All Forum Posts by: Andrew Yu

Try to find a local bank. They are usually best to work with. You can expect 20-30% down usually for an investment property.

I consulted with my CPA, who advised that the policy loan should be transferred to my LLC for private lending purposes. This approach allows me to deduct the interest paid on the policy loan from my taxes. However, I will still be required to pay income tax on the income generated from my private lending activities.

This question is about Infinite Banking concept. For the tax experts here, when I take a policy loan on life insurance for private lending, how should I structure it to minimize taxes?

@Santosh Nalu @Shalin Shah @Naeema R. @Vaishnavi Thaker

Fast forward... I quit my software engineer job last June. Became a full time real estate investor, primarily focusing on wholesaling, doing 5 to 10 deals per month. Own a few long term rentals. Also dabbling in Short Term Rental a little, about to acquire my 2nd STR property.

For people that are on H1B status, I would advise you to start off by doing HOUSE HACKING. Either buy a 2-4 plexes, live in one side and rent out the other side(s) to your friends. Or buy a big SFR, maybe 1600 - 2400 sqft, with at least 3 bedrooms, rent out each room.

After that, you can work on BUY & HOLD. The great thing about this is you get to enjoy the cash flow from your asset, but also enjoy its appreciation over years. And this is not considered Active Income by IRS. You can pretty much buy as many long term rentals as you want. Make sure you have hire Property Manager to manage them for you. That way you're 100% hand-off, only collect checks. 

Stay away from WHOLESALING, FIX & FLIP, and SHORT TERM RENTALS. These are all considered Active Income, unless you're just a passive investor in the deal that fronts the money without any other work involved. Hope this helps! 

*DISCLAIMER: I'm not a CPA or attorney. 

Great @Natalie Kolodij! That's the answer I was looking for. I want the cap gain exclusion but also get to deduct business expenses. Thanks for clarifying it for me! 

Thank you for the response @Ashish Acharya. Would you say I should just operate it as a sole proprietorship for this then? 

I'm about to make my spare bedroom's AirB&B live. My question is what's the best way to report my income on this and also reduce taxes? Put my home in a LLC? We don't want to miss out on the zero capital gain when I sell my home in the future. What's the best strategy here?

Came across a potential MHP deal lately. It has about 8 to 10 park owned trailers. But they are not livable any more. Utilities are there though. My questions is how to underwrite the value of this MHP? Is it just land value now? Roughly about 1 acre inside city limit. 

Nice to have you @Courtney Michael

@Justin W Sleeper I believe you're looking for Broker Price Opinion on a certain property? I think any local real estate broker can help you do that, costing you about $300 or so