All Forum Posts by: David Bates

Hi all,

Second major question I need some help with as I am comparing all kinds of investment options.

Provided you do all your homework properly, structure your LLC('s) in the correct way, deduct all of your expenses off your income and lower your tax bill, get a good team and buy a good property in a good rental market at a good price, what kind of net rental income vs property purchase price would it be reasonable to expect?

Could it be 8-9% or more? I realize some of your ROI may come from appreciation in the property value depending on where you invest, but I'd be looking at holding and building passive income rather than counting on appreciation.

If you would be willing, I'd be very interested to hear how other foreign investors here are doing.

Hi All,

Merry Christmas!

I'm a British expat working in China and have been looking for a way to improve on the poor returns I've seen in China and Europe recently. Some US rental markets do look very attractive, such as Memphis, Detroit, Indiana, Jacksonville, maybe Austin. However, before I even look at that, I'll need an LLC to collect my income. I could maybe put in 300k of my own and finance some more through financing on those properties.

From what I understand, as a foreigner we pay 30% federal income tax on rental income, but via an LLC, we can deduct the same expenses as a local investor off the income, if we file a tax return. Apparently, we may be able to lower it depending on the taxation treaties our countries have with the US (I have a Belgian and British passport, so need to do some digging)

With that in mind, if I end up owning a number of rental properties across the country, which state am I best off putting my LLC in? Do I pay additional state tax on top of federal income tax based on what state my property is in or does it depend on where the LLC is? Should I have an LLC in every state I own a property in?

Thanks for taking the time to answer!