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Updated over 10 years ago on . Most recent reply

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Ronald Perich
  • Investor
  • Granite City, IL
301
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658
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Continuing to learn about rentals - taxes?

Ronald Perich
  • Investor
  • Granite City, IL
Posted

So I have been around BP for about a month now. Every day I learn something new, but I don't get to post a lot because I usually look at the site on my Android device. Unfortunately, it doesn't work so well with BP for posting purposes.

I have also listened to a podcast at least five times a week. I'm up to show 42 and have learned some new stuff about real estate and about being an effective leader as well. I can't thank @Joshua Dorkin and @Brandon Turner for these valuable tools.

Onto my question...

So there has to be added benefit to a rental beyond the $100/door I typically hear about. I understand the tenant is helping to cover all of your costs and everything, but it just doesn't seem to me to be a good way to earn a living until you get up into the high numbers of units.

I'm really curious about the tax benefits that a rental might hold. Just some rough estimate about how these figure into the whole equation. I remember one podcast talking about using rentals to offset earnings on wholesaling... How does that work?

Appreciate the insight and the great site!

Ron

  • Ronald Perich
  • Most Popular Reply

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    Darren Sager
    • Investor
    • Tampa, FL
    1,685
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    Darren Sager
    • Investor
    • Tampa, FL
    ModeratorReplied

    I would also add that there's a large tax benefit to doing cash out refi's because the gov't doesn't look at it as you taking your profit out.  The reason being is that you're borrowing the money.  Its a loan and "technically not your money" even though you have the cash in hand.  In essence its like getting a tax free money to use.

  • Darren Sager
  • 862-208-2287
  • Podcast Guest on Show #48
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