All Forum Posts by: Anthony Cole

Hoping to connect with a CPA or professional tax advisor that has experience in real estate. Our current accountant is wonderful but has limited expertise in navigating the real estate realm. We are excited to discuss strategies to maximize our returns and grow our portfolio while being mindful of complex tax implications.  Looking forward to any and all referrals!

We own our primary residency in Spokane, Washington and frequently drive to Portland, Oregon to work on our rental property that has needed a lot of work. We have a glorified house hack scenario in Portland where we rent about half of the property out as a mid term and while our travel nurse is working we are improving the second half of the property for a future permitted attached ADU.

We both work remotely and are curious about how long we can stay at the rental before it becomes an issue, wether thats state tax implications or perhaps when our jobs should be notified that were working in WA vs OR? Of course we love our income tax break in Washington and lean towards remaining in our primary residency to benefit from it but the constant driving back and forth is challenging. Most will say just buy a place in Vancouver, WA which we are considering but we want to spend a couple more years in Spokane improving that property well before making any significant moves. 

Hey @David Garner thanks for the advice, appreciate you weighing in. So you're actually supporting the borrow rather than earn model. 

You're right about the assets providing enough profit to repay the debts along with the need to cover your day to day expenses.  

We currently have 6 doors, they pay for the borrowed money along with generating about 1/8 of our day to day expenses. At this rate we'll need about 48 doors to cover the debt and our personal lifestyle. 

Thanks and congrats on all your success!

@Jeremy Kitchen Thanks for the quick response! The inflation component is another plus to borrowing it vs earning it.  In the case it takes you 3 yrs to earn the investment capital it naturally loses value per year, when on the other hand you borrow it and invest it immediately the investment (if made wisely) earns money.

This is only based on the success of the investment of course, which is the risk we take. 

I'd like to propose a simple question. If you have the ability to source investment capital regularly at a realistic interest rate, let's say 7% APR. Is it wiser to borrow the money rather than 'earn' the money traditionally in which you pay 30% income, federal, state, etc. tax on? I realize this is a loaded question and want to keep it fairly surface level to invite as many opinions on this as possible!

Thanks Terrell, your perspective on this aligns with my thought process big time! Totally agree to higher out when I need a GC more experienced. In the meantime approach construction more as a project manager saving me on time and money. 

Awesome thanks Chris, I can see the educational benefits and do agree that the knowledge id gain would be invaluable!

I currently own 3 homes with a variety of construction goals. I've gained a ton of hands on skills over the course of the last 4 years owning these properties and considering applying to become my own GC for upcoming projects to strengthen my position as they become more complex. 

My question is, is there any real benefit to becoming my own GC if I will solely be working on property that I own?