All Forum Posts by: Michael Keane

Hello BP Community!

I am an out-of-state investor located in New York. Two questions regarding tax deductions in connection with out-of-state investment properties:

1. Following acceptance of an offer on an out-of-state property, I traveled to the property to meet with the realtor, owner, and inspector and complete the walk-through. Three weeks later, I closed on the property. Are travel expenses (airfare, hotel) incurred after acceptance of the offer but prior to the down payment/closing tax deductible? 

2. Separately, are travel expenses to an out-of-state property paid for with credit card reward points tax deductible?

Thank you! 

That's difficult to answer. So many variables -- unit type, condition, location, time of year. Maybe look at the going rates on VRBO and Airbnb and then rents on Zillow. 

Hello BP Members! 

I am undertaking interior rehab work on a duplex in Columbus, Ohio, and looking for referrals for a general contractor. 

Thank you! 

Masterful! And inspiring. Congratulations, and thank you for sharing!

Hi Mike.

I am a full-time resident of Long Beach, NY. 

The regulations around STRs derive from the State, and typically differ by type of residential property (multi-family condo, single family home, etc.). I believe it's a minimum 30 day rental, but double-check that. I Airbnb'd my condo unit for three months to a single tenant last summer, and only required condo board "approval." 

I know of no existing STR provisions deriving specifically from the City of Long Beach, which has always been a thriving rental community. Of course, one never knows what tomorrow may bring...

Peak season is of course Memorial - Labor Day, but there is also demand in the 'off-season' for mid-term rentals (coast guard, traveling nurses, etc.). 

If you want to look at an example of recent strict ordinances regulating STRs, look at Charleston, SC. STRs are restricted to primary residences; in other words, you cannot invest in a property in Charleston and rent it out when you're not there, unless it becomes your primary residence. Even then, I think there is a 30-day minimum (again, double check the specifics).

 Thanks, Tarik. 

Originally posted by @Jesse Rivera:

If you are trying to go conventional, it's not a lender guideline, it's a Fannie Mae guideline, so unless you are going for a portfolio or non conforming loan, there is no negotiation. Lenders won't be able to sell the loan if the go lower than 25% down. If you are going to live in one of the units, that is a different story.

 Thanks Jesse. 

Hello BP Community:

I am in contract on my first investment property -- a duplex. I understand that many lenders want 25% down on multi-families for first-time investors. 

Any suggestions on how to negotiate with lenders on a 20% down payment, instead of 25%?

Thanks! 

Thank you!

Jordan, thank you. Very helpful. I think, too, with the 203k loans for multifamily, that the owner has to have primary residence in one of the units. Is this correct?