All Forum Posts by: Matt M.

I dont owe any arrears or anything, and we've been divorced for some time now so its not like I had a rental property when knowing her.

How would the courts know my income from the properties?

And yes Bill, ALL income is hard earned I must agree... but especially the kind where you have invested your own hard work, money and time in order to produce it.

Awesome replies in here, so I'm just going to ask the questions w/out trying to quote everything.

I understand net= gross-costs. Thats simple math.

My friend who's VP of finance does stocks as well as real estate investments. He buys properties and rents them out for cash... namely warehouses and office buildings, but also some housing units. I'm not going to rely on him for ANYTHING other than keeping my books and making sure that I'm not losing any more money than I need to be.

Yes, taxes suck.... I dont believe in them. I've been "blessed" with living in tax-hungry NYS.. yay me.

For numbers:
Going to buy something between 80-90k tops.... will probably put 10k down and keep a some leftover for improvements. I will probably be asking about $650/mon, give or take, depending which facility I find. I'll be getting a tri-plex, so thats roughly $1400/mon. No PMI if I go w/ a VA loan, otherwise I'm not too terribly worried about the cost.

For a $96,500 loan I'm looking about $842/month for all insurance/taxes/fees/mortgage. If I get a house for less than $92.5, which I fully plan to do, obviously this number will go down.

Craig Shute Ah that clears it up... thank you. Yes I mean sales tax.

Jeff Bridges So is the probability of me owing money or receiving money greater with rental property? I'm leaning towards I'm gonna owe money aren't I....

I mean monthly payments... do i have to pay the 8.75% of the monthly rent? Or just at the end of the year when I do taxes?

Ann Bellamy
Gross income
less expenses
less depreciation

Yes thats def something I can work with. What are depreciation losses based upon? State number? A set federal rate?

Craig Shute yes assuming $20k in gross income, just to make an easy, round number.

So do I need to pay state tax on every deposit the renters pay? IE they pay for instance an easy $600/month... do I need to pay 8.75% NYS sales tax on that? I pray no...

Sounds fair enough to me lol.

But how much in taxes can I expect to lose if I make say, $15-20k/year in rentals?

Jon Holdman great idea about keeping securities separate.... I like that.

@jenn do you live in any of your rentals?

So a cpa will know all this stuff then? Thats great news... kinda. Because I have a good cpa.

I just like to have a pretty good idea of what I'm getting into, and am a firm disbeliever in "oh, NOW you tell me".

My ex is rather spiteful, and I'm really hoping that she doesn't have any legal entitlements to my rental properties. Theres no alimony payments, nothing special about the divorce, she's already taken all of my hard earned belongings... I am only left with child support.

Can she take my hard earned rental income in NYS?

With all due respect, he's also a broker and owns his own brokerage and investment firm... containing portfolios ranging from a measly $30,000 up to $3m. I think that makes him relatively qualified. Not to mention, he teaches bachelors and masters level accounting at 3 universities.

Your talking a little over my head here in terminology, so I have a question.. will the amount that I pay in taxes on my rental income be enough to really suck? Or will they be relatively fair?