All Forum Posts by: Nicholas Aiola

Hi! This is a great question and one that is often misunderstood. The answer, like almost anything else tax-related, depends. Travel costs (in general) are deductible as long as they are what the IRS calls "ordinary and necessary" expenses. For a real estate investor, costs incurred when searching for properties definitely meets both those criteria. However, travel costs incurred when SEARCHING for an investment property are deductible only if you buy a property in the area you were searching. In that case, when you buy the property (whether it be tomorrow, a week, month, or year from now), the travel costs are included in your "start up" costs, added to the property's basis, and depreciated over 27.5 years. If you never wind up purchasing a property in the area you were searching, the costs are not deductible. Travel costs incurred when tending to a property you already own are deductible as a normal business expense. In this case, you may be limited by passive loss rules, depending on your income, activity, and other factors. But that doesn't mean the expense is lost! Hope this helps! Happy hunting, Nick Aiola, CPA

Hey BP Community,

I'm a prospective investor and CPA from--and planning to invest in--Rockland County, NY. I'm looking for any local meetups about REI (particularly buy & hold for multi-families).

I've been scouring the market for a few months now, but I'd like to attend a local meetup or meet with anyone who is interested (specifically lenders, contractors, and other investors) to discuss the local market and opportunities.

I look forward to hearing from you guys!

Nick

@Colleen Carey I totally agree with @Josh Mitchell ... In my opinion, it doesn't pay to lock yourself into a 15-year mortgage, especially if your strategy is to buy & hold. If something goes wrong, if there's maintenance or high CapEx costs, or if you have vacancies, you will have the excess cash flow to cover it due to the lower payment on the 30-year option.

If cash flow isn't a primary motive for you, you could always apply the extra cash flow towards the principal in the form of additional payments, giving you the ability to own the property free and clear in 15 years without the actual requirement of paying it off in 15 years if you, for whatever reason, are unable to do so.

Just my two cents!

BB Liu Paul Staszel Ceasar Rosas Thanks for the input, everyone! I should have clarified in my original post - I just purchased a condo in which I currently live, so owner occupied is out of the question for right now. I believe that eliminates me from both an FHA and a 5% conventional loan. Ceasar Rosas - I will definitely give that book a read. Thanks!

Hi, @Shanel Wiggins !

I know I'm a little late to the party, but as a CPA from Rockland and potential REI in Westchester (mostly all of my family is from Westchester), I'd be happy to chat with you. Feel free to PM me if you have any questions or just want to talk about the local real estate market.

Hope to speak to you soon!

Hey guys, My intended avenue of investment is buy & hold (multi-family units), but I don't have the capital currently to jump right into that type of investment given the prices of multi-family homes in Rockland and Westchester counties (New York). I know that a fix and flip would yield some up front cash, even after taxes, but I have no experience with flips, nor do I have a network of trusted subcontractors or even a trusted GC. It's daunting to get a loan from a hard money lender without the experience or network to execute a seamless (more or less) flip. On the other hand, the BRRRR strategy seems to align more with my overall goals, although I still face the problem of being a newbie to rehab projects. Either way, hard money loan & other holding costs add up QUICKLY, so I'm trying to soak up as much knowledge as possible before embarking on the journey. Has anyone been through the same experience/arrived at the same crossroads? Thanks in advance for the help and advice!

Originally posted by @Navin P.:

Hi Nicholas,

Welcome! I'm very new to the community too and am focused on Rockland if you'd like to ever discuss ideas. I'm also exploring Staten Island with a friend.

I'm a corporate attorney working in midtown east and living in Brooklyn. I grew up in Pomona and my family has properties in Rockland. I'm looking to finally get into the family business and expand our small portfolio.

Ive been very impressed with the forums here and the the knowledge shared among the community members. Seeing your post motivated me to finally say something, so thank you!

Keep us posted and good luck!

Navin P.

Hi, @Navin P. !

Glad my post helped serve as an ice breaker. The wealth of information on BP really amazes me more and more each day and I'd be happy to connect and discuss ideas with someone who shares similar interests. Consider the connection request sent!

Look forward to speaking with you soon,

Nick

@Darren Sager Just signed up! I'm a newbie to the REI world and this seems like a great first meetup to attend. Looking forward to it!

Originally posted by @Steve Kontos:

@Nicholas Aiola

Welcome!  Being a CPA definitely helps when it comes to real estate investing.  You do need to have a good "game plan" in place that is practical for what you are looking for.  The best way to devise this is by attending networking events, reading books, and listening to the podcasts on here.  That is what helped me create my business model.

Best of luck!

 Hi, @Steve Kontos ! Thanks for the wise words - I've been on BP for about a week and a half and have already learned so much. Definitely looking forward to soaking up as much knowledge as possible.

Originally posted by @Matt Carey:

Welcome. If you need a good RE agent, I can see who is in my network up there. 

 Hey, Matt. I really appreciate that, thank you! It never hurts to add a few more contacts :)