Using Return on Equity to Analyze your Rental Portfolio w/ Chris Lopez

[Chris Lopez]

What obstacles are you facing when analyzing your portfolio? 
Post your questions below!

[Dan M.]

Quote from @Sandy Sawyer:

I just recently discovered Chris Lopez & the equity analysis for deciding how to make my money work the most efficiently. Since I always kind of viewed depreciation as sort of a 2-edged sword, or a temporary blessing from the IRS, I’m still trying to wrap my mind around why this gets added in, since it gets recaptured upon selling the property. Can someone please clarify this for me? We’re small potatoes here in Houston but self-managing several SFRs. I have yet to experience selling one of our properties.

Thanks

 It gets added in like Cody mentioned because things break down and you need the cash now to fix them. Look at it this way though by having the depreciation gives you more money per year at tax time, so if you invest it and make any sort of return on it then your ahead of the game when you sell and pay it back if you opt not to 1031. If your also very strategic and cost segregate / take bonus depreciation where available you can eliminate higher level tax income where applicable.