All Forum Posts by: Jessica M.

@Amit M. thank you for the tangible tip. I will research more about the schedule E form with 1040. I would like to find a CPA that specializes with real estate if you have any recommendations, that would be greatly appreciated. My current CPA who does not specialize in real estate stated that I make too much annually to benefit from rental property tax write offs but I have recently been reading over information about real estate investing tax  strategies because it didn’t seem to make sense that I make too much annually to benefit from any rental properties. And yes the goal is to make sure my mom is taken care of as well. 

@Erick Lee thank you for taking the time to respond and thank you for your insight. That's a good idea to keep cash for reserves and open HELOC for remodel and attached ADU conversion. I'm in the process of getting an estimation from my general contractor to see if dollar amount makes sense and yes he said the cheapest/easiest route would be garage conversion.

@Jonathan R McLaughlin yes I solely own 100% of both houses with only myself on deeds and mortgages. Cost of living in Bay Area is expensive and my mother doesn’t make that much money. We use to own the property 50/50 until she couldn’t keep up with it financially anymore bc her circumstances changed so I completely took over the property. 

Hello all. Even though I am not new to being an home owner I am new to real estate investing. I currently own 2 homes in Bay Area California for 10+ years and sitting on $1 million in equity. 
 
First home I purchased with my mother who recently got into financial trouble. In result I refinanced the house under my own name and had to pull out money to cover her debt and leans on the house. I owe 325k and house is comped at 700k. She rents the house under market value at mortgage cost so I gain no extra income nor have any rental tax write offs. She also rents out the spare room to help with her own living expenses. 

I also own my primary residence in highly desirable neighborhood. I owe 375k and it’s worth  around 1 million. I have around 60k in savings for a much needed  remodel on the house and have access to another 50k in 401k as last resort  I been going crazy trying to strategize the best scenario that makes financial sense to gain passive income to cover both mortgages and then some and gain a greater tax write offs/incentive.  

Thoughts on how to achieve this? By Building an ADU or house hacking on my primary or second home? By continuing to save and purchase investment property in a year or two? by moving in a box and renting my own house out for top dollar? : P

Thoughts please as well as any financial or tax recommendations.