All Forum Posts by: Justin R.

@Eamonn McElroy I was asking this question based on large rehab "buy and hold" properties. Im very aware during a flip all expenses go against my gains. 

A few CPAs (some on this site)  have mentioned this this "de minimus" is way to often overlooked, and can easily move would be capitalized cost into the expense column. 

Perhaps this is just one of those areas that is open for interpretation among "aggressive" vs "conservative" accountants.

According to the interpretation of some CPA'S the de minimus rule applies to real estate investors. Per their statement, any itemized expense under $2500 can be moved into the repair category, even if it is considered an improvement. This would be a huge tax advantage, but it seems less than common in R.E. My personal CPA has never done this for me, and I have done many large rehab projects.

Copies of All insurance claims in last 5 years

Accounts for Utility company to verify utility expenses

Copies of last 2 tax bills (at minimum) . Nobody ever tells the IRS they make more than they did!

For the most part strong cash flow is found in secondary, and tertiary markets along the midwest, and south.

Hello @Katie L.. Sorry for reviving an old thread. What are your thoughts on remote relationships with CPA? I have always enjoyed sitting down at the table to discuss taxes, but perhaps thats my comfort based upon habit. Have you done remote accounting/taxes for your clients, and if so do you believe this is just as beneficial?

Thank you!

Justin

Makes offer more credible with submitted together.

@Christian Scully Your not wrong, just extremely conservative.

You came up with 1M in interest over 30 years, with multiple properties. That is cheap. With 80/20 leverage, you could theatrically purchase 5x the amount of homes, while earning appreciation, and principle pay down on all of them.

Leverage is like a knife. It's a tool that can help wonders, or harm you.

@Tj M.

I personally feel like I'm leaving money on the table.

I enjoy leveraging, and principle pay down.

@Isaac Essex I placed cameras up in an obvious place. It has helped.

I have a fantastic broker in Maine. I cannot guarantee he will do that amount, but I know he can be a great resource. PM me and Ill send you his info!