All Forum Posts by: Chris Masons

In short, alot of new investors in multi families think you just take you rental income and subtract your basic expenses PITI. prin. interest, tax and insurance and do not take anything else into account. There are alot more things going on. Granted on smaller 2 families they don't play as big a roll compared to larger multi families but you should definitely learn these things now.

While you may have several months of just these basic expenses, hell I have had over a year with just these expenses, you have to look at the big picture esp. if you are in for the long haul. There are expenses that are bound to come up. It's not a matter of IF but WHEN. If you can properly align your budget and account for these things from the gecko you are much more likely to succeed in your investing. The less surprises theh better!!

Don't forget you will also get some great tax deductions and depreciation that will hopefully put money back in your pocket come year end.

regards,
chris

welcome ozzie!

where abouts in NJ are you??

chris

Charles,

I do actively manage my invvestment properties, does that make me operatie as a business or trade? I didn't think so.

Although I actively manage my properties isn't the income still passive so not considered busiess or trade? I am not a "real estate professonal" by IRS definition and am limited to the 25k passive lost limitation.

I am pretty sure Steve mentioned as a landlord actively managing you are not required to file 1099s.

I guess the discussion/debate continues........

thx,
Chris

ahhh, nevermind. This law was repealed in April of this year. I recall Steve or someone else mentioning this now. The article I posted was from Nov. 2010.

ahh I can exhale now!!

thx,
Chris

Ok, now I am really confused, last week there was a discussion as to if just a landlord receiving passive income (rental income) was required to issue 1099s and the general concensus was since they were not operating as a business or trade and the income was passive they were exempt.

I found this article which seems to say otherwise. To me it sounds like ANY landlord receiving rental income would be required.

Could some of the tax Gurus take a look at this link and comment?

http://www.journalofaccountancy.com/Web/20103537.htm

thx in advance

Sounds like a great idea. Would love to join one that is based in the tri state area?

Since the first is filled I'd be happy to try and get another one going?

thx,
chris

Hi Kacey,

I am just about to close on a contract for deed sale on one of my 2 family investment properties. I currently do have a mtg. on it and will continue to pay it while receiving mtg. payments from the buyer at our agreed upon terms.

I received a fair amount of cash up front. Enough to make me comfortable to do this deal. The other postive is I am selling for much more then I can get if I put it on the market now traditionally. The person buying it is unable to secure a loan via a bank at this time.

So there are positives from his point of view as well as mine.

regards,
chris

Silly question but I just cannot remember the answer:

Regarding this passive loss allowance that gets phased out @ 150k of w-2 income If for ease of example I make 150k of W-2 income but I contribute 15k to my company 401k does this give me the AGI income of 135k which would qualify me for a small passive loss deduction in said tax year, OR is it based on your income before any of these types ofo deductions?

as always thx in advance,
Chris

I think the fact that it has a master bath vs the size of of the master bath will pay a bigger roll in selling. Also the fact it will be brand new will paly a roll in your faver.

It's amazing everyone buying homes today almost always expect a master bath as if it is always a given. Ic an remember a time where it was a huge luxury LOL

good luck,
Chris

Zach,

How are you aquiring this property with no money down? Is it owner financing with no money down?

That is a huge positive in my opinion. IF I were on the fence it would definitely sway me. I haven't worked the numbers yet I was jusst curious as to how the transaction is taking place without any money out of your pocket.

thx,
CHris