All Forum Posts by: Eric Wang

In America, everyone has choices.
Everyone is in the business of making money.
What it really comes down to, is timing. Your buying when everyone is selling. You got a great deal cause you bought at a great time. You made a profit cause you sold at a great time. For example, this is what I hear lately, "man, I should had sold my house during the housing boom."

http://www.minisplitsystems.com

Nick,

I just bought a Ductless Heating and Air Conditioning for my rental.
It's quiet and energy efficient. It's called a Minisplitsystems. You can install it yourself and pay a HVAC to inspect and startup.

Check and see if there is 4 gas meter. Local gas company will not install gas meter without approval from your city. Another way to find out is from your local planning department. If you search your local city website, planning dept., they have a color coded map where all the multi-units are located within your city. You will know if your area is not zone for multi-units.

The person that should be really answering this question is your CPA, since I'm not one.

Meals and Entertainment Expenses:
You really have to be careful here and make sure it's a business related expense, you don't want to get audited because you wanted to write-off a $20 dinner at Denny's.

Taking your employees out is not a business expense. Even taking your friend out because he helped paint your house is not a business expense. A company holiday party would be a business expense. Everything has to be within reason.

As a Realtor or a landlord, you would be able to write-off because your educating yourself for your business. Business expense is for business purpose only.

Food expense depends on what type of business your in. If your in the rental property business, NO. If your a Realtor, Yes, because it's reasonable to take your clients out to discuss about properties. Even if your working on your rental property, you can't write off the food expense. In the rental property business, you deal with tenants, you don't take your tenants out to dinner.

Second on the "Every Landlord's Tax Deduction Guide."
You should do your own taxes along with having your CPA do it. This way you understand where all the expenses goes.

"Your in the cash flow business, not appreciation business. Appreciation doesn't pay the bills. Cash flow does." In the past, I calculated appreciation into the equation because that what I was taught in class and by other agents, thanks to the people on BiggerPockets, they set me straight.

Unless you find a Realtor who is also in rental property business, they will have a misunderstanding about cash flow. The truth is, it's hard to find cash flowing property online. Your going to have to physically talk to people.
"When buying on MLS, your going to pay retail."