All Forum Posts by: Amit Saini

Thanks Natalie!

Guys - huge thanks for the prompt response. Very helpful.

More specifically:

Do you think that the Schedule E, as a stand alone, qualifies for the 20% discount on taxable income as provided under the tax reform act passed in December of 2017? Or to qualify for this discount the Schedule E taxable income must come from a passthrough (i.e. LLC K-1)?

Getting conflicting information on this subject. Both husband & wife on W2 income w/ one rental property.

Does creating a LLC help with a lowered tax rate for the rental income? Very sparse information on this subject.

I appreciate any response/guidance on this subject.

Amit

PS - CPA says rules are "still evolving" but generally recommends LLC formation to maximize chance of lowered tax rate.

Would not sell condo unless you feel the HOA outlook is very bad (i.e. big special assessments on the way).
You also benefit from lower financing cost on your primary condo - when you convert that to rental, the interest rate does NOT change - this gives you an advantage (in addition to P13 lockdown).
You have enough reserves to come down with a downpayment for a SFR in an up & coming area!
All the best!

@Pavan - take a look at East Bay markets. You should (still) be able to make something work out. Work with a realtor who knows the EB market well. There are several condos/TH's that can be had in your price range. Good luck!

Current rental property investment rate 4.25% for 30-year fixed.

Getting the same rate for the next deal (ARM is at 4.15% for 7/1) - very narrow spread that is not appealing

Non-investment being quoted at 3.75%.

I see some investors getting some killer deals <3% - is this still true in todays market?

Thanks in advance!

Amit

@Sandeep S. - Brilliant insights & thanks for sharing! May reach out to you with some more questions, but that's all for now :)

@Sandeep S. - Thanks again, very valuable info. If I may ask a few follow-on questions:

1. What is the logic for number of units > 50? Is this a proxy for more stability in the HOA should a few units default?
2. How do you stress-test your portfolio with a lot of ARM/interest-only loans. Mentally, how do you prepare should rates rise and rents don't rise correspondingly? Shed some units? Put more cash down I'm trying to figure out the playbook.
3. Do you stagger the ARM loans to give a safety net? 

My situation is that I have one investment property in L'more & am looking to build a portfolio of more. My financing has been traditional 30-year fixed (4.25%). While it nets me a small positive every month due to a large down, I'll have to get more creative on subsequent deals, therefore your approach is very helpful. 

@Romil S. - Sorry  that I've asked more questions on the thread you initiated. I'm a recent first time landlord too, I found this link helpful: https://www.biggerpockets.com/renewsblog/2016/07/3...

The most important thing I learned is to have a dependable realtor with a good network of handymen/contracts in the area you're buying. I do property management myself (really - it's about directing resources rather than me fixing a toilet myself, which I can't do anyway). I feel the closer you are to the business, the more you learn. Don't hesitate to ask me questions (admittedly - very little experience and not in the same league as other investors on this page).