All Forum Posts by: Justin C.

Its all relative... Meaning dont sweat it. Im closing on a house with only on street parking and the numbers make sense. If the numbers make sense, the investment makes sense. My situation means only about a $25-50pm deduction value. And thats only if im being very conservative.

Originally posted by @Account Closed:

Originally posted by @Justin C.:

Noob question... If I'm paying cash for a property... does the math workout to be the same?  Purchase price is $17500 and will have about $25000 invested after renovations.

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Cap Rate:

NOI/Purchase+Renovations

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Is there something wrong here?

Your definition of a Cap Rate is incorrect.

Well... Thanks.  I guess...

Thanks again Ryan

Originally posted by @Frankie Woods:

Nice work @Justin C. !  Keep moving forward and please keep us posted on how things are going for you going forward!  These stories are so inspirational to us "regular folk"!

 Thanks Frankie!

Originally posted by @Wayne Brooks:

No. Expenses for purchasing, repairing to get rent ready, etc. get added to your basis not deducted.  Your depreciation for the year would be about 3%, and prorated for the time you owned it during the year.

 Thank you Wayne

Originally posted by @Paul C.:

You got it right!  Cap rate is the return without leverage.  So by definition, the cap rate is the cash on cash return when no leverage is used.

 woohoo!

Noob question... If I'm paying cash for a property... does the math workout to be the same?  Purchase price is $17500 and will have about $25000 invested after renovations.

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Cap Rate:

$3,120/$25,000 = 12.48%

NOI/Purchase+Renovations

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Cash on Cash

$3120/$25000 = 12.48%

NOI/Cash Invested

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Is there something wrong here?

@Bill G.

This is my post that stemmed from the CPA comment.  Any ideas?

Hi guys,

I received a large bonus spring 2014 and I'm assuming I will owe $3-5k come tax time.  I also am closing on my first property on Friday.  I'm not sure whether I will flip or pursue renting... both numbers are very attractive.  Is there anyway I could offset this tax bill through buying this property?

I tried searching BP but couldn't find anything related.  Feel free to request any additional information that could help.  

thanks in advance!

Well... I need a CPA...