All Forum Posts by: Account Closed

@Junior Soares

I was about to call BS on your 4-unit in Marysville until I saw your edit.  Who is your PM company?  I'll check them out since they are local.

... And most importantly, congratulations on taking action!

I forwarded this thread to my CPA who is an investor himself and works with a lot of investors.  Here's what I was told:

Marc, it appears that the IRS is interpreting the law to disallow rental real estate investors from being included in the definition (which is bad news).

Historically, the tax courts have sided with the IRS when they use Section 162 against rental real estate investors, so this would be a losing battle if challenged.

<I then asked about restructuring my rental business in any way to improve things.>

As for corporate structuring, it’s the nature of the income (not the structure) that matters.

You could set up a management company and charge your rental portfolio management fees but that would also create employment taxes which would more than offset the tax benefit. My fees would be higher making that restructuring more costly than what it’s worth for you.

So I guess if the intent was for rental property investors to be able to take advantage of this, it will need to be amended to be more clearly stated by the legislature.

Dear mr landlord will you subsidize the grow lamps I am running in the basement? Kthxbye.

Nice trajectory.

Beginner tip:  One thing to consider, if you decide you want to DIY the repairs just to learn, you will incur a lot of expenses buying tools you need but do not own.  This happened on my first investment property a long time ago.  I also was not very handy, and did not own much in the way of tools, so everything that needed to be done, involved buying the $10 part to repair it and the $200 in tools needed to do the repair.  I dramatically underestimated the cost involved in "not owning enough tools".  I probably spent more $ on buying tools I didn't own than I did on all the supplies needed to do the repairs.  At least I still have the tools now.  (But I only use them for my own house, I use PM for my investments these days.)

I consider RDPD more of a branding book than anything else. There are some cool sayings in it, and it is certainly a book that can get one excited about becoming wealthy but I can’t really point to any investing strategies I learned from it.

Necropost.  We hit our 2018 goals in May :)  

Wow congrats! I’m also amazed how fast I’ve grown my investments in just two years. Taking action makes all the difference!

I would ignore all advice on this thread that is not from your lawyer or from an investor who has actually dealt with this issue before.

Septic tanks are great in your personal property since it’s nice not having a sewer bill. I have one myself. However there is NO EFFING WAY I’d ever buy an investment property on septic unless I was definitely replacing it with sewer lines to the city. You can really mess up the tank and require more frequent pumping based on what you flush and tenants aren’t gonna be careful about that. They will flush paper towels, tampons, etc. maybe a toothbrush like one of mine did this month... :) Plus I read somewhere on here about someone whose tenant was running an under the table laundromat from their rent house which was on septic and constantly backing up the tank and fields.