All Forum Posts by: Bruno Mauro

 Yeah I'll be out of the country for less than a year. I just decided to go with a PM cause I was willing to pay for a bit more peace of mind my first go around. We'll see how things fare a year from now.

Hey all!

Think I've come to a decision:

Going to keep the unit, I can afford subsidizing the cost since I'm currently paying down 250$/month in Principal renting out the unit, and with depreciation since technically I don't own any land, I should be at least breaking even. I'm very flexible and will change course if necessary, but I see myself keeping the property for the foreseeable future.

 Last Average Value was 150k without appraisal, and I've done about 5k of renovations to it. 

Interest is 4.0% flat (VA Home Loan)

Jon,

yes I am in the Midwest. Suburbs north of Chicago. We just opened a whole foods and Amazon warehouse down the street, so things will probably appreciate

 Right, but the money loss I would experience by selling from fees would be SIGNIFCANTLY more than if I kept the property for a bit before selling, and having my tenant build equity for me.

id be losing about 10k on the high side if I sell today, and it would take me years to reach that amount of loss if I rent it.

 So I just replaced the countertops, replaced all flooring while I'm there. I expect maintenance to be minimal. It has appreciated about 10k since I bought it last April. It's from 1986. And I would def not be strained from the 69/month

Hey all,

I bought my first property a 2BR/2BA In April of last year (before I found BP or how to calculate cash-flowing properties), been living in it until about  a month and a half ago. I'm moving out of the country at the end of the year to study abroad, and found a property management company to take care of things.

Got a tenant in place already, here's the breakdown:

Rental Property Cost Breakdown

Mortgage/Insurance/Taxes/Escrow: 1215.35

Property Management: 137.5

HOA Fees: 366.56

Total Cost: 1719.41

Rental Income: 1650

Loss:69.41

This isn't even calculating maintenance costs...

In the second year, if my tenant renews I get a 35% discount on my management fees.

What is my best course of action at this point?

I know I can deduct passive rental property losses form my active income (I make less than 100k)

Some other info:

-I have about $15k in reserves

-Next year I won't be working in the States, or for an American company, but I will be receiving a W-2, but can offset those taxes due to the following:

• "The Foreign Earned Income Exclusion, which allows you to exclude $105,900 from your foreign earned income on your 2019 US taxes and $107,600 on your 2020 US taxes
• The Foreign Tax Credit allows you to offset, dollar-for-dollar, the taxes you paid in your host country with your US taxes
• A Foreign Housing Exclusion which allows an additional exclusion from income on US taxes for certain amounts paid for household expenses that occur as a consequence of living abroad"

-I'm a single guy with no family, so my lifestyle is pretty flexible.

If you need any more info, please just ask! 

Thanks.

Hello everyone!

Currently house hacking a 2BR/2BA condo, with the eventual plan to turn it into a rental property. (I'm renting out the 2nd bedroom, so I can pull in at least a little income while house hacking) I realized I'm alot more handy than I give myself credit for (I'm a Jet Engine Mechanic in the Navy), no wife/kids, so doing most of the work myself.

I would love to get in contact with people that use house hacking as a primary way of creating rental properties for themselves!

Thanks,

Bruno

Hello!

Reposting this because I just realized there is a section committed SPECIFICALLY to Tax Questions.

I currently have a 2BR/2BA Condo that I am house hacking, renting out the secondary bedroom and using that income to conduct renovations/upgrades. I got it using a VA loan, and I hit my year residence mark in April, with my intention of turning it into a rental property at the end of this year, or early next year, when I get out of the military. I still have some work work to do before I can get it in good enough condition for it to cash flow, right now if I were to rent it I would most likely break even (I bought this place before doing the calculations, and discovering BP)

My question is this:

Am I able to tax deduct expenses I use to get this place upgrade, since I PLAN on making it a rental property? Or can I only start deducting on things once it becomes a full time rental property that I'm not living in?

Also, does the fact that I purchase all of my materials for renovation using a military discount from Lowe's? It's states that it was discounted on the digital receipts from them.

Thanks,

Bruno

Bump