All Forum Posts by: Jon Henzel

Thank you so much for the responses so far, I really appreciate the insight and direction. I still do not know what I don't know when it comes to real estate. To clarify a few things - I plan on holding the rental units long-term. In fact, I have no plans on selling any property if I do not have to. My W2 pays me ~$200k annually and I have the potential to grow that income if I decide to see more patients. I currently only work 3 days per week in the W2 position, so there is plenty of room to grow should I choose to. My employers will not consider me a 1099 employee for liability and admitting privileges that are required for maximum reimbursement for our services. 

I am meeting with a real estate attorney to form individual LLCs for each of my current properties, each with a separate bank account and once everything is protected, bundle them under a living trust. 

My goals are to minimize my tax burden as well as expanding my holdings. After this year, I plan on making at least one investment property purchase as a long term rental until I reach a suitable monthly cash flow that could sustain me after I stop working. I anticipate that will be in about 5-7 more years. 

Is it possible to use those properties to minimize my W2 tax burden assuming I will qualify as a RE professional? Thanks again for all your help and wisdom!

Hello, 

My plan for the upcoming year is fairly aggressive, at least for my standards. I currently own 3 rental properties, all in NC and managed by an excellent property manager. They are all rented out on year long leases and are expected to maintain the respective leases for the foreseeable future. I am earning a total of $472 monthly in excess cash flow after considering PITI. My plan is to rent out my current home and manage the property on my own as well as acting as my own RE agent for the upcoming three purchases, the totality of which I am expecting to qualify me as a RE Professional and utilize the full deductions available. I was thinking of getting a cost segregation done and using accelerated bonus depreciation to offset my W2 income. Is this worth it?

If I can use the cost seg studies to eliminate my W2 income taxes, is it prudent to then stop taking a high level of taxes out of each paycheck?

In total, I am planning on buying a condo that is steps away from my office and converting my current home into another rental, which I would manage. I would then immediately start looking for a commercial space in Boise to open a satellite office for the current practice I am with. I would purchase that space and execute a NNN lease with my employer for the space. I was thinking of using a DSCR loan for the commercial space given the contract will fully cover operating costs. After the commercial space is secure, I would then move to Boise and look for a modest primary home that I would convert into a rentail in about 3-5 years and upgrade my living quarters. I currently have about $58,000 in cash but would prefer to maintain that there.

With all that said, is there a best way to consider creative financing to make each of these purchases? Thank you for any advice or guidance you can offer.

-Jon