All Forum Posts by: Kikko Maeyama

Hi. I would like your advice and experience. Does a new one-apartment rental business need all 4 accounts/funds?  Can I put a security deposit in the operating account until it is returned to a tenant instead of opening a separate security deposit account? And are the cash reserves and an emergency fund the same thing? Thank you for your help.

Thank you for your replies, and as Mr. Lee said, it appears that the realtor was referring to STAR credit. I am a newbie and in the process of educating myself and looking for a suitable property to invest. From now on, I know to ask sellers if their property tax amounts include STAR credit or not. 

Thank you for waking me up!

A realtor told me that New York City would charge a higher property tax on an investment property and suggested that I change my mailing address for tax bills from my primary residence to my investment property in order to save tax. I haven't been able to verify this info. Anyone knows about it?

And if it is true and I follow this advice to reduce a property tax, I would think that I would lose Federal tax benefits related to investment properties. Or am I wrong?

A book about rental property investing I am reading says that a total cost of project = purchase price + closing costs + pre-rent holding costs + repair costs. Why isn't a down payment included here?

The scenario presented is as follows:

Purchase price: 75,000
Closing  costs: 2,500
Pre-rent holding costs: 1,200
Repairs: 17,250
Total cost of project = 96,950

Mortgage: 60,000 (80%)
Down payment: 15,000 (20%)

I thought that a total cost of project was and a total initial investment are the same thing. Am I wrong?

Hi everyone. In calculating on rental property cost/benefit, is it appropriate to consider annual depreciation amount that an investor gets to deduct from income tax filing as part of profit? Thank you.

Thank you for your encouragement. 

I have read books about rental investment and they ALL talk about financial freedom / early retirement. I am already retired and have enough money to live. But I also have some more money to invest. As I already have traditional investment, I am interested in diversifying and in rental property investment. But at my age (62) with a shorter time horizon ahead, is it a bad idea to start now?