All Forum Posts by: Ben Kornblatt

When is the next meeting?

Thank you all for your insight and help in this quest! I really appreciate it!

Ben 

Hello BP community,

I was hoping to ask the veterans and those more experienced than me on this subject.   The question is in regards to depreciation with multiple properties. Lets say for example you have two SFH worth 150k each, and the land value is 25k. The depreciation for each property would be 125k / 27.5 = rounded to 4.5k for depreciation each year. Lets say property A has a 30 year fixed mortgage and property B is paid off. If they both rent for 1000, but property A cash flows for 200 per month (with mortgage, etc.) and property B cash flows 1000 per month (no mortgage). 

My main question is: can you use the depreciation of one property towards another? Is it a total amount for the year? In the example you have 9k (4.5K+4.5K) of depreciation each year but 14.4k total cash flow (2.4k from one property 12k from the other property). Are you able to depreciate the 9k from the total 14.4k cash flow so one is effectively being taxed on the 5.4k total (14.4k-9k)? Or is it separate? property A taxes: 2.4k-4.5k = (-2.1k potential tax losses not realized) and property B 12k-4.5k = 7.5k  Sorry for the lengthy message, but any insight would be greatly appreciated! 

Thank you,

Ben 

Thanks for the heads up!

Hi Chase, 

I'm relatively new to the area as well and I hope to make the meeting. I think it would be great to have a monthly meeting to brainstorm ideas. Please let me know if the time or location changes, otherwise I'll put it on my calendar. 

Thanks!

Thank you for your thoughts and input! 

@J Scott

Hi J Scott,

I realize this is a general question and without hard numbers it falls under the category of it depends.

What are your thoughts on turn key investments. For instance, a brand new townhouse construction that is immediately ready to begin renting. Yes there is a premium in the purchase price, however hopefully there is little to no repair costs for the first 5-10 years. With a 30 year 5% loan after putting 20-25% down there is decent cash flow. The purpose would be a buy and hold scenario with the intention being a long term investment.

Comparing this vs buying an older property that will take a decent amount of work and time to bring up to speed. I apologize if you have answered this earlier (if so would you share that link).

Thank you for your thoughts and input,

Ben K