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All Forum Posts by: Aaron DeLong

Aaron DeLong has started 0 posts and replied 2 times.

Post: How does new tax plan affect REI?

Aaron DeLongPosted
  • Investor
  • Beachwood, OH
  • Posts 2
  • Votes 2

Instant love for any CPAs who do a rundown once plan details are released.  RE comment bove, not premature at all...If you have a mortgage or pay property tax on rental RE, this has the potential to affect you... Thus, the value of the VAST MAJORITY of our RE will INSTANTLY be affected by the details of this plan.

James - Where in New Jersey are property taxes less than 10% of rent?  That seems to be a stretch for the worst state in the nation in terms of property tax rates.  Also, 5.5% of gross rents for insurance seems low as well.  What are your deductables and coverage options?
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Originally posted by @James Masotti:

@Philip Hy - You need to factor all of that into your acquisition. It's the biggest mistake that new "investors" make. They think because rents are higher than the mortgage (or worse yet simply cover their mortgage, tax, insurance) that they are investing. 

Here's a sample breakdown on one of my properties

Rent: $1100

Mortgage: -$437

Taxes: -$96

Insurance: $-61 (I'm currently overpaying on insurance and shopping for a new agent. This should get cut in half at that point)

Property Management: -$99

Repairs/Maintenance: -$88

CapEx: -$88

Vacancy: -$88

Net Total Cashflow: $143