All Forum Posts by: Dennis Tierney

@Daniel Dietz You can get an estimate of the Depreciation from a company that does the cost seg. studies. Mine have been 25-28% of the purchase price.

@Susan O. I would say you would classify as an active real estate investor as it's your only income.

It is scary how little these legislators know about our business but how ready they are to pass laws that will decimate it. They seem to think a mortgage is the only bills that a landlord faces. They don't consider insurance, property taxes utilities and repair/maintenance etc...

@Marty Sprong Yes it's called UDFI Unrelated Debt Financed Income. It still is something you need the CPA to figure but you can still use depreciation to lower the net income so comes out to a relatively small amount yearly.

@Account Closed You are correct that there is still a narrow window to take advantage of Mr Trump's 100% bonus depreciation. I am over 59 1/2 so don't need to pay the 10% penalty but last yr and again this year I have been able to take $1.5M in distributions in the SDIRA and buy multifamily outside of the IRA without paying taxes on the distributions. That avoids concern about RMDs when I hit 72 y/o.

Both. I've personally set up 3 syndicated multifamily buys plus invested in other's.

@Chris Schlechta I'm not a CPA or a lawyer so you'll have to check with one that deals with SDIRA to be sure but according to my reading as long as you own less than 50% it could be done.

@Adam Pakes There are a host of sources for you to learn about using SDIRA in real estate so read a bunch before diving in. To answer your question I have had a SDIRA since 2006 and have had several loans but the caveat is that the IRS rules are they have to be non recourse loans and can't rely on your credit to qualify. Houses are hard to get non recourse loans so I bought those outright but the multifamily all had non recourse loans.

Creston is a fairly small town close to Council Bluffs and Omaha. I don't know  that market but I believe it is mostly a bedroom community. I don't know who you'd get to manage a property there, unless you intend to manage at a distance.

I've done a couple of 1031s and used a company called IPX. They were easy to work with and performed well. I have no affiliation with them.