All Forum Posts by: John Bernardo

I've spun up an LLC for my RE investing and rental management business. This is on the side, while I make $ as a salaried employee. The plan is to eventually leave the W2 job once the business grows to enough profitability.

I understand that CapEx, startup costs and other expenses can pass through to my ordinary salaried income.

I'm not sure about depreciation, however - there are large amounts of this in a RE business as you folks probably know, and it'd be good to be able to offset my salaried wages with this, if possible.

Would we be able to pass through depreciation deductions to our ordinary income as well?

Thanks both. Really useful advice @Andrew Postell.

@Bob Stevens to clarify, I'm not looking to get into contract without knowing things such as ARV and estimated repair costs. The formula I'm using is ARV * 0.7 - repairs for target acquisition price. Reason I ask about doing a contingent offer and walking with a GC after in contract is because often, time is everything, and it seems like we won't always have that luxury before entering contract. So I would enter contract contingent on a full inspection, including GC walk, after which we would have more than just a ballpark estimate on repairs.

Curious what the best practice is here.

Simple question - when should I be getting GC bids; while in contract or after closing?

If during contract, then we'll have to build that timeframe into our offer. Thanks!

I'm looking to get into my first BRRRR. I've bought real estate before, but only primary residence.

How can I accurately calculate the rehab costs on a property without having the experience needed to spot issues?

How much time should I allow for inspection and GC walkthrough?

Thank you in advance.