All Forum Posts by: David Zheng

people will hate on the 1% rule, but I use it still as an AT least criteria (but only if youre a CF investor/not an appreciation junkie).

I don't like to count on appreciation to make an investment solid, so its not bad to use a 1% rule. Now this is apparently in a college town. What do bedrooms usually rent for in that area? Even if every stupid were to pay $1000/bed. You're still only at 800k.

I also would price this at most around 700k.

@Dave Toelkes

Sorry I should have clarified more clearly these are all example numbers and timelines. I'm mostly wanting to learn how to get this sale taxes.

I did not know that insurance and taxes/month cannot be counted as a deduction from the sales price so that helps a lot.

@Linda Weygant
@Natalie Kolodij


It was intended to be a long term rental for me, but Now I want to move into other projects so I want to sell it. " Example"Currently rented out cashflowing 400/month but I've only seen two months of this profit with the previous 8 months vacant.

So I guess what I'm hearing is if I sell it for 125k and had bought it for 100k, I would be taxed on the 25k+ profit even if I've had losses/ additions?

Hi Guys,

quick question. So I'm looking to sell a condo I've only had for about 10 months. Going to use some numbers for examples with my questions at the end

100k purchase price  20% down 80k equity in it
closing costs for purchase were 5k
10k in Capital Additions
While working on the property it was vacant and therefore there were "losses" through tax, insurance, utilities, mortgage, etc.
lets say there was about 5k  in losses through monthly payments (8 months worth)
lets say I've also spent about 5k in maintenance

breakdown of cash in the deal is

Downpayment: -20k
Additions- -10k
Closing Costs: -5k
Total "Loss"- 5k

Maintenance- 5k


If I were to sell the house for $125k, Do I have to pay a capital gains tax (on the +25k) even if my total cash in on the condo is the same as the sale price? If so do I claim the other losses, maintenance, etc on my personal tax returns?

I would really like to just call it an even sale and not pay capital tax and also not have to report any losses on my taxes

wow, I was still playing neighborhood hockey at your age.

Congrats on the hustle!! my advice is to focus on doing well in HS, but in your free time, keep reading and doing your own analysis. Learn learn learn. when you can, get a part time job and save save save. You'll be way ahead of the game when you can start investing at the right age

wow I love these tiny houses. Amazing work!

@Anuj Anand It's about 100 years old, but basically 70% of the houses and multifamiles in Dogtown,Ucity,Pershing,Debaliviere are.

I don't know the complete history of its rehab, but it's been very well taken care of.

The high rent is driven off of the area. right next to a large school, central to STL, access to forest park, loop, BJC. its easily one of the most stable places to rent or as a primary

@Megan Greathouse yup! lots of exit strategies for it as well

If you or anyone else is interested lmk! also will give referral fee if you find someone

@Megan Greathouse Debaliviere neighborhood, about 0.4 miles from WashU

Just in Case anyone is looking....I'm selling a Single Family right now for less than 290k, has current rents of 3120 and is in a B+ Neighborhood!

Appreciation and cashflow. win winnnn