All Forum Posts by: Christopher Throop

@Steve Karpowich

Thanks, Steve.

Hi all,

I'm looking at a property at 7010 E 84th St in Kansas City.  Can anyone with some KCMO familiarity give me input on this area?  Just a general impression would be great.  Any greater detail is certainly welcome.  Thanks.

@Brian Eastman  @Loren Whitney

Thank you for the quick responses.  I'm considering more of a crowd funding-type investment which wouldn't have any requirements for additional funds beyond the initial investment.  So, if I plan on keeping $1,000 or so in the account to cover fees and expenses, it sounds like I should be good.  Of course I'll take this up with potential custodians before I commit, but this helps me decide if my plan is even feasible--and I think it is.  Thanks!

Quick question here.  If I open an SDIRA, how much of the balance can be used for investing?  Can I invest it all and have a zero balance, or will I need to keep a certain amount in reserve?

@Stephen Franco Which calculator are you using on mortgagecalculator.org that allows you to input your payment amount etc. and get back the property value?  I looked around but couldn't find it.

@Ronald Perich

I finally got around to trying out your updated/repaired version of the spreadsheet. I am using it to illustrate not so much the difference in 401Ks vs. REI, but instead the power of real estate investing in general. Your spreadsheet really shows the possibilities of REI--and how time and compounding can work their magic. It's made my day! It took me an hour or two recently do the same thing by hand/calculator but I hadn't accounted for any number of factors that are built into your tool. Thank you very much for taking the time to create the spreadsheet and being willing to share it on BP.

Geat!  Thanks, Dave.

I'm likely to purchase out-of-state property in 2016 and will travel to ensure that things are in order before making a purchase. The purchase will be made using a conventional 30-yr mtg in my name--thus I don't have an LLC or other business entity established. Will I still be able to deduct travel and related expenses since this is technically a personal investment?

What I'm really looking for is a ball park number I can apply to the value of a property to get an estimated annual tax amount. I've heard that 1-1.5% would typically work. Is that other people's experience?

@Chris Dawson For analyzing properties I'm just considering the purchase price as the current value of the property.  I think county tax values are typically below the market value of a property.  I figure if I use market value I should be safe.  I hate protesting property values (its a lot of work) but have done it and been successful.

@Alicia Horton Thanks for walking me through the example.  $744 is roughly .67% of the value of the property, which seems really small.  Are there other taxes to consider as well (e.g., school district)?  What would be the total tax I might expect to pay on a rental property?

Are rental properties considered "commercial" or "residential" for tax purposes?

I've been looking at properties in Kansas City lately and I've seen "estimated" property taxes from sellers that vary widely--even for properties with about the same value.  Can anyone tell me how property taxes are calculated in KC?