All Forum Posts by: Eric Nelson

Thanks for the clairification.

So, my brother makes over $150k, and thus will not be able to deduct below zero.

I heard something on a podcast about if you are a real estate professional, 1050 hours a year, you can claim the loss no matter what.  So, when they get more properties, will they be able to have her do this and get more deductions?

Thanks again!

I just bought a triplex in Bemidji MN.  I work full time, my wife and I file jointly around $110k income.

The house cost $168,500.  If I have a negative cashflow on paper or IRL this year, will I decrease my taxable income from my full time job?

If so, Is there a pay bracket cutoff where you cannot anymore?

Examples, I make $110k, rental income is 25k, and I have 30k in deductions.  Will my taxable income go down to $105k, or does that extra deduction carry over until I have a positive year?

Thanks!

Eric Nelson

Wow man, awesome.  Just used some equity to purchase a triplex.  If you find a deal in Bemidji, let me know.

We paid off school loans of $170k before we invested, but that's only because my wife was not confident in it.

Looking back I would have rather used some of that money to go toward saving for a property than loans.  Mostly because your rent is now being half taken care of and the rent you do pay is going on your loan.  

Sometimes the hardest part is getting that first deal.  

I'd say pay off debt slowly, save for down payment, then jump when the deal comes around.

After you're in it, you can knock out your debt while you pay less in rent

looks like I'm a little late to the game.

I'm in Bemidji, just getting started.  Would like to make it to something like this.

Hit me up when you plan the next one.

I'm purchasing my first Triplex in Bemidji this week. I'm also inheriting a Section 8 tenant. It was very easy to go down to Bi-cap and talk to the person that handles my tenant.

I'd go talk to them, and they can educate you on what all needs to be done.  They'll get you an application, and contract you need to fill out with your tennant.

Everything I've heard about mine is she has a stable job, 2 kids, and when I walked through the place looked and smelled great.

Don't stereo type to quickly.  She's been there for 4 years, maybe she'll be alright and stay 4 more.  After rent increases to market rate of course.

Hello, I've found a triplex in Bemidji that's going to work out for mw, but I don't know how the taxes and payments work when using a personal heloc for down payment on an LLC property.

Is there a way to transfer the heloc to the old to streamline the taxes?

If not, do I just take distributions every month to pay that?  Do I pay income tax on that number?

Is there anything I'm missing here, too?

Thanks for your help!

- Eric Nelson

Would also like the replay link please

ok, got some more info today. 

Nat. Gas and electric paid by renters.

Ins cost $120 per month

Taxes are closer to $3522 

Water and trash are $161 per month

Other permits are $381 a year.

I would mow, plow and self manage.  Hope to take $50 a month for my time.

Would self manage until I have a bunch more units.

Exterior needs paint on a half wall.  My wife and I can do this - $400

Everything else works and is in good shape.  2 of the 4 units have been remodeled.  The others are much nicer than others I've looked at.

So, here's my updated numbers.  Please let me know your thoughts.

Loan- $1,053

Taxes - $293.5

Ins - $120

Trash - $81

Water - $80

Fees - $31.75

$1659.25 cost per month.

2 long term renters and I still believe the rent is low.

These still seem to good.  Am I missing something?

Thanks for your help!

Hello, I'm in northern MN, and looking into getting into investing, and am looking for some advice.

I'm looking at a 4 plex locally with 4 2b 1ba units.

Cost is $160k, but I think it's worth closer to $180k.

Yearly Rent is $26,760.

I would use my heloc for down payment so basically financing the whole thing.

Love the location

Has 1 lifer(been there 7 years) the current owner has not raised rent on in a while and I probably wouldn't either.

Taxes are $3000

Tenants pay electric

Average local income is $35K with average house price is $138,582.

Seems like even @ $165k I'd be doing pretty well.

I'd self manage, and fix issues, but from what I can see, there are not any pressing CapX's needed.

Not sure on cost of heat yet.

Any other info needed?

I'd love some input on what thoughts are.

Thanks!

-Eric