All Forum Posts by: Brady Ascheman

@Natalie Kolodij  so if you are a "Real Estate Professional" your rental becomes non-passive and the rental income is subject to SE tax?

Hi everyone, when meeting with my CPA recently I was instructed by here that if you obtain "Real Estate Professional Status" as per the IRS rules then your rental income become "active" instead of "passive" income in the eyes of the IRS. She then stated that when it becomes active income it is subject to the 15.3% self-employment tax. I wanted to get some insight from others on if this is true since I can't find a good answer on the IRS website, and if it is true why does anyone want to gain real estate professional status?

Hi, Jaycee 

The deal makes sense for me after accounting for all expenses including vacancy, cap ex, and repairs. I know I can easily find a qualifying tenant who will pay $1,000 per month if I don't renew a lease with the existing tenant. I was just wondering if I should keep this tenant despite not quite meeting the 3X rent rule for her income if I bring the rents to market rent. 

HI BP,

I am currently looking at buying a single family rental property that is currently rented. I personally know the person that owns the property and am close friends with him. He has informed me that the tenant has never missed a payment and has not caused any problems. When I looked at the house they kept it very clean. However, the property currently rents for $850 and market rent calls for at least $1,000. I know that the tenant currently makes $33,144 gross a year which would be $2,762 a month. This would not meet the 3X monthly rent rule at $1,000 a month. Do you think I should not renew the lease when it is up in April and find a new tenant or since it is very close to the 3X monthly rent rule let it slide?

Thank you in advance for everyones help with this decision. 

Hi everyone,

I have recently found it very difficult to find any long-term rentals that will cashflow. I have been looking into trying mid-term rentals due to the increase in rent that you can charge, but I don't know where to start. Was looking to connect with anyone that is already doing mid-term rentals so I could pick there brain on the topic. Thanks!

My goal is to reach financial freedom as quick as possible. Which would be done by using the cashflow from RE properties. I am trying to figure out if I should also max out my own personal Roth IRA in the S&P or just use all my money towards RE. Would love peoples input on this thank you.

Hi everyone,

I was intrigued with the bigger pockets podcast show #968 Making $10,000/ Month PER Rental with These Guaranteed Cash flow "Contracts". In this episode it talks about rental arbitraging many units in apartments and then being awarded government contracts where you house a large amount of government employees  and the government pays you well over market rent. I was just curious if anyone on here actually does this, and if so if you would be interested in telling me how you do it.

Hi everyone,

I want to try renting out apartment units and then renting them out on air bnb and profit the difference between the rent and the STR income. Was looking for anyone else who has had success doing this already and would love to pick there brain about it!

Hi everyone,

I was just curious if someone could explain to me how they go about finding tax liens they invest in. I would love to connect with someone that currently does invest in these and hop on a call sometime if anyone is interested in teaching me how they do it. 

Thank you!

Hi everyone, I was under the assumption that when you invest in real estate and you run your real estate through your estate that the capital gains tax dies with you and your heirs can sell the properties tax free upon your passing. I was told by my accountant that this is true, but have been told by some fellow investors that it is not. Any insight into this?