All Forum Posts by: Anthony Patel

Hi everybody!

So, both my wife and I are full time W2 employees and are in the 24% tax bracket, and I came across the short-term rental loophole which sounds really amazing for taking write offs and using them to reduce your W2 taxable income, but also equally difficult to qualify for, unless you are within a short driving distance to your property.  

Has anybody been able to put this into action in an owner-occupied triplex (or duplex/quadplex for this matter)? I am currently looking at occupying one of the units, turning one of the units into a long-term rental, and the third into a short-term rental. 

If I were to manage it myself, and have an occupancy of equal to or less than 7 days on average, would I be able to take the expenses that I have incurred in fixing up the unit, furnishing it, and marketing it and write this off against my W2 income? The reason why I am unsure of this scenario is that I know the theory states that this is usually a non-owner-occupied property (someone buys a single family home close to their primary residence so that they can manage it and take advantage of the loophole in this manner). 

Secondly, if this strategy qualifies for the STR loophole, would I further be able to run a cost segregation study on the unit that I plan to STR, in order to take advantage of bonus depreciation? Or would I have to run the study on the entire building? For tax purposes, does anybody have an idea of what this would look like as I would be living in one unit, renting one-unit long term, and then short-term renting one unit to maximize cash flow and write offs against my W2.

Thanks in advance BP!

Hi Jim

Send me anymore details if you have (photos, expenses, scope of work) to [email protected].

Would this qualify for conventional loan? Seller financing by any chance?

Cheers

Anthony

Hi Corky, please send through details of the this deal as well [email protected]

Cheers

Anthony

Hi Corky,

Interested in analyzing deal, please send through info at [email protected], cheers
Anthony

Hi guys

So I am hoping to see if I can get some advice or differing opinions on my current situation. As a person that travels for work a lot, my time in my city is limited to a few days each week, which means I need to stay very organised if I ever want to successfully build a team and flip houses on the side. 

I have a friend who is going to be purchasing a fix and flip from a wholesaler and use hard money to finance the loan, and am looking to provide funds for the construction costs, instead of her taking out a second construction loan, in order for to make a small return on my capital, but more so to be able to be apart of the flip project and learn as much as I can along the way.  

I have heard that getting a lien on the property is one way to have the money secured, but then this is dependent on the hard money lender which may or may not allow a second lien on the property? 

Also I want to be able to go onto the property and see work done and be apart of the project, but does this mean that I could be liable for any issues that go down on the work site because I was physically there? Do any of you private money lenders lend through an LLC? The other thing with creating an LLC is that as this is my personal savings, I want to be able to take out my money if I later on want to buy a house or do my own flip, and not necessarily have my money tied in an LLC as such.

I know there are a number of ways to structure this, but basically the two things I want to know is what are the best ways to mitigate risk whilst lending out for the first time and what levels of protection can you have if you plan on providing PM but still want to be able to be on site of the project and learn along the way. 

Thanks in advance!

@Anna Kampa. I was just there in Bend on Wednesday! The smoke is crazy right now, hope you guys get some relief soon. PNW unite! 

@Kari Koszdin. I know its red hot up here, I know there are still diamonds in the rough to be found, but it just might take longer to uncover. That sounds great, I would love to be able to house hack in Seattle through 2-4 unit M.F's but they are probably the most hardest deals to find period. Will definitely be keen in reaching out to you and finding out more about your experience in this market to date. 

@Kevin R. Thanks alot for reaching out, and yes massive action is what progress is made of, couldn't agree more. 

Thanks Dave!

Howdy all, my names Anthony Patel and I can't wait to start connecting with the amazing network of people from all walks of life that this website has facilitated and brought together. It's taken me a long time to post but I have never felt more inspired and excited about real estate then after plowing through the resources found here.

Originally from New Zealand, my parents previously flipped houses during the late 1990's to early 2000's but never really had a plan on how to go about doing it, and as a result, we most often just broke even or made a few thousand on top, and I never thought I would find myself reevaluating real estate as an investment medium. Fast track to now, and having lived in Australia the past 6 years, both countries have experienced astronomical appreciation and it has left me in awe that my parents sold their house in 2007 before moving to the states.

After finding bigger pockets last year and listening to my first podcast, I can proudly say that I was hooked, and have dedicated a lot of my time outside of working as an Audiologist to learning and digesting tibits of real estate investing (who would of thought this could be so fascinating).

As a new migrant to the USA of 8 months, I am trying to build my credit asap to then purchase my primary principle residence with an FHA loan (especially as Seattle is crazy hot right now) to house hack. However in the interim I'm really focusing on building relationships with people in the industry around the Washington/ Oregon region and then jumping into a project to kick start my real estate investing career. I have some lofty goals that I want to achieve (get my parents retired, replace current W-2 income with rental income, become a multifamily property investing syndicator and help facilitate funding of kick *** heath tech projects), and I know with BP by my side, not only will I have the best probability of succeeding, but more importantly, I'm sure to end up making life long relations with like minded people from here.

Thanks all and looking forward to touching base! Keep up the good work BP!

Churrr (That's cheers in New Zealand :))

Anthony