All Forum Posts by: Ibn Abney

nope good question. I do my own taxes so I know that answer and plan for it in advance. It will vary based on income sources and other deductions and credits. Simply do your taxes with and without to compare the impact. 

for example i claim the student loan deduction and IRA contribution deduction. My LLC/schedule C contributed about 33% to my tax refund amount. easy to do on efile. hope that helps.

@Manny Miranda what type of deal? Turnkey rental, distressed property for rehab/flip, etc?

Also, is this a mls deal or off market? and what price by chance (dont need this if you dont want to share)?

Without this info, would all be an opinion by anyone on the forum, but I would say (IMO) if you dont know what you looking for you should not be going on showings/making offers. you will buy something you are not ready for and/or waste the brokers time. 

make a plan first. that plan should dictate what to look for.

Good Luck!

 What are you Looking for? PM me. Lets Connect.

Ibn Abney | Founder

Rica Tierra LLC

Start with a Plan. End with a Goal.™

I wish I started when I was 20yrs old! Good Luck!

@Amzy Dedios FHA is for owner occupied only.

Dave Madoch I never considered buying a parking space, but my town home came with two parking spaces on my deed. I put the parking spaces on Spothero and was definitely surprised. The easiest and most passive way to make money! I would avoid renting the space out by the day. I get about $250/month and I'm in Edgewater. Your location should be double. Especially during the warmer months. Good luck!

Doesn't assume appreciation of course.* 

@Amzy Dedios estimated rents? 

Based on an ROI of 3.88% which seems relatively low. please see below. My stock portfolio is at 5% YTD (good market). I would require 2-3x that number to invest in a non liquid asset. Also if $200K is ARV, not much room if the market tanks. I would look for a more value add opportunity or try to negotiate with the seller.

Total savings = Cash Down PMT difference + 1 YR mortgage PMT difference + ROI  Difference + estimated tax benefit for higher interest PMT difference

Ill keep the $16K in my pocket in my opinion. :-)

Deal Analysis	Lender #1 (5%int/20% down/30yrs)	Lender #2 (4.625% int/25%/30yrs)	Bank(4.4%in/30% down/30yrs)	Lowest Down PMT vs Highest Down PMT
Purchase	$200,000	$200,000	$200,000	$0
Down PMT	$40,000	$50,000	$60,000	$20,000
Points/fees	$1,400	$0	$0	($1,400)
Cash Investment	$41,400	$50,000	$60,000	$18,600
Monthly PMT	($859)	($771)	($701)	($158)
ROI at 3.88%	$1,606	$1,940	$2,328	($722)
Monthly Cash Flow	$134	$162	$194	($60)
Interest	($8,000)	($6,938)	($6,160)	($1,840)
Est. Tax benefit	$2,240	$1,943	$1,725	$515
Total Gain (1yr)	$3,846	$3,883	$4,053	($206)
Total Savings	$16,499

@J.V. Paul No problem. My company provides real estate analytics and performs deal analysis for investors. My company website is currently under construction, my apologies.

This is a very basic, excel summary. We have much more advance tools. ARV helps because it determines your equity position in the property and ability to refinance.

Also, I discourage others from using the term "average". Averages vary widely by market and all deals should be analyzed at the local level.

Happy to connect and discuss further.

Few things first. 

1) Goal? Rental, Flip, wholesale, brrrr, house hack, etc?

2) Estimate Purchase Price?

3) Estimated Rehab/Value add cost?

4) Estimated Holding Time? relates to question #1

Must have this information to make the best decision.