All Forum Posts by: John Gochangco

@Jack Orthman hi jack I'm about to jump into out of st investing sfr looking at KC. I myself live in cali and have prop in Northridge ca but live in norcal would like to connect with you for same type of advice. Thanks

@Natalie Kolodij

Agreed

@Eamonn McElroy

Yes of course we all know it is fraud that is why I stated it in the question. It was a question of debate hypothetically. It came up as an argument in a discussion but I had no facts to back up why reporting it should be at least the same or better... I knew we the advantages of reporting not really the other way around.

@Carl Fischer

I see so if the loan is already set. Then it seems the individual is either break even or losing out if not claiming it as investment and not reporting income!

@Ashish Acharya

Yup agree with legalities this was a hypothetical question from another rei colleague most likely knew someone or he himself delved in the practice.

Ok I'll make up a couple scenarios

Sam agi 155k

Fred agi 185k

Jane agi 205k

For tax purposes... for the same home would you benefit more from claiming no income on secondary home vs claiming it as a straight up investment property? (Just to make it fair let's say tenant pays cash non traceable so u dont have to claim income) would claiming 2nd home be the sure winner? Landlord is w2 earner and pays high taxes. Of course this is just hypothetical so dont delve on legal issues and wouldn't advise it... just want the numbers and facts.

Lol @james yoo you just made it 11. The way I see it if you are disciplined at repaying the loan whether it comes from heloc or passive income you will shave years off your mortgage quickly. Relative on how much mortgage you owe. 10 k payment can knock a huge dent or significant years off if ur loan is 200k or less. If ur loan is greater than 400k very little. So it's all relative and if it's a heloc with higher rate you will have to pay it down quick to reap the benefit. Discipline!

@Tyler Jahnke thanks for your original "naked" post. I stumbled on this just this Saturday! Took me hours to read to all the posts connected to your original post! You have taught a lot of us newbies a valuable lesson. The money that you spent on "that" deal has exponentially paid itself for you and the hundreds or thousands that have read the post. I just discovered BP this spring. I'm planning to go into long distance REI too as I live in Sactown CA. I'd like to connect with you on your insight on this. Will send you a PM.

@David Friedman Which mortgage broker would you recommend for HELOCs. The broker I use for conventional loans doesn't really delve in helocs. 

@J Singh agreed 100% it doesn't matter when you start. It's how effective you are when you do. I bought my first home at 35 and another at 36 that foreclosed back in the crash (now late 40's) sat on it went back to school to pursue a degree in the medical field. I thought that would make me happy. Never read Kiyosaki's RDPD; then I read it last year and realized I was doing it all wrong. Discovered BP middle of this year... learning and trying to network and get going. Today we live in our current home, have 2 single fam rentals that just about break even. Both homes have significant equity (including the one we own) but no cash flow. Working on pulling that equity out. I have a strong six figure income but my biggest mistake was foreclosing on a home back in the crash. So that is holding up a traditional loan for me. I think I have 2 years until that resolves. I also have built up a significant 401k and roth IRA near 300k. Before I place all of that capital at stake I need to do my homework and learn how to see a good deal when it comes across my desk. I need to rely on myself not others. Don't regret that you didn't start at 20, 30, or 60 as long as you start. I would say at least 90% (most likely more) never do real estate. Some never even buy a home! The only time it is too late to do REI is when your heart stops. Dude as long as its still beating YOU ARE IN THE GAME that most never get to play.