All Forum Posts by: Gina Russoniello Tiwari

@Basit Siddiqi and @John Underwood - Thank you both! Very helpful. 

I was also able to tune into an STR info session yesterday afternoon where they reiterated much of what you are saying - that the taxes on STRs (and RE holdings generally) vary a lot, may potentially be nonexistent due to depreciation, and accordingly many calculators do not include them.

Thanks again

Gina

Hello wonderful BP community, 

Spouse and I are looking to get started in the STR business. We are new to RE investing in general (so far our only RE holding is a passive LP interest in a RE fund). We are trying to follow Brandon's advice and run the numbers on about "100 potential deals" before we strike. In doing our research on the BP site so far, we came across the massively helpful STR income calculator shared by the author of this article:

https://www.biggerpockets.com/...

Being brand new to this, however, we don’t know what to plug in as our applicable tax rate. Husband is employed full time (W-2) in healthcare and I recently switched from a W-2 to a 1099 independent contractor position as a lawyer (I’m giving these details to point out that our main business/income is not our RE holdings, but we’d love for it to someday be). We know what our tax rate was as a married couple last year, but not sure if that’s helpful here. 

Ultimately my questions are: 

1. Does our income generated by our "STR business" (say we form a company to hold a handful of properties) have an income tax rate that is separate from our own personal rate, or do we just claim the income on our own personal tax return (subject to applicable deductions)?

2. If you run a STR business, do you pay the additional self-employment tax rate on the income your STRs generate?

3. Any other tips you guys have (related to taxes or otherwise) to take into account while running the numbers on our potential deals?

Note: I'll ultimately run these questions by our accountant too, but wanted to start here to see if any more experienced STR folks would be willing to share insights on what you've been doing.

Thank you!

Gina

Thanks @Justin Windham! That's really useful advice and I'll definitely be using the alerts feature!

@Bernardino Graziano Really appreciate your perspective as someone who's lived across Italy and seen the various different areas of demand first hand!

@Mike Lambert Would love to learn more about your experience with international short term rentals in general (not just Italy/Europe). If you don't mind, I'll send you a direct message on that. Your cautionary point about not letting one's passion for their Italian heritage cloud their judgment/reminder to invest with the head and not the heart is well-taken. For my own family at this time, our primary income is still from my work as an investment funds attorney and my husband's work as a physician. (We are just getting into RE investing, and I'd love to see that reality shift into predominantly investment-driven income in the future.) 

Now, I'd be lying if I said that the entrance into an Italian investment property wasn't passion-driven - it certainly is. Let's look at it this way: if the goal is to buy property in Italy anyway that I can visit with my family, I want to do so in a way that will be a good investment. Notwithstanding certain aspects of the Italian economy that I know all too well, I know that there are good vacation rental investments to be found there.

Regarding investment income on residential rentals: I'm genuinely trying to learn about the viability of such an investment. The answer to that may be "not right now"/"pick another country". I've seen the university and hospital driven demand in certain Northern Italian cities, but I'm not sure such an investment would be the right choice. A hospital neighborhood... maybe. A student neighborhood... probably comes with a slew of problems (I'm thinking tenant damages) that may be best left out of our portfolio! 

Finally, in addition to Florence (for which Mike makes a solid argument), Rome, and Venice, I'd suggest that areas that are consistently visited by more and more tourists and will never go out of style also include the Amalfi Coast, Cinque Terre, and Lake Como (in particular Bellagio).

Gina

@Jay Hinrichs It's a good question - I'm definitely not an expert but I found this short article very helpful: https://www.globalpropertyguid...

@Jay Hinrichs - I've seen those too and done my research on them. Agree with you and Mike - they are a lovely way for southern Italy to attract vacationers to love and care for previously abandoned land, but that is about it. They are not worth the trouble for investors.

@Mike Lambert - Thanks for your thoughts. Having previously lived in both Milan and Calabria and worked in Milan, I'm familiar with the bureaucracy and political problems that exist in Italy, and in particular, in the south. You mention Rome, Venice, and Florence, which are nice vacation spots and I agree with you that an investment in a vacation property there could potentially be profitable. On the other hand, Milan, Bologna, and Torino are cities that are bustling with universities and/or hospitals. Milan, as the corporate center of Italy, also is home to most of the young professionals in Italy. As you know, neighborhoods with universities and hospitals are reliable sources of rental income. I understand that the real estate market in Italy is not the place to buy and sell for a profit. It is, however, a fine place to generate rental returns and returns from vacation property holdings.

Thanks again everyone for the attention to this post, introductions in the areas that we've discussed are welcome!

Gina

Hi BP community, 

My husband and I are new to investing and have spent the last several months educating ourselves and exploring different real estate investment types. We are ready to get started talking to brokers and evaluating potential deals in the following investment classes:

1. Syndications and Funds (we are accredited investors)
2. International (currently Europe) vacation rental properties
3. Local residential rental properties

We listened to a broker on a podcast discussing the importance of having an investor profile to share with people in the industry so that professionals in the industry will both understand your background and goals and, more importantly, take you seriously and give you their time. However, we aren't completely sure what to include in our "profile" (should it look like a resume)?? and would sincerely appreciate any pointers this community can offer us.  

Thank you!

Gina
 

Thanks everyone for the warm welcomes!

Hello Bigger Pockets forum :)

I'm excited to be a new member of such a prolific group! My husband introduced me to the Bigger Pockets podcast and we have been listening for around a year and are finally ready to get started in real estate investing. We currently live in New Jersey but used to live in the Carolinas and still have strong ties to that area. Our current goal is to develop a real estate holdings portfolio that includes a combination of holdings in the following categories (over time):

1. LP Interests in syndications and funds,
2. International vacation rental properties, and
3. Directly owned (but indirectly managed) residential properties (and maybe commercial down the line). 

A little bit about us:
I am an investment funds attorney, and as such I have a lot of experience reviewing and understanding investment materials (PPMs, LPAs, etc.) from a legal perspective, but this will be my first engagement in the business side of investing and my first time evaluating deals for myself and my family. That comes with a whole new kind of pressure, but I'm excited! My husband is a physician and he has been listening to Bigger Pockets all along and wanting to get into real estate investing, but he and I both have simply not had the time to dig in until now. I am going to be transitioning into a new job this month that will afford me much more time to focus on our family's real estate goals. To the extent it matters for any advice you have to offer, we are also accredited investors. 

Look forward to getting to know you - 

Gina

Hello, 

I am new to the Bigger Pockets forum and am looking to connect with folks who have experience investing in real estate in Italy. My husband and I are looking to make contacts in the region including with real estate brokers. I speak Italian and have a small number of personal contacts in the country, but this would be my first time evaluating a business opportunity there. Our current goal is to own rental properties, whether residential or vacation rentals (or both), that we can also use ourselves when we travel to the country. Areas of interest include Northern Italy (Milan, Torino, Bologna, Como, etc.) or coastal areas.

We would also love to learn the Do's and Don'ts from those of you with experience in the area (whether with residential, commercial, vacation rentals, syndications, etc.). Thank you!

Gina