All Forum Posts by: Joshua Sclafani

I have to agree with @Michael Haynes on this one. Best bet is to tent an old house and it will be good for many years, it also kills almost anything living in the house. The warranties are not worth much and the liquid treatment is only good if you have definitive proof you only have subterranean termites and if they are in the house you should also tent.  In historic neighborhoods such as Seminole Heights, older homes hold their value much better than concrete block and are easier to sell, and yes, they have more maintenance...

I completely agree with @Mike Dymski this is apples and oranges, not haves and have-nots. Talk to any tax expert and they will tell you that the majority of the tax code is designed to encourage the populace to start businesses that provide the benefits to society that the government deems desirable. Most people do not understand this. Deductions for a W-2 employee should not be the same as a business owner.

@Joey Budka Thanks for your comment. Not sure what you meant by victimizing myself, perhaps you took the Ma and Pa out of context? As @Levi T. mentioned, everyone in REI would be affected, not just Trump, which what I meant to convey.

Agreed @Levi T. my first reaction was the same, no way this is going anywhere. He's latching onto the headline of the day to try to get attention. Hopefully this fails miserably before it gains any traction. Just troublesome that it would even be raised...

Sanders Announces Bill to Close Tax Loopholes Used by Trump

Tuesday, October 4, 2016

WASHINGTON, Oct. 4 – Sen. Bernie Sanders (I-Vt.) announced Tuesday he would introduce legislation in the next session of Congress to fix our rigged tax system and close loopholes Donald Trump used to possibly avoid paying federal income taxes for nearly two decades.

“Special tax breaks and loopholes in a corrupt tax code enable billionaires and powerful corporations to avoid paying their fair share of taxes while sticking the burden on the middle class,” Sanders said. “It's time to create a tax system which is fair and which asks the wealthy and powerful to start paying their fair share of taxes.”

Special breaks and loopholes in the tax code favor wealthy real estate investors like Trump and do nothing to boost the economy. These breaks likely made it easier for him to claim losses of $916 million in the 1990s and avoid paying income taxes in subsequent years.

“I will be introducing comprehensive legislation at the beginning of the next session of Congress to do just that,” Sanders said.

For a factsheet on the tax loopholes Sanders’ bill would close click here.

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Sanders will do away with 1031 Exchanges, the ability to deduct REI losses from personal income and more. Basically this career politician who knows nothing about business is doing away with almost all of the incentives for Ma and Pa investors to provide housing at a time when the country is in dire need of more housing...SMH these are not "loopholes" they are incentives to provide housing.

Great post Mark, Keep up the good work! Mind if I PM you a couple of questions about your buy and holds? I have a potential deal in the same area as your properties and want to vet some assumptions in my analysis. I'm also interested in what amenities you found to be most desirable to renters in that area. Thanks!

@Thomas S. great post and great plan, wishing you the best of luck. All I can add is there is no "right" way to do this. As a fellow PM, we know there is never a perfect way to run a project, different tactics, tools, and methodology are required every time. Do what feels right and allows you to sleep well at night and remember that it's expected that your plans will change over time.

I'll leave you with this...when a ship sets sail across the ocean, the captain doesn't set the course and go below deck for 2 months. It is a process of constant corrections, all the while accounting for ever changing conditions (wind, currents, sails, storms, etc...) in order to arrive at the intended destination.

@Todd Kalsey thanks for your post and for confirming what I was also thinking about SFRs in a similar market.

@Jon Q. can you elaborate? Are you advocating for Multifamily in an area like @Todd Kalsey describes as opposed to single family housing or would you stay away from an area where the growth trend is focused on new apartment developments? I am curious bc my area is similar to Todd's and I see SFH as a viable alternative to apartments but am also trying to vet this assumption.

Thanks for sharing your experience and congrats on your first deal! Question: Why not move it out of your LLC to refinance? Just take out an umbrella policy to provide some extra protection. If it's the difference of 4-5 points it would be worth it. My 2c.