All Forum Posts by: Andrew M.

Can I use it reduce my taxable income from the salary I get from my current job? 

Hi all,

I'm purchasing an investment property next month (December) (2 units). I want to maximize my tax savings when I file my taxes next April, so I was wondering what I should do til the end of 2022 to maximize my tax savings. I will be renovating this property so I'm assuming costs associating with improving the building are tax deductible? What sort of documentation should I keep when it comes to filing my taxes next year. I'm also purchasing a pick-up, which I'm hoping to tax advantage of Section 179 (vehicle over 6k pounds).

If anyone is willing to have a quick discussion, I would very much appreciate it. 

Thanks

I purchased my investment property early 2022, so I still havent spoken with a CPA. Is there any big qualifications I should consider? Does the vehicle need to be purchased in full or can it be financed? 

How can I take advantage of this write-off? 

Some background information on my situation. I recently set up an LLC for the purpose of transferring my rental properties to it. Currently, my personal residence and investment property is under my personal name. I'm looking into purchasing a pick-up that is over 6 thousand pounds. It will be used for both personal use and managing my property. What do I need to do to take advantage of this write-off? Here are a couple questions?

- Do I need to purchase the vehicle under my LLC name?

- Do I need to purchase commercial vehicle insurance?

Am I thinking this is too good to be true, or is this actually viable? 

 So what would be the downsides of using a traditional loan? The owner of the property I'm looking at is not in any hurry to sell, so I don't need closing to happen ASAP. To the point where my money would be tied up in this deal, wouldn't I get the full/most of the downpayment back when I cashout and pay off the original loan? So theoretically, wouldn't my money only be tied up for 6 months?

I think what I need to do is reach out to local banks and discuss with them the fees/penalties for paying of the loan and then doing a cash-out refinance

I'm looking to purchase a potential 2 unit apartment building, but trying to figure out financing. I have enough cash for a 20% downpayment, using traditional financing, but I do not want to tie up all my money in this property since I would potentially want to purchase another property after I rehab this one. The question I have is, are there downsides of purchasing a property with traditional lending and then do a cash out re-finance after the rehab is done? I'm a little hesitant on using hard money to purchase this property and incurring even higher interest rates than a traditional lender if i have enough cash for a 20% downpayment. Input and advice would be appreciated. 

Thanks for the info Sarah. 

The main issue that I'm seeing is finding a property that would be a good candidate for a flip. (ARV x .75) - Repair Value = Lowest Purchase Price. It seems like most properties that are listed on the MLS have potential, but when I factor the renovation cost, it doesn't leave much for profit. Do you guys mostly focus on foreclosures and auctions?

I'm looking to start investing in real estate and its a big decision, so I was wondering if anyone had any recommendations on your first flip. I'm looking for advice as to where to start and if possible a mentor. Does anyone have any initial first steps and some advice on your first flip

About Me

I'm a 29 year old working professional. I've been working in tech since I graduated college. For the past couple of months, I've thought about how I dont see myself working in this industry for the rest of my life. I figured I might as well focus my career on something that I enjoy. I have experience with renovations, since I completely renovated my condo (demo, tiling, flooring, cabinet install, plumbing). My parents also own a couple apartment buildings, so I've been renovating managing them with my parents. 

Financials

I currently own my condo, and have around 55k of equity in it. My current salary is 140k a year and I have around 120k saved in my bank account. 

Real Estate Goals

I really enjoy the construction aspect of real estate, so that's why I'd like to be more hands on. But I do realize that it makes the most sense to hire construction out to a GC or subs. I would initially want to start off in flipping houses in the chicagoland area and eventually have a combination of rentals while still doing flips.