All Forum Posts by: Ash Hegde

Agree that you should ask a CPA. 

I think the answer is no, that you would have to take it in 2023, which would lock your losses in as "passive" and carried forward into 2024. What I am unsure about is if REP status in 2024 will allow you to take that 2023 loss that was carried forward. 

A hard money loan is not the best for a live in flip. To get the tax benefits of a live in flip you would have to live there for two years. Hard money loans are usually shorter term, carry a higher interest rate, and the lenders generally don't want to lend on a primary residence. It is a great loan for a standard fix and flip though. 

If you buy a home that just needs cosmetic updates, you could try for a conventional primary residence loan. For a more distressed property, you could look into an FHA 203k rehab loan.

If you refinance your current duplex, the rate will be the market rate at the time of the refinance. You would not be able to keep the same rate unfortunately. 

Welcome aboard Josh! I think you're on the right track, a net-zero living expense is awesome and will do a lot for your future investing endeavors. How quick you can scale will depend on your future work income as well as rent and equity appreciation in the property, but either way this is a good start. 

One option with your real estate license - if you don't feel confident in finding the property yourself, you can use it to refer yourself to a more seasoned investor agent and get some of the commission. 

Congrats on acquiring 3 properties in your first year! In general, as you are scaling up you do not want to pay down anything extra on the mortgage. In your case, I would use any available cash to save up down payments until you reach your goal of 10, then reassess. If you decide to stick with 10 properties, at that point I would consider paying extra. 

Welcome to the community @Samar Sleiman !

I believe this would work, though you would have to pay tax on depreciation recapture on the one that was a rental for two years. No capital gain though. 

That does seem unlikely unless you changed your withholding to take less from your paycheck. The other possibility is that your rental did REALLY well - it would probably have to be a home run short term rental to generate that much taxable income in that short of a time frame. 

@Anthony Jackson if you have equity in an investment property, I agree I would use that before using from my personal home. However, if that isn't an option, there is nothing wrong with tapping into your personal home if needed. 

If you are using the equity for a flip or BRRRR and plan to pay it off quickly, I think a HELOC is better. You are only paying interest on the outstanding balance and you can reuse the credit line over and over.

If you are using it for a down payment on a property and plan to keep the loan for a longer period of time, I think a fixed rate home equity loan or refinance would be better, as a HELOC has a variable interest rate which can hurt when it goes up.

@Dave Foster may be able to help with this.