All Forum Posts by: Sudhanshu Singha

@Alex Forest The eviction moratorium has definitely been extended in Virginia to June 28th and that date is not recommended but applies to everyone in Virginia. I believe going forward Virginia will be a more tenant friendly state with more protections for tenants along with more restrictions for landlords. 

@Wesley Harper Make sure the tenant moves out of the property with all of their belongings, returns the keys and you change the locks before you give them them cash or you might get swindled! This is especially important with all of the eviction moratoriums in place. 

@David V. I'm not a Tax Pro but I am knowledgable in tax matters. To the best of my knowledge you won't get any of your social security benefits reduced since the rental income will not be included in the retirement earnings test but with a rental income that high, 85% of your social security benefits will be taxable so your social security will be reduced but not due to the retirement earnings test but instead due to crossing the "Combined Income" threshold. Your "Combined Income" is (AGI +Tax Exempt Interest+ 1/2 Social Security earnings) and depending on your filing status their will be different Combined Income thresholds which determine how much of your social security is taxed but if you have $80,000 worth of rental income you will definitely cross the threshold no matter the filing status.

  @Steven Cruz I am not that familiar with a 457b plan but the main incentive for putting money in a 401ks is the employer match, since its very hard to beat a guaranteed 100% return, and tax deduction. If your employer is not offering a match then really the only incentive is the tax deduction which you can also get from opening up an IRA.

I personally only invest the match % in my 401k and invest the rest into S&P ETFs on my own until I am ready to purchase a new real estate property. Some people are more conservative with their savings and keep it in the bank or money market account but I take a riskier approach and have all of my savings invested in either the either index funds or real estate. If you want to expand your real estate portfolio it really does not make sense to save any more than the max match % in a 401k account.  

My recommendation would be to only invest on your own if you really  spend time researching your investments. For example if you are going to invest money in individual stocks you should really pay attention to the outlook for those companies. If you invest in index funds then it is more like expecting the overall market to go up or down rather than a individual company. 

@Neil Nagaria Another option is to offer them Cash for Keys to get them to leave and maybe 1-2 month's rent in Cash will be enough to entice your tenant to leave. The reason I am suggesting this is the last thing you want is for the eviction moratorium to get extended until 2021 and you losing out out of rental income for the rest of the year. 

@Chris Hill I have not personally hit the 10 property limit yet but the local investors who I keep in touch with all went to local portfolio lenders to finance additional real estate properties after hitting the 10 property limit. A lot of the smaller community banks are portfolio lenders and will work with you to increase the number of properties you have and usually don't have a limit on the amount of properties you can buy but may have a cumulative dollar amount they can lend to you. You will likely have to meet a Debt Coverage Ratio (DCR) but that should not be a problem since you are investing for cash flow to begin with and probably would not be looking to invest in a property which did not cash flow or cash flowed very little.

But yes, as you mentioned above the interest rate will not be fixed and most likely will change every five years but the amount is relative to the market rate at that time so it could increase, stay the same or even be lower depending on the market rates at that time. Usually after five years you will have plenty of time to put in rental increases so even if the interest rate does go up you can still maintain the initial  cash flow. 

@Michael King The amount which the government used for stimulus check is the adjusted gross income amount on line 8b on your 1040 tax form. In your case since your combined income with your spouse that amount is over 150k then it is still ok since you will receive some kind of payment as long as it is below 198K.  The reduction amount is around $50 for every 1k above the threshold(75k single,112.5K head of household,150k married. In your case it makes sense that you only received 3k since you mentioned you made more than 150k. If you made 150k or lower you should of received the full $3,400 amount instead of $3,000. 

@Account Closed There are probably several multimillionaire's who probably use Tax Strategies or loopholes to lower their adjusted gross income to a low amount or even to zero just like Fortune 500 companies. Because the Stimulus payment only looked at your AGI from 2018 or 2019 there are probably many millionaires and even some billionaires who might of gotten a stimulus payment if they had a low enough AGI. The amount is the same though $1200 for single if AGI is 75k or lower and $2400 for married couples if AGI is 150k or lower 

@Sam Bedich I invest my capital reserves in Vanguard S&P 500 ETFs for all of my properties. They are very liquid investments and have minimal fees.  

@James L. I used to also only accept checks or money orders but I have started to use zillow rental manager for payments now. It is easy for tenants and they can also pay by credit card. It does not charge the landlord or tenant any fees if they use ACH. 

@Michael King If you are single then you can't make more than 75K to get the full $1200 and it starts to reduce for incomes over 75k and goes does to zero once you hit 100k. If you are married then you can't make more than 150k to get the full $2400 and it reduces and eventually goes down to zero once you hit 200k. If you have kids under 18 then you can also get $500 per child 

@Account Closed If they were married and got less than 1200 then they probably made more than 150k but less than 200k