All Forum Posts by: Derrick Dill

Yeah, I saw the 1k/month on food. This basically means he is eating out everyday, every meal. spending over 10$/meal. If he got some groceries, he could cut down on his food to about 300$/month. 350$ on his car means he is living beyond his means as well imo. I have 6 figure salary I have a lease of 150$/month for a 2017 Corolla.

This man in your example is simply living beyond his financial means.

That is what he is proposing already, it is just the outline of his tax plan and could change. As of now, property tax deductions will be eliminated:

"Here's a rundown of the itemized deductions this plan would cut:

• Deductible state and local taxes: Currently, individuals are allowed to deduct theirstate and local taxes from their federal tax payments. This includes:
• • : Allows deductions of state and local taxes on items like a boat or car.
  • : Allows deductions of state and local taxes on the "value of real property."
  • Income taxes: Allows deductions of taxes on wages and other income paid to the state or local government.
  • Sales taxes: Can deduct sales taxes paid instead of income taxes. This is mostly used in stats without a state-level income tax like Texas.
• Gambling losses: Losses due to legal gambling can be deducted currently, as long as they are itemized.
• Interest expense: Interest paid on a debt, such as a student loan or mortgage, can be currently deducted. You cannot deduct interest on a personal car loan or credit card debt.
• Union and/or Club expenses: If membership in a union, professional society, or chamber of commerce "helps you do your job," the membership fee can be deducted.
• Moving expenses: If you moved for a new job, the cost of moving can be deducted if itemized.
• Miscellaneous expenses: If an expense on the Internal Revenue Service's list, including tax preparation fees and unreimbursed employee expenses, accounts for more than 2% of a filers gross income, it can be deducted.

The Trump outline is not a finalized plan, and the White House said they could change the plan as they work with Congress, so it is not a guarantee if these deductions will ultimately be"

Reference: 

http://www.businessinsider.com/trump-tax-cut-plan-eliminated-itemized-tax-deductions-2017-4

All itemized deductions except mortgage interest and charitable contributions will be eliminated. State and local tax deductions eliminated, no property tax deductions. This will effect landlords in states with high property taxes like NY and California negatively. 

You should get a job there first, FHA loan, live in it for the easiest, most cost-effective way IMO.

There are two main ways of thinking, Kiyosaki basically says to leverage good debt (mortgages), and Ramsay says to pay off all debt and pay in cash. People have got rich with both lines of thinking, but I'm in the Kiyosaki boat. Mortgage interest rates are still at historical lows and mortgage interest is tax deductible. My 2 cents.

Brendon,

I think you can ease up on a couple of requirements. Post 1990 is the first one that comes to mind, not sure why you want, there are great properties built in 1970-80 and older still.

I got started with a duplex here in California, one tenant rents for 1700, roommate rents for 700, for a total of 2400$, the mortgage impound account that includes everything is ~2800$. I don't cash flow, or live for free, but 400$/mo to own a duplex in California isn't half bad.

I've raised rent on my tenant 100$/year every year so far btw, and it's appreciated significantly.

I think you should continue your pursuit and continue to save.

Christina,

Unfortunately, all that is available is speculation on his tax reform. They'll be formally releasing it on Wednesday. It would be most appropriate to discuss it when his proposals are concrete instead of speculation.

You can withdraw all of your CONTRIBUTIONS at any time without any penalty or tax. 

When I first started I listened to the BP podcasts. The one's that I was interested in. There are ones' specifically for newbies that tell their story of how they did it. Then if you have any questions, simply search in the search box for what you want to learn about or google it.

Andrew,

I was born and raised in Southern California and found myself in the same dilemma as you a few years ago. I ended up going with an FHA loan on a duplex (2bd1ba/2bd1ba) for 440k in LA county (not the greatest area, but I walk to work). All-in the down payment with closing costs and what-not was 26k (3.5%). My monthly mortgage is 2800$ (including PMI, property tax, insurance etc.), I refinanced it down to 25 year loan as well. My tenant pays 1700$/mo and I've been raising rent 100$/month every year. I have a roommate who pays 700$/month. So my tenants pay 2400$ of the 2800$, I pay the remaining 400$ to own my duplex. It doesn't cash flow, but I pay less than my roommate or my tenant does to own it.

Also the tax benefits are huge as I get the tax benefits of owning a home and owning a rental (mortgage interest, property tax, half of utilities, depreciation etc.)

After I purchased this property, I went the turn-key route and bought out-of-state. I purchased my first property in Kansas city, MO. It currently rents for 1300$, my mortgage impound account is for 600$.

My second investment property I just bought at the beginning of this year in Ohio in a B class area. I just received leases today actually, totaling 1650$, the mortgage impound account is for 800$.

Hope I shed some light on your conundrum.