All Forum Posts by: Sy Pires

@Bill Crow thank you! I was not considering trying to count the lower rent as a loss. I was more concerned about the ability to write off any Op Expenses such as repairing parts of the house and basic maintenance. I will definitely have a chat with a CPA for further detailing. Thanks everyone for the input.

@Peter M. I’ve read that if it’s rented under market value, then it would be considered as “personal use.” My wife and I live on the second floor and rent out the first.

@Dennis M. Thank you for your input. I’m aware of the loss of cash flow at the expense of my wife’s piece of mind (again, my mistake for allowing it).

My wife and I have owned our Multifamily for over 2 years and currently decided to rent to my Aunt for under market value. I was not a BP member before doing so and I've only recently (2 months) begun educating myself more on real estate investing and such.

(Side note: I'm aware of horror stories of renting to family and have taken all of those stories into consideration.)

I've read that if renting under fair market value, the tax deductions are no longer possible. 

Aside from repair/maintenance deductions, what other deductions are no longer possible? (Will mortgage interest no longer be deductible as well?)

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Rent Info:

We were last renting our unit for $1,050 and my wife was eager to get a friend/relative into our unit after our last tenants for piece of mind (I wish I stuck to my guns and refused). We are currently renting it out to my Aunt for $800 but she said she was willing to pay more ($900-1000).

However, I believe the fair market value of rent in our area has recently bumped up to $1,100-1,300 for a 2bd/1b at 900 sq ft. I plan on getting more accurate info from real estate agents in my area.

Is there a way I can get her rent slightly below fair market value and not lose the tax deductions? (Such as a "good-tenant discount" of sorts?)

Thanks

- Sy

@Anthony Thompson thanks! I’ve gone through the guide as well as quite a few podcasts and the book on real estate investment. I will definitely be checking out the REIG in Warwick during their next meeting.

I’m new to BP and very eager to learn and connect with some investors in my area of RI (Cranston/Providence/Warwick). My goal is to begin wholesaling to improve my ability to analyze properties, find good deals, learn rehab costs, and learn the process of a closing. Eventually I’d like to invest in some single and multi families that need some rehab and then rent them out. I currently have been “house-hacking” with my wife for the past 2 years, so I have some experience with being a landlord.

Hi @Raymond Lewis! I’m actually in the Providence/Cranston area. However, I am fairly new to BiggerPockets and real estate investing. My goal at the moment (like many REI noobies) is getting into wholesaling. Not as a “quick money” method but to improve my ability to analyze properties properly and learn how to find good deals. I would love to be able to help out in any way I can. I’m very eager to learn more and get in the REI game.