All Forum Posts by: Omi C.

I asked my CPA this same question once and this is how he explained it to me:

You can't claim the downpayment as an expense because you really haven't spent it. You've just converted the downpayment into equity in your property. It still belongs to you, just in a different form. This is also why the principal pay down portion of your isn't deductible - its just getting converted into more equity. Finally, this is also why the interest portion of your payment *is* deductible. The interest was a cost of borrowing money, and is therefore an actual expense. Hope that helps.

And of course, do talk to a CPA about this.

Thanks for the warnings @Mike D'Arrigo. I will focus my search outside of this area.

Thanks Brady, Jim, and Jane for the warnings about this area. I see the crime rates, and the other concerns here. On the other hand, I also see some data about this area getting redeveloped / gentrified, but I wanted some "boots on the ground" perspective. 

Jim, I agree that  any purchase in this are will require some very hands on management for the forseeable future, and I don't think I'm ready for that yet, even if I work through my property manager.

Thanks again everyone.

Looking for some market information around Troost Park. I would appreciate any insights on the area. Thank you!

Ooh, Chaminade! Fancy. I will most likely be there. Thanks for setting it up.

Thanks for the mention @Shane Pearlman! See you there.

We just had an interesting discussion on this subject of larger vs smaller apartment buildings. Check it out.

I just discovered showcase.com. Its a costar company, but seemed to show more listings (fewer hidden/premium/locked listings) in my search area.

TK Partner makes sense. However I do think most people are going to want to lookup how you define each term almost right away. 

Yes, Williams model is like you describe. The fact that I can do it entirely remotely, and only have to deal with 1 person for the purchase, rehab, and management is what makes it turnkey (enough) for me.

Great idea @Brie Schmidt and @Jay Hinrichs !

Something I'd like to see is "Turnkey Model". It seems like every provider has their own definition of turnkey. The panel you were on at the SF summit opened with this idea which was fascinating to me. I've since worked with @William Robison and his model has the investor buying directly from the seller (instead of the turnkey company), pre rehab. Other providers sell you the property directly post rehab and finding a tenant. If there is enough variance in model in the turnkey market, then this would be a useful way to categorize them.

Good luck on this project! I'm looking forward to seeing the end results. I'm a techie myself, so if you need any help just let me now.