All Forum Posts by: Account Closed

I hired into Ford at 19. Purchased my home for 127,000 at the age of 20. 18 years later the market finally rebounded and I should be able to sell it for 135,000.  With that being said. It’s really important for me to not fail again on my next real estate investment. 

In Michigan the homestead discount is roughly 35%. Which decreases the quadplex yearly taxes from 7000 to 5500 roughly. Which helps the numbers look better, Until I decide to move out. If I move Into the property it also gives me a few different purchasing options. I can buy this property on a conventional mortgage and only need 5% down. Which the property I'm interested in is listed at 250k. So to get in this property for 20k compared to 80k on a investment loan is a nice perk. Even a FHA with 3.5% down is a option, But then my numbers look disastrous.

I really like the idea of getting out of my house and into a business. I think it will help me out tremendously when tax time comes around. A few years ago I surgically eliminated the chance of me ever getting a child tax credit. So I personally have nothing to claim or right off except a little interest on my current mortgage. My accountant won’t let me right off my dog or my trips to Thailand. I try every year. Lol 

The only affordable quadplexs are in Detroit. Which that’s not something I’m interested in. Being a slum lord in the slums is not the direction I want to go in. I live 2 miles south of Detroit. That’s close enough for me. 

Thanks for the response Christopher. I should of used a different phrase instead of paying myself rent. I'm well aware that I cant claim my own rent as income. sorry for the confusion. When I said paying my self rent I was more or less referring to a little help supporting my business financially if needed. Please if anyone can share some input on my 2 questions I would greatly appreciate it.

Hello everyone. My name is Erick. I live south of Detroit and I’m ready to start my adventure in real estate investing. I purchased my first home 17 years ago and lost my butt on it. So I’m hoping to sell it soon and move on from my biggest failure in life. Looking to rebound and I hope BiggerPockets will prevent me from making another bad choice.

I’m starting to evaluate multi family homes. The calculator is a blessing. But I’m confused about a few things.

Question 1#

Is it ok to factor in the properties average tax return towards income?

I’m looking at a quadplex. The numbers are not that great for the price. I know numbers don’t lie. But if I move in the property and rent out the other 3 units. Pay myself rent and take advantage of my homestead property tax discount. The numbers might take me to first base. But this property is definitely not a double or a home run.

Question 2#

Is it wrong to weigh in the personal pros and cons of a property compared with the business pros and cons?

My position is unique. I’m happily unmarried with no kids. 38 with 18 years as a factory rat at ford mo co. I get killed in taxes every year. I would like to take advantage of the 12,500 tax deferred small business retirement account. I would also like to move into the property and sell my house. It’s hard to find a quadplex available let alone one with a empty unit. So I have a few personal reasons I find the property attractive. I Just need some advice.