All Forum Posts by: Andrea Descargar

Welcome to the party! I specialize in working with Canadians that own property down here (I live in Palm Springs, we might be the snowbird capital of the world?). I'm going to reiterate what's already been mentioned above, but I'm going to actually give you examples of why it's relevant to you to find a U.S. tax professional.

1 - You're going to need to file U.S. taxes once you have property down here, there's federal filings, state filings, and sometimes local filings too

2 - Tons of tax treaties between the U.S. and Canada that are easy to miss and can cost you a lot of money (important one with rentals - effectively connected income - if the professional you talk to doesn't know what this is, run away)

3 - The amount of days you spend in the U.S. needs to be tracked and if you go over a threshold, all of your worldwide income could be taxable by the U.S.

4 - Selling real property means up to 15% of your sales proceeds might not be available to you for years (FIRPTA)

5 - Lots of nuance at the state and local levels, which both want to take as much money from you as possible

Main takeaway here is that you should find a U.S. based tax person. I've unfortunately seen too many examples where a Canadian investor trusted their Canadian accountant to handle all the U.S. compliance and it cost them a lot of headaches and money.

Great advice!

1 Vote

Detroit, Michigan

Hi all,

I'm stuck and I don't know where to start or how to strategize a game plan on how to build my portfolio. I currently have a small portfolio but they are single family homes.

I'm not afraid to buy, in fact I hate money sitting in the bank doing nothing for me. I have a team of 2 other investors, one of which is an experienced contractor so we have that department taken care of.

Is there any way to find cash flowing properties off market? The goal is to buy 2-3 duplexes, tri, or quad units every year and so far I have none for 2024.

We tried to place an offer on one but deal fell through, and another one had a lot more work than we anticipated so we pulled out. Any advice on strategy for multifamily properties would be helpful in terms of narrowing them down, and areas in Michigan to look in. We're currently looking in Jackson, Brighton, Howell, Ypsilanti, Chelsea, Fenton, Whitemore lake, and Fowlerville (Michigan).

3 Votes

Ann Arbor, Michigan

Quote from @Joshua B.:

Those are good areas, Andrea. I've done deals in all those cities. Ann Arbor is going to be the hardest to find a deal in by a good margin. Taxes are brutal and prices are some of the highest in Michigan. You'll likely have the most success in Brighton as there isn't much rental inventory and prices are reasonable. You also should be able to find a SFH fixer in Royal Oak (lots of 3beds/1bath/1100sqft type SFH inventory) but not sure there's as much in terms of dated condos to BRRR.

Thanks for the feedback! Really helpful. My only concern with Brighton is whether or not it's a high demand area for rentals. I would assume with today's interest rates perhaps that may spike interest in more rentals.

0 Votes

Ann Arbor, Michigan

Hi all,

Just starting out small until I work my way up to apartment complexes and commercial units.

For now, I'm analyzing condo rentals in the Brighton, Ann Arbor, and Royal oak area. Any thoughts or suggestions on condos/duplexes versus single family home rentals?

TIA

2 Votes

Ann Arbor, Michigan

Quote from @Khoi Nguyen:

Looking for other Novi/Ann Arbor Michigan Investor - networking

Hi Khoi, I'm new as well. I'm Canadian but my husband is American so the US real estate is all new to me.

Im currently starting small with condo units. Have you purchased anything yet?

0 Votes

Ann Arbor, Michigan

Quote from @Andrew Moore:

There are a number of things you will want to consider before purchasing a property. Most of these items can be determined during the due diligence phase of the transaction.

1. Verify the zoning/land use - if you are buying vacant land, and it isn't already zoned residential, I would make sure you (or your agent) are touching base with the township to verify that there is a good chance it can be rezoned. If there are other developments adjacent to the property, there is a good chance you could be able to rezone it. If not, and say it is next to industrial (or some other type of zoning that isn't residential), it may be a bit trickier to get the municipalities approval.

2. The minimum lot size requirements, setbacks, & how many splits may be available - This will be in whatever the municipality it is zoning ordinance & is usually available online. This will determine how many units you are able to develop. You would hate to purchase it thinking you can build them on .5 acres, just to find out they must be 1 acre, and now you are developing half the number you thought you could.

3. Is the land actually buildable - You will need to do a perc test (possibly some environmental testing). This will help you determine what parts of the land are able to be built on. If 30% of the initial parcel can't be built on, it is going to determine where you may be able to build on that lot.

I'm happy to be a resource for you should you have any further questions! Best of luck to you!

Thanks for your help! We do know it is zoned for residential but there seems to be some restrictions on the type of house we build and how wee build it. For ex) our garage has to be attached and not facing the road. Kind of odd since there's only 3 other homes in the area, and there would be a long drive way. I will keep your contact in mind!

0 Votes

Ann Arbor, Michigan

We're buying up a few acres throughout Michigan, based on location and potential future developments.

Someone said that if we buy a lot and break it up into 5 potential new build homes, that would then be considered a subdivision.

My question is, is there anything to look out for or consider when purchasing lots?

We will also be building our home on one of the lots. Looking to connect with an investor-focused real estate agent.

0 Votes

Ann Arbor, Michigan

Thanks for your input!

1 Vote

Detroit, Michigan

Any advice on how long you should usually wait until refinancing a property after purchasing? I'm new to this and wondering if there is a general rule of thumb on when to refinance the property.

The property is in a great location in Royal Oak, Michigan, and did not require any repairs except cosmetic things like new paint.

Thanks

1 Vote

Detroit, Michigan

All Forum Posts by: Andrea Descargar

Andrea Descargar has started 4 posts and replied 9 times.

Post: New to US market

Post: Feeling stuck on purchasing multi-family properties in Michigan

Post: Investments in Royal Oak, Brighton, and Ann Arbor Michigan

Post: Investments in Royal Oak, Brighton, and Ann Arbor Michigan

Post: Looking for other Novi/Ann Arbor Michigan Investor - networking

Post: Purchasing lots to build on, what should we look out for?

Post: Purchasing lots to build on, what should we look out for?

Post: Looking for advice on first BRRRR investment property in Michigan

Post: Looking for advice on first BRRRR investment property in Michigan