Homeowner · Seattle, WA · Member since 2022 · 2 posts · 1 vote
We bought and moved into our first home December of last year. I know. We've lived there and are looking to start renting either part or all of our home as we move further into investing. I've been trying to learn what I can about the taxes portion of renting out but most of what I can find is specific to BNB or other programmed STR and complete property STR/LTR.
Is there a resource I should be reading or watching/listening to that can inform me more about what I need to know? I am specifically trying reduce tax burden in a legal way and open us up to more possibilities in investing. Right now I can rent the entire home for approximately the cost of mortgage plus 5% each for maintenance and vacancy if I self manage. It will flow a whopping 100 or so monthly. Nothing to get excited about at all. Hahaha.
So here I am asking the smarter and more experienced people what I need to know to go forward. I don't know if it matters, but I am in the Seattle area and have a VA loan where we put down 0% but have overpaid each month about 10%.
The big deductions: mortgage interest, depreciation, repairs and improvements, professional services (property management, accountant, etc.), home office expenses (software, marketing signs, etc.), marketing costs, landscaping
You can talk to a CPA and get some advice. Read the book "Tax Strategies" in the Bookstore, but it ticks me off that they write a book like that and then write a second book with "Advanced" tax strategies!
@Tim Thompson Hi Tim, Congrats on you Investor journey. Happy to help and answer any questions you may have. Feel free to reach out anytime. Sending PM now.
Cash flow seems okay if you originally got it at a 0% down VA Loan and you are already factoring in reserves such as CAPEX, vacancy, repairs. You might cash-flow more if you refinance at a later time that has an overall lower monthly payment.