than NOLA, regardless of what CNN tells you), I can honestly say that you do not want to buy Fema trailers. They are junk, some are contaminated as mentioned above, and they are more like crappy travel trailers.

Stay away unless you like losing money and sanity.

Thanks for the reply Brian!

Good suggestions Scott. That's what I feared would happen. Maybe a poll of some sort would be best suited for this.

?? Maintenance expenses are deducted as Maintenance/Repair the year they are taken. You only depreciate capital improvements....

For some this may be a "hush-hush" topic, but for others it may not.

I'm looking to hear everyone who has been landlording for a few years to respond to this to help the community get a better guage on the REALITY of income and growth potential with landlording. It seems everyone "knows someone" or heard a guru spew figures out but I want to see it from the source.

Questions:
1. How long have you been a buy and hold investor

2. Do you primarily finance or buy cash? If finance, what % of the purchase price do you shoot for.

3. What is your monthly (or annual) income net after expenses and taxes? I'm not talking appreciation, etc. I'm talking every month, after you pay all expenses related to your investing business, how large of a check could you write.

4. How many properties do you have? Are they primarily residential, commercial, or a combo?

If you're uncomfortable answering that, that is fine. I may not get any answers but thats ok! You can ballpark the income if you want (4 figs, 5 figs, 6 figs, 7 figs, etc) to be more discreet.

Thanks!

Mickey,

I'm just east of you on the MS Gulf Coast in the Biloxi/Ocean Springs area. I visit NOLA often.

Daniel

I would seek an attorney's advice for how much equity to keep in each entity. You say you own the properties free and clear, so you have plenty to lose.

I will say that you should not operate the property maintenance/handyman services under the same entity.

$300k income from assets managed by someone else with a paid off primary residence would allow me to live like a king down here on the Mississippi Gulf Coast.

This is not a post to support or bash the Marginal tax rate system. But rather a simple explanation to common errors we hear on the news, in conversations, etc.

Many people believe that if you earn $1 more than the next tax bracket that the entire amount of income shifts into that bracket. I've even heard reporters mention things like this.

When I explain the marginal tax system to people I show them 4 cups. One cup has 10%, one 15%, one 25%, and one 35% on them. I then take a Pitcher full of water and the pitcher is labeled "taxable income."

From here I pour the "income" into the 10% cup until it is full, then fill up the 15%, then part of the 25% cup until the pitcher is empty.

I believe this is a good way to explain how it works, because how many times have you heard "that pushed me into the next tax bracket!!!"

I'm sure most of you here understand this since BP is a pretty savvy group, but it could be a good, simple way to explain it to our misguided colleagues in the future.

Take Care,

Technically, appliances are 5 year MACRS property ;). However, if its under $500, I'd expense it.