All Forum Posts by: Jeff Goff

I may understand this wrong, but under the new tax code capital improvements can be taken as a deduction rather than depreciated. Is That right? Specifically I had to do a new water heater and a $4000 foundation repair on a property. Can I just deduct those or do I have to depreciate them? Thanks for your help.

Thank you for your help.

@Kevin Romines I heard that I need 2 years experience as a landlord to count the rents. Is that true when Fannie and Freddie run that calculation?

My wife and I are set to close on our first purchase in 2 weeks. We would also like to set a contract to build a home with a personal mortgage as well. Does the LLC loan count against our ability to qualify for a personal residence? The LLC loan is a commercial loan from a local bank. Going conventional financing route for the personal residence.

Thanks in advance for your help.

Sorry if this has been posted somewhere. I couldn't find it. It is my understanding that Fanny and Freddie require 2 years of landlording experience to count future rents towards qualifying for a residential mortgage. Please correct me if I am wrong. My question is does this also apply to a loan on something with 5+ units? My wife and I are planning to sell our house (We paid too much. It won't cash flow as a rental) to get started. We would like to purchase a rental first before getting another house for us. We will likely only qualify for one mortgage, so I am exploring what options we may have during the first 2 years of getting some landlording experience. I have my eye on an 8 unit that we can afford and will make a nice cash flow. It would be nice to get into that, and a more reasonably priced house without having to wait 2 years. Thanks in advance for the help.

I am enrolled in the public service loan forgiveness program. At 10 years of making income driven payments my loans get wiped out. In a situation like that I wouldn't pay them off. If you don't qualify, I would probably just knock them out. Get rid of the bad debt so you can take on more good debt.

Thank you for your response. Grateful to have folks around who know a lot more than me willing to share some knowledge.

Thanks for your responses. I will research a Roth IRA a little more. It is my understanding that cash flow from a rental would need to be reinvested into the IRA fund right? Also I can't mix in personal funds? I am hoping to get out of the W2 world and live off passive income.

I have a 401k from an old job that I am trying to gain access to for investing. The amount is roughly 24k. If I stay in the W2 workforce I will retire in 30+ years. Since I no longer work for that job, I am no longer contributing to that 401k. Based on the analysis from Vanguard (they have my 401k) it will get me about $500 per month in cash flow when I retire. I feel like I can better that number. I have looked into self directed IRAs or solo 401ks, but am seriously leaning towards just cashing it out. My reasoning is that right now I am in the 25% tax bracket. Assuming all goes well with my future endeavors (I know that is a big assumption) I am hoping to move up to the 35% tax bracket by the time I retire. The way I see it, I take the 25% tax rate now plus the 10% early withdrawal penalty now, or pay 35% later. Based on that math I pat 35% of 24k now, or 35% of 100+k when I hit retirement age. Wouldn't it just make sense to pull it out now? What else am I missing? Thanks in advance for the help.