All Forum Posts by: Manoj N.

This is a townhouse with large HOA. Hence the small insurance. Actually I overestimate the maintance cost. I think you are completely missing the point when you equate charity with investment for long term.

 Pretty basic accounting. The new property will wipe off about $6800 from my Sch E in the first full year. I owe less according to my tax bracket.

My analysis of the rental property here. 

http://www.calculator.net/rental-property-calculat...

Mike, my thoughts exactly. The idea is to offset my taxable income from one property with a loss from the other. I think 150k is irrelevant here. Loss is very small when not considering depreciation. And loss is offset by the tax advantages. And I don't mind kicking the can 27 years down the road:-)

Steve. Yes that is the case. I ran my numbers through my tax professional. 

All. Thanks for your feedback. In my view, the Denver-Boulder metro area has strong growth potential. For example, about 100K new comers are settling in this area every year for the past 5-6 years.  Coming to Mike Dymski's comment that RE investment has 4 advantages - (1) cash flow (2) principal reduction (3) appreciation and (4) tax benefits - I think I cover all except the first. But with a modest increase (4%) in rent, I will turn positive cash flow in 3 years. In the meantime, I guess the tax advantage can offset the negative cash flow.

Thanks Natalie. Perhaps my question was not clear. If buying this property can get me a tax refund of $1700 per year, could that be justified in buying -$500 property ? Agreed, if the new property generates a positive cashflow, it will be a bonus. But getting something like that in Boulder, CO region is very difficult.

I am planning to buy a rental property in Boulder, CO. The property will result in slightly (about -$500 annual) negative cashflow after considering all usual costs (P&I, HOA, Repair etc). However, if I buy this property, this negative cash flow will be offset by a $1700 tax savings since another rental property I own generate considerable taxable income. I will get a positive cash flow of $1200 if I buy this property because I will owe less tax. Is this a good reason to buy this property ? Thanks

I have an applicant - a nice family - who applied for my house. Their business went bankrupt in 2007 (filed for a bankruptcy then) and their second business  also went into debt due to non-payment from clients 2013. Currently they both are employed. He and his wife makes more than enough money to cover the 3*rent, but he indicated that they may file for bankruptcy in the future due to non-paid business bills from 2013. Their credit scores are low (<600). Otherwise their history is clean - no criminal cases or evictions. Their current landlord and the previous one have good opinion about them. What would you do in such situations ? Just say no ?

Thanks for your insights. It is hard to evict someone who stayed that long and at this time of the year. I will give her a date to pay or get out.