All Forum Posts by: Andrew Reyes

Thank you all for the advice and thoughtful responses. @Christopher Phillips and @daniel akerman I agree that I have a lot to do in order to fine tune my strategy. I also know that I have a lot to learn about owning a property. For this reason my current finance related goal is to close on a property that produces positive cash flow and upside potential. Based on the responses I got, some folks are looking to PA for this. Have you sold any properties lately that fit this broad net that you might be able to share that I can analyze to fine tune my desired metrics? I understand that all of the financial metrics you mention could vary depending on the market the property is in. @Paul LaSpina and @Ahad Ali I would greatly appreciate the opportunity to connect at some point soon. @odie ayaga I agree that my team will most likely be my most important asset. You sound well informed on the matter. Would you be able to connect offline to discuss your approach further? @gary swank thank you for the recommendation to look into Pittsburgh.

Michael Plaks Jeff Kehl I have been through the weeds on this provision in particular. As Michael said, there is no real guidance in tax reform. Although this provision and the new interest limitation under section 163(j) are both high priority for treasury to issue guidance, which is not expected until next year. IRC Section 199A(b)(1)(B) includes 20% of Qualified REIT Dividends - a defined term, which excludes section 857(b)(3) capital gain dividends and section 1(h)(11) qualified dividends - in the definition of “combined qualified business income amount”. Assuming this is the appropriate deduction amount (i.e you are not limited under section 199A(a)(1)(B) for taxable income in excess of net capital gains and qualified cooperative dividends) you get the 20% deduction for these qualified REIT dividends. Furthermore, this amount is not subject to the limitations based on W-2 wages and/or unadjusted basis of all qualified property found in section 199A(b)(2).

Hi All,

By way of introduction, my name is Andrew D Reyes. I am a NYS CPA/Tax Consultant at a Big 4 accounting firm in NYC. I work exclusively in the Real Estate Industry currently and I am looking to start investing in Core+/Value-Add residential properties in the NYC Metro area.

From listening to the BP podcasts and reading books/articles, I believe that C+/B- properties near growing cities would be the best target for my goal of generating passive income and building wealth through capital appreciation.

I have limited funds currently, but may be able to raise cash from friends/family if I find a deal.

A few questions to this group:

1. Any suggestions for target markets?

2. Any suggestions for brokers/property managers/contractors in NY, CT, NJ, or PA? Any other states I should consider?

3. Any deals you recently closed or are working on currently that you are willing to share the details? I am looking to analyse more deals.

Any other suggestions or like-minded individuals looking to connect, please reach out or reply to this post.

Best,

Andrew

Thank you, @Jennifer Delmore. I understand your concerns, coming from NY I imagine my sense of cost to enter the market is skewed. I would love to hear your thoughts on midwest cities you think are reasonably priced.

Zip Code: 19146

@Paulette Midgette @Account Closed Updated deal info. I appreciate any thoughts:

Purchase Price: $465,000

Upfront costs: $71,070

10% LTC financing: $46,500 Down

Closing costs: $13,950

Legal costs: $500 (seems low)

Profetional Photography: $120

Furnishing: $10,000

Airbnb Revenue
Average daily price	$170
Days in month	30
Monthly price multiple
Jan	56%
Feb	58%
Mar	75%
Apr	94%
May	98%
Jun	100%
Jul	93%
Aug	89%
Sep	83%
Oct	98%
Nov	94%
Dec	79%
Annual RevPar	$51,875
Monthly RevPar	$4,323
Annual Airbnb Rent Escalator	3%
Monthly Rent From Parking	$0
Total Gross Rent	$51,875

Expenses
Property Taxes	Annual	709
Insurance	Annual	2,232
HOA	Annual	0
Waste Removal	Annual	300
Adminstrative	Annual	200
Advertising	Annual	0
Maintenance/Repairs	Monthly	150
Other Expenses	Annual	0
Airbnb
PM Fee		15.0%
Insurance Premium	Monthly	70
Restocking / Cleaning	Monthly	150
Utilities	Monthly	200
Internet	Monthly	100

@Bob Collins Multifamily buy and hold, preferably a Class B value-add with 3-4 units. What is the price per door that you generally see in the Denver Metro Area?

Hi future fellow Coloradans,

My wife and I are moving to Denver in the coming months and I want to take this opportunity to start my REI investing.

I am targeting properties in the $80k per door range. Do any of you have suggestions on areas to look at, or lenders, agents, PMs to connect with?

I appreciate any advice/responses!

-Andrew

Hi All:

I have a group of like-minded investors in NY that have has a great deal of success  with short-term rentals (AirBnB). They are expanding to PHI and have approached me about partnering with them on a deal.

Below is the info I have so far, looking for advise on what I am missing from a data standpoint, and what I should know about the market in general.

Property type: Townhouse

Listing price: $550K

Layout: 2bd/2ba

Property taxes: $13K

Income expectation: $200-$300 per night

Leverage: approx. 85% LTC

What is a good estimate for the following:

Financing fees

Closing costs

Vacancy rate: (I was told 80% is a conservative estimate for the area)

Repairs & Maintenance

Cap Ex

Thank you all in advance for the advice!

As a CPA myself, I would say no. What you really need is an educated and sophisticated adviser that can help you navigate the IRC and avoid common pitfalls. While most CPAs specialize in compliance (i.e. tax return preparation) and most attorneys specialize in consulting (i.e. tax planning) you should make sure that the person you hire has the necessary knowledge and experience to assist you in accomplishing your goals. If you need a tax preparer find the best tax preparer, if you need a tax adviser find the best tax adviser.

Note that a CPA, Attorney, or IRS Enrolled Agent (EA) can all represent you before the IRS in controversy cases. While an Attorney can represent you in all courts, a CPA or EA can represent you in Tax Court if they obtain a USTCP designation (US Tax Court Practitioner).

Do not be fooled by someones credentials, make sure that you properly vet any professional that you hire.

Best of luck!