All Forum Posts by: Michael Saberniak

Hi Elizabeth, 

Thanks for the information! I have found that I have to be very picky in the Escanaba and Gladstone markets as well. The last vacancy that I had we must have had 50 calls and 20 showings before we got back an application from a qualified prospect. It is a little easier in late summer though. 

How much do you think the 3b 2b ranch homes in Sawer rent for? I have noticed more appreciation in Sawer over the last 4 years that in any other local market, though I have been mostly looking at duplexes. You are right though, I doubt that will continue long term. My wife and I would like to meet up sometime if you would be open to that.

Thanks

@James Wise

Yes I live in a very small town and am thus forced to invest in surrounding towns up to 45-50 miles away. The UP as a whole is sparsely populated and thus a small market.

Hi Eric, 

I am not sure on property managers as I have been doing most everything myself. I thing there are a few decent ones in Marquette, but I am not sure beyond that. I have found that in order to get good tenants I normally have to wait 1-2 months to get apartments filled. This is just relying on craigslist and is only in the Escanaba market. There are huge variations in property values and rent-ability throughout the UP. If you told me where you were looking I might be able to tell you more.

 Thanks Steve!

It takes some digging to see what applies. Of course buildings must be depreciated over 27.5 years, but if I am understand things correctly appliances, furnishings, and sometimes? building improvements can even be deducted thought Sec 179. 

In my case I was looking to deduct furnishings at a vacation rental.

Thanks for the link. I did some more reading on the instructions for IRS form 4562 (depreciation and Sec 179) and found this:

http://www.irs.gov/instructions/i4562/ch01.html

Section 179 property does not include the following.

• Property held for investment (section 212 property).

This looks to mean that one must be a "Real Estate Pro" in order to take the Section 179 deduction.  Am I understanding this correctly?

@Ann Bellamy  

What I meant was skip the SDIRA entirely. 

@David Krulac

I have heard of using a 401K as collateral so I assumed that an IRA would be the same. after a quick google search it seams I am wrong. Though it might be an option to roll over some funds from an IRA into an employer sponsored 401k and then borrow against them in the case of needing (unsecured) collateral.

Also I was not recommending holding the title in an IRA as that seems a bit pointless with the normal tax advantages of real estate.

I would think it would be easier to get a line if credit secured by your IRA instead. Much less hassle, then you could take individual mortgages out on the properties being purchased.

Hi y'all

I am a self employed landscaper that has managed to save enough seed money to buy a couple duplexes, a vacation rental and complete my first flip. My focus right now is on growing the buy and hold in the central UP ( Escanaba, Gladstone, Marquette, Skandia MI). 

I am always interested in meeting other investors in the area! ..... all five you! 

Michael

I have done some searching on this and have not found a straight answer. 

Does one have to be a "real estate pro" in the eyes of the IRS to qualify for the Sec 179 deduction? Or can you qualify by only being an "active investor".