All Forum Posts by: CJ Letzelter

1400 sq ft will bring $2200 rent in highlands ranch. The house is most likely worth 350K at most. I have two houses in that area. At 330k with 25% down your numbers will be ok but that is assuming you can get for 330k and no addition funds needed to get rent ready. Many homes there do not have AC and that's just for starters. My homes all needs 10-15k to get rent ready.

I also live in Singapore and just purchased a SFH in Denver. I find I am not comfortable in the Asian markets at this particular time.

Thank you very much for the example.  This makes sense and is the information I was seeking.  

Yes, we max out our IRA's already every year. Thank you for the advice. One of the biggest reasons we need properties is to retain our credit score. I have been abroad for 3 years now, have no debt and my score is 600 and dropping. I have been advised I will soon have no score if I don't take on some controlled debt. Also, we travel to the US with our family each year, at great expense and owning houses in each city our families live will provide some tax relief.

Thank you Bill.  The question I am then left with is when I go to sell the property, how much of the sale price is taxable assuming I don't reinvest the funds.  If my income is 15,000  (principle and income after expenses) a year on a $270,000 property and I apply all towards paydown while writing off 10,000 a year in depreciation, what will be the taxable income from the sale of the property assuming it sells for $270,000, 10 years from now and I put $80,000 at the purchase?  I would have written off 100,000 in depreciation of the $270,000 and have $130,000 of already taxed income in the property. 

Thank you for your input.  I just need to better get a grasp on what is and what is not a write off.  I will work to get a hold of a CPA to clarify.  

Given the time of year, I am unable to seek advise from a local Denver CPA combined with living in Singapore have left me with an important question.  Can profits from rent be used to paydown the loan on the same house tax free?  I am not interested in showing a profit at this time therefore am perplexed with reducing my loan terms (30y to 20y) to make the payment close to expected income or allowing a buffer for economic downturns by utilizing a 30 year loan and paydown as long as times are good.  Since my wife and I live and work in Singapore we need tax writeoffs, not additional income.   The interest rate is about the same for 20 and 30 so no motivation to commit to 20 year at this time if the income can be used for loan paydown tax free.  

Does anyone have a recommendation for Property Management companies in Denver/ Particularly the Centennial/ Littleton area.  I appreciate any experience good or bad that you have had with companies in and around Denver. 

This was my initial though in evaluating my future. Of course doing this means less properties but they would be more stable with greater equity. You are correct. We don't need cash flow at this time. This investment opportunity is for future passive income. For now I will hold the capital for the right opportunity and work to build a network that might benefit myself and others going forward. Thank you for your input.

Thanks for the advice. I'll refocus my searching and see what I come up with. Enjoy Colorado. We do miss it. Tough year after year of exact same temp everyday. 85 and humid. I hope to get to Colorado soon on a trip.