The Tax Question

[Dan D.]

So I am just starting out here and in the process of educating myself. I think the BRRR method is great; but, I don't have the resources set up to execute this strategy (yet). I also make decent money and really need the tax benefits of owning RE.

A poster pointed out the large benefit of depreciation and this has caused me to consider buying in A and B neighborhoods for smaller cash flow (with financing) and potential appreciation vs. B and C areas cash at lower price points (30-50k) and higher cash flow.

At the same time I don't really want to pay "retail" for my properties via turnkey.

Thoughts?

[Mark Holencik]

I plan on paying more taxes next year, then I did this year. But I will not pay $.01 more then I need to. I do what I do to make the most money I can. I let the CPA tell me how to structure and record my expenses in a way that reduces my tax liability to the least legal amount allowed. 

This year I switched to getting a paycheck every week. The accountant saved me way more then I pay him in a year. That will be a savings every year. There are a lot of ways to make/save money. 

I just talked to him about something I read about. He told me it would not be worth the effort. Sometimes he says that it is a legal deduction, but the documentation is exstensive and can trigger an audit. 

There are times that there is little to no cash flow, but when the accountant gets done you earn a good return. Only your accountant can tell you this, because your whole return will dictate how some things are handled.