All Forum Posts by: Jason Wong

@John D. hard money meaning income from W2? I am currently looking for a long-term tenant now so I can keep this deal. 

@Avery Carl CA. I talked to many lenders and none of them was willing to consider STR income from this investment property. Btw, I am trying to buy a primary residence.

I ran into the same situation like https://www.biggerpockets.com/forums/530/topics/714669-my-lender-will-not-consider-my-short-term-rental-income, and i currently have a vacation rental property that's doing very well, but my lender doesn't want to consider its income since It is less than 2 years old. Lender wants me to provide a long-term lease with security deposit instead. How common is it for people to make a bogus long term lease? 

@Ken Latchers thanks for your candid advice, truly appreciated! I think you are right that real estate investment has a very different learning experience than investing in stocks, and I totally agree that there are a abundance of knowledge that I have to learn to get this started!

I chatted with a few friends who were in similar situations as me. They all suggested just going forward with LLC approach, since that way I can always deduct maximum amount from housing operations in LLC, the same as C Corp. @Adrian Peterson @Ken Latchers @Basit Siddiqi @Nancy Bachety Say if i make $20,000 from my Airbnb, and I can pretty much deduct the full amount, things like depreciation, vehicle, maintenance, etc.

thank you @Adrian Peterson. This approach sounds reasonable, I will explore more into it!!

Thank you Basit. That's what I am thinking about next, to talk to an accountant.

How about transferring the mortgage from my name to a C Corp? 

Hi Community member,

I am new to this community, and would like to ask some advice regarding a plan I am thinking. Appreciate for any help. Currently I have a full time job, and I make around 200k+ a year. I am thinking about starting an Airbnb business under C Corp, and would like to ask a few newbie questions around tax.

1) Buy a few cheap properties under my name, all with mortgage (20% down payment)

2) Set up a C-corp, and move over those properties to C Corp

3) List these properties in Airbnb and income goes to C Corp

I didn't want to use LLC or S Corp since my tax rank is already very high. And using C Corp to shield airbnb income, and plus certain operation tax deduction can help me save lots of money.

Questions:

1, is this plan feasible?

2, what can I count as tax deduction in my C Corp? Like cars, gas, etc, housing maintenance, furniture?

3, can mortgage count as operating cost under C Corp?

4, is this plan better than LLC or S Corp? Since I am already paying like 40% of my income to tax. I am happy to leave all income in C Corp for re-investing purpose without taking them out.