All Forum Posts by: Aaron Zimmerman

Depending on the complexity of the returns and how organized you are for your accountant, that seems to be a very reasonable price to pay assuming the work is quality. In fact, the fee could probably be upped especially given the potential complexity of the sale for 2020. 

Drew- I'd recommend figuring out where you'd like to live first and then explore there. Chicago has a rich culture and a variety of neighborhoods that appeal to all types of people. Let me know if I can be of any assistance in your house hacking journey. 

I would probably say to look west and see what is out there in terms of multi-unit properties. Areas such as Avondale, Irving Park, Logan Square, which are a little outside the city center but are still close to the action. You could even buy a fixer-upper with that amount of money, refinance and do it all again. 

1. Detail oriented

2. Knows the tax code for real estate/other business deductions

3. Educates you on the process 

4. Understands your goals with real estate so you can acquire more loans (if that's what you desire)

What is your business plan with the property? Perhaps the 4% cap rate may be higher in the future. 

One of my friends has a condo where he rents by the room. Feel free to PM and I'd be more than happy to connect you two. 

I agree with what has already been said. In terms of action steps, you need to know where you're going and then your CPA should be able to help advise you, not the other way around. I'd take a hard look at where you're at currently and where you'd like to be at in 1, 3, 5 and perhaps 10 years. I think it's also important to think about where your tax rate is going (likely up given your increase in income and individual tax cuts set to expire in 2025). Therefore, is it worth it to take extra depreciation now or later when you're in a higher tax bracket? There's certainly a lot of things to consider with tax planning!

@Michael Johnson- I currently have a four plex in Irving Park and happy to share my experience with it if it helps your decision. I'd recommend getting involved with some local groups in Chicago and see what other people have done. My experience has only been positive with these groups. Please PM me if I can be of any help! 

Correct

I would have to agree with the people saying to not do it. However, if you do, I'd recommend getting multiple contractors to bid the project. There are plenty of other heavier value add opportunities for $100k or so that might be better suited for you!