All Forum Posts by: Ross Yeager

@Juan Ricardo Herrera, I switched from TCS Management back in January and now use @Kevin M. and Otter Property Management for my portfolio. It's been night and day. Kevin treats your properties like his own, and he's brilliantly navigated the COVID crisis as well (I'm all caught up on rents across my portfolio). I very highly recommend Otter Property Management. Happy to talk more if you'd like an actual client's experience.

@Simcha Davidman no I just do my own renovations and purchase now. Returns are way better and I know more of what I’m getting into.

@Alexander Canha no I buy and renovate my properties. Don’t really consider turn key anymore the returns just aren’t nearly as good.

@Arthur P. Me!!!! Doing BRRRR can't really go wrong in any market. Biggest risk is any short term debt during rehab, but my projects are in the 3-6 month range to minimize that risk.

@Kevin Moyer yeah that’s my thought too. So I’ll be paying federal tax, Philadelphia tax, and California tax. Awesome. Makes it almost not worth it!

My LLC is setup in Philadelphia (PA LLC). Philadelphia has its own set of business taxes, but my LLC is setup as a sole proprietary, therefore acting as a passthrough to myself for state and federal taxes on the profits. My questions are in regard to these Philadelphia business taxes:

• Do I need to file and pay the taxes on the business first in Philadelphia, and then also pay regular state/federal taxes on top of that or is there some sort of exemption since my LLC is acting as a passthrough?
• Are the taxes calculated before or after the "passthrough" taxes have been subtracted from the profits (I'm guessing before)?
• It seems that the business taxes are directly associated with the specific rentals in Philly. Are the taxes applied only to the costs associated with the rental, or does it take into account general business accounting, where I would only be taxed on the net income of the business rather than just for the specific properties?
• Would this change regardless of where the business is setup (i.e. I imagine that any LLC operating in Philly would still have to pay this)?
• Is there an optimal setup here that would minimize the dual taxation between out of state and in state?

@gregb exactly my thoughts on it. I can do a flip with that money and basically double it (I also have <100k in mine since I luckily stopped putting it in there once I started into real estate). 

There are several posts I've seen asking about whether or not it's a good idea to pull retirement funds out for REI. I've seen arguments for both sides and I'm looking to do this in the most tax efficient way.

I have several BRRRR properties and am continuing with that strategy. The returns I can get on those are much better than my retirement fund and I'll be able to be tax efficient with those investments. My properties are purchased through my LLC which this year in particular will have a lot of business write offs due to an influx of expenses this year and I am the sole owner so the LLC acts as a pass through tax wise.

Has anyone here done this before? How did you go about doing it and were you able to leverage any business tax situations to help reduce the early withdrawal taxes/penalties?

@Justin G.

1) Don’t property manage it yourself

2) get multiple quotes on the work

3) have multiple contractors lined up in case on me falters

4) be picky about tenants don’t rush into a bad one

@Chris Taylor I actually found my best deal on craigslist... it was initially disguised though due to the listing price, but I reached out and made an offer much lower than the listing and the seller agreed on it (after I had it inspected and appraised separately).