All Forum Posts by: Travis Kumar

BP community,

I have been following BP forever, and purchased my first rental property in May of 2024. On the hunt for a second. Now that I am seeking tax pro's through BP portal, I am hearing that there are NOT mechanisms to offset my W-2 income because it is a mid-term rental, and I make over 150k. I have heard so many times that there are "tax benefits" and "offsetting w-2 income" as one of the advantages of real estate and feel a a bit frustrated.

I lived in the property and completed most of the rehab myself, now its ready to rent. I was seeking counsel for best way to set up LLC and to take maximum advantage of 2024, only to learn not much can be done.

I have been tracking every expense thinking that part of the reason was for some sort of tax impact. Should I seek other opinions or have others found that in the fine print, there really isn't much at first? 

Also, what "tax advantages" or "offsetting w-2 income" are folks mentioning on so many BP episodes as an advantage?

Staying positive because I know the benefits, and I am committed. Hoping for some insight. Thanks all!

 Okay thanks!

The property is scheduled for a foreclosure 3 days prior to my contract date. I assume that once the foreclosure department and short sale department connect, they will opt to go forward with the sale.  

My contract is with the seller, but once we found out it was short sale, I believe there is a short sale negotiator working with the seller's agent.

I have a property under contract, that my GF and I are planning to house hack then rent out entirely after a year or 2. While under contract, the property appeared on a foreclosure site I follow. The date of the foreclosure is prior to my contracted purchase date. My thought is, wouldn't the bank be incentivized to sell at my rate, as opposed foreclose on it?

Does this provide an opportunity for me to further negotiate, if the bank re-opens negotiations? Or does it present risk, that if appraisal comes in higher, the bank can ask for more, as well as take additional offers.

My understanding is, they can accept my offer, or if the appraisal comes in higher than my offer, re-open negotiations. 

Trying to understand if I have leverage here. It appears to me I do, but I am brand new to this so I am unsure. 

Any thoughts are helpful. Thanks!

 Ben, thanks for the advise! I appreciate it. It's the direction I was leaning, and the BP community continues to provide support as I march through these decisions. Great point about the lender too.

Thanks!

I am so close to being dialed in on a strategy, but could use some help.

I am mid-30's, good job, and am looking to invest in my first property with my gf. I have 30k I can deploy in cash, and am pre-qualified with 2 lenders for up to 350k FHA 3.5% down.

The two strategies that seem to fit our goals, are house hacking a multi-unit, or BRRRR a townhouse. Would love your take on what you would do if you were in my situation.

I want to play the long game, and acquire rentals over time.

The only requirement my partner has placed is that we don't share a living space with strangers. Meaning house hacking a townhouse or SFH don't align with our current goals.

Other than that, the goal is to amass as much equity as possible, without over-leveraging ourselves.

If you were starting over, which would you choose?

Any insight greatly appreciated!

 This is very helpful, thank you. Even though I wont be able to find cash flow, I assume part of my house hack strategy should be to use rents to eat into as much of the monthly payment as possible. I appreciate the insight.

I am currently looking to house hack a multi-unit property in MD, VA, PA. I just submitted to a few lenders recommended here, and have begun speaking with realtors. My question is, some properties I see have 4 units that are currently rented. They then also have space I can convert. Cash flow is very hard to find, but they look like opportunities to force equity and cash flow. Assuming i can get the permits, can i buy a 4 unit, rent all 4 units, and convert the basement to a live-able space for me? Does this then turn it into a 5 unit, or once i purchase, I am free to do this. If I should be thinking about this problem differently, I am open to all insight. I know there are other ways to make money, and cash flow isnt everything, but I think if I can convert an area and rent current units, I will be further ahead. Thanks in advance for any feedback.