All Forum Posts by: Ash Hegde

Quote from @John Duston:

@Michael Hammer

Buy tons of real estate, become a real estate professional, get rid of your income with depreciation. Thier formula is simple. Finding a solution to your personal situation is the hard part

This is most likely what they are talking about. They are making cash flow from the investment properties and taking depreciation to offset the taxable income. So they have the cash to pay expenses with no tax liability.  

Yup, DSCR loans are your best bet if your personal DTI is holding you back.

I have a feeling this does not exist but I am posting to follow because it would be great to have! 

Hey, welcome to the forums. Pardon the questions but you'll get more help if we have a little more information. What are your goals? Starting out with a single family or small multifamily, or something bigger? How is your credit? Do you have anything saved up for a down payment? Do you have employment income or will you be financing just based on the rental income?  

How does your cash flow look if you cash out refi with todays rates? If your goal is to keep going and keep growing, this is likely your best bet if the numbers still work. 

Jason listed some really good options. As an aside, if you plan to hold and refinance after the rehab do not use credit cards as a high utilization will drop your credit and make the refi difficult and expensive. 

As mentioned above, there is an income limitation on the seniors exemption (and it is fairly low at about $32k). 

It's possible for a company to do conventional loans in multiple states if they are licensed in those states. Some loan types will work in other states without licensing, like DSCR, commercial, and private/hard money.

Quote from @Ben Zimmerman:

You can claim it all at once, or your can divide it out over several years.  Replacing an HVAC unit for tax purposes is considered an improvement, not a repair and therefor bonus depreciation from the TCJA should still be in effect through the end of this year.  It means you could deduct 100% of the cost against this years revenue.  

https://learn.roofstock.com/bl...

Good thought but careful with bonus depreciation. If the improvement has a life shorter than 20 years (items that would show up on a cost seg like carpeting, etc) you can take 100% bonus this year. Something like HVAC that would have the standard residential life of 27.5 years would not be eligible. 

Congrats! Glad it worked out for you.