All Forum Posts by: Darrell Bowman

Great input! I appreciate it guys! 

Hi, I wanted to pose a question about whether you would choose to invest in a vacation property or a small (10-20) unit apartment complex? Vacation rental would be a condo complex that takes care of all the maintenance and bookings and takes 40% off the top. 

The way I see it, both investments will:

• pay down your debt service
• allow for depreciation (not sure which one offers the most depreciation for tax purposes)
• allow for re-fi and cash out to invest in additional properties

Vacation rental benefits are that my family can use it throughout the year for vacation and 1 unit to manage (at first). Probably less stress than dealing with tenants. 

Multi-Family apartment (10-20 unit) - If I raise the rents, I just increased my NOI x each door (10-20 in this scenario) which increases the value of the property. Unlike my vacation rental, I only increase the NOI, but not necessarily the value since the value is based on comps due to it being a residential loan.

Am I missing anything? Is there a better tax advantage with depreciate in multi-family vs a vacation rental? 

I have been running numbers on both and the vacation rental makes about the same, after debt service,   as the multi-family (~$2K-$3K per month). My thought is if I make the same, but I can stay at my vacation rental and my family can use it, then wouldn't you choose the vacation rental investment?

Value you input! 

Thanks,

Darrell

Great 4 bed/2.5 bath for immediate sale! Currently rented for $1,275/mo, however evicting current renter within a week. The price is firm because it's $20K-$35K below market value. Other 4bed/2.5 baths in this same neighborhood have sold between $160K-$175K. Any money I put into the property after eviction next week, I will have to increase the price. Get it now before it goes up. Will want to close in 2 weeks. 

Hey Harlan! Welcome! I just joined BP tonight myself. I work full time too as a National Account Manager for a distribution company, but looking to replace my income and work on Real Estate investing full time. Looking for my first Deal!