All Forum Posts by: Jephte Augustin

I'm looking to BRRRR a CMX2 triplex in Philly where the first floor must have a commercial section. I have a few questions I'm hoping to get clarity on. Maybe some people have encountered this before.

1) As the owner, do I need any special license (other than the rental license required in Philly) to rent that commercial space out as an office?

2) Has anyone been successful at turning that 1 commercial space into an apartment + office? The space is quite large (17' x 60'), and I wanted to split it into 1/2 commercial space and 1/2 apartment. The regulation only requires the first 30' from the front of the building to be commercial space.

I'm hoping to get some insight from you if you've done this before.

Thanks

This is a strategy I'm considering. The issue I'm finding is that I might have to leave some money in the deal if I'm doing a BRRRR in my market to make many deals work. Leaving much money in the deal means I can't pay back my HELOC , which has variable rates. The cash flow from the properties will keep up with the HELOC interests, but not pay downs. Has anyone applied this strategy to BRRRR recently northeastern markets or similar?

BiggerPockets has been pushing multi family hard in the last few weeks and I’ve caught the bug. The question I have is whether anyone is aware of the health of the small multi family market (5-20 units) in New Jersey, especially central and south Jersey? Are you aware of an increase in listings? Are there brokers here who wouldn’t mind sharing what they see from their point of view?

Can you expand a bit? What is marginal tax rate?

I know of high income individuals who are are able to offset their w-2 taxes entirely. How does that work practically if I receive no money back during tax time after having already paid income tax via withholdings by my employer?

I'm in the process of converting my garage to rent out as a short-term rental.

I want to know if I decided to take advantage of the deduction to offset my w-2 taxes, whether I would get a refund from the IRS.

Example

Assume I paid $40k in taxes in 2023 and my short-term rental was active in 2023 after I finalized my reno. Let's say the reno cost $65k and income from the rental was $5k (net loss of $60k - simplifying the scenario). When I file my taxes in 2023, will I get $20k in returns? I know I'm over-simplifying my situation; but the essence of my question is whether I will likely get a refund.

Thanks

Thanks for all the helpful replies.

I will keep looking in the area to determine the STR friendly neighborhoods.

if you guys have any recommendations I'm all ears. Thanks

I have been looking into purchasing an investment property in Poconos as a #shorttermrental. However, after looking at the calendars of multiple hosts on airbnb, I got concerned that the foot traffic is a little light in the area. There are significant vacancies from what I can tell. Can anyone bring some perspective to that point?

Thanks

@Shawn McCormick Thank you!

I saw this thread a figured I would ask the following question: 

Does anyone who invests in short-term rentals in the Orlando/Kissimmee/Davenport area have any numbers they would be able to share to help inform my analysis? I'm particularly looking for information on Utilities, Internet for a 4-bedroom property.