Going to FL from NY New Business Rental Startup Strategy BRRRR

[Michael Cioffi]

Ok so here we go....I personally am a consultant and wife is into real estate. We currently reside in NY and are tired of high cost living and being taxed to death.(No we cant move to PR or islands wife wont allow :) ) We want to start getting into real estate rentals and need help designing our strategy. Our current situation is we are from NY and have a 1 year old. For the next 4 years we would like to live in FL for 7 months a year and NY area for the remainder. We are currently NY residents so would change domicile by year end 2020 to claim full time residence on 2021 returns.

Current Strategy thoughts: Buy a home personally in FL to become our personal residence. At the same time setup a a real estate rental company in a state that Bigger pockets community recommends. We then have purchasing power for a multi unit in NY area that we would have mix of longer term and airbnb. We could potentially rent from the corp if we wanted to stay there. All the while building a portfolio in FL region as well)

We would immediately save state income tax and also be able to see if its the longer term play for us. But what happens if we decide this isnt for us and we want to reside back to NY as full time residency and the FL home we need to become part of the rental portfolio? Also, my wife would go for full time active real estate designation as we would grow our portfolio overtime to need to be managed which also helps from tax savings perspective instead of being passive.

I know Im missing some potential pitfalls here but I need to build out the strategy and then execute. Im a noobie in this realm if you couldnt tell but not a noobie to the local markets and multi family housing. I appreciate this community's help on how I can build the proper strategy, understand the pitfalls, and execute properlly.