All Forum Posts by: Barron Peper

@Melissa Zimmermann @Keith Miller Hey y'all - following this thread and also just wanted to ask if there are any updates. Thanks for surfacing the topic! - Whitney (Barron)

Hey BP Community,

I'm one year until my first house hack in Seattle. Overall it's gone beautifully (save the unexpected repairs of every sort.) Looking to start a family in a year though, and can't have a baby and live with 5 other folks. So, exploring some good options, but haven't a clue how to navigate the tax implications.

We live on a 7000 SF lot, and I'm an architect. My plan is to design and build a DADU, and finance it against the mortgage. That's where we'd love after having a baby. Likely to rent it out in a few years when we move. The numbers crunch out fine on a cashflow basis (assuming I keep the construction budget in check.) We're also considering turning half of the primary residence into an AirBnB. So taxes: how do we claim our income from house hacking this year? Navigating capital gains? What if we sell it all within a few years? Is building another unit going to surprise us with fees or taxes? 🥴

The tax side makes my head spin. Looking for a good Seattle (or elsewhere) CPA. Would also just love to hear any wisdom this community wants to share regarding this approach! It's all v exciting.

Designing a house, living in it, and renting the primary seems really straightforward, but we don't have a bucket of cash if taxes surprise us.

Please and thanks! 🙏

David, that's great advice. I have an idea what liability insurance looks like for architecture, but not real estate. Great to consider, and might be worth separating as you suggest... It's exciting to connect with another architect in Seattle.

Cheers!

Barron

Thanks for the input, Yonah! 

 Thanks for the response, Natalie! I'll connect with you directly to learn more. 

Hi BP Community!

I'm a full time architect living and working (as an employee) in Seattle, but am needing to start an LLC for some architectural side-work I'll be doing in Texas. In addition, I'm kicking off my real estate investing this year with a House Hack and plan to aggressively acquire properties in the coming years, most likely in WA, TX, and MT (where my partner is from.)

I'd love to connect with a tax professional, preferably based in Seattle, who can give advise on Real Estate tax law and non-residency tax law for small businesses. I have questions about how many different kinds of work a single LLC can hold (architectural design, photography, real estate, etc). I know that Texas and Washington have friendly tax laws for small businesses, but which is more advantageous to register the LLC? Would it be more wise to register an LLC not in King County?

To everyone reading, HAPPY NEW YEAR. I wish you all prosperity, personal growth, and a lot of fun :)

Cheers,

Barron

Thanks Dave! I dropped into BECU (Credit Union) to inquire about financing options. Do you recommend checking out a major bank/other options before finalizing who to finance through? Any input is greatly appreciated! Cheers, Barron

Thanks Brian. I'm ready to move fast, but not that fast ;) I'm prioritizing gathering advice right now. Cheers. 

 Thanks for the reply, Robert! I'm getting some ducks in a row right now, but perhaps we can connect on the phone before making you drive down? We'll DM to coordinate. Cheers. 

 Hey Michael, thanks for the great input and opportunity to see some working examples! I'd love to grab coffee and see what you're working with - DM me and we'll link up soon. Cheers!