All Forum Posts by: Justin Nichols
Justin Nichols has started 1 posts and replied 6 times.
Post: House Hacking LLC
- Posts 6
- Votes 1
Quote from @Linda Weygant:
It is generally not recommended to put a house hack situation into an LLC. The issue is that none of the expenses for the portion you live in are deductible on Schedule E. (Property taxes and mortgage interest excepted, but deductible on Schedule A). So essentially you can only put half of the property into the LLC, which might work for tax purposes (sort of), but doesn't work for liability at all since you can't usually put half of a duplex into an LLC as a separate asset.
I do recommend that you keep a separate checking account just for housing expenses because it will really help you come tax time. For things that apply to both units, just remember that only half of it is deductible. For things that are bought just for your unit, remember they aren't deductible at all. Keep track of what's what and you'll be fine.
This was a very helpful reply. Would you say the same in 2024? Establish the LLC for accounting purposes but don't move the property into it?
Post: Seeking knowledge: How-To for "crunching the numbers"?
- Posts 6
- Votes 1
Thank you all!!
Post: Underwriting spread sheets/ forums
- Posts 6
- Votes 1
I’m also looking for this! Is there a Bigger Pockets go-to deal valuation spreadsheet?
Post: Out of State Landlord in California
- Posts 6
- Votes 1
Originally posted by @James Johnson:
Justin,
If you can afford the prices in CA. then I guess it's just a matter of where you're going to buy, I live in CA. and I do own 2 properties here but I do most of my investing out of state..again it comes down to spending all your cash in CA., for the price of a CA. home you can buy multiple properties in another state, however, with that said the CA. home, because of the prices will be worth more and bring you higher rents...
James
Thanks James! While the rents are higher, it still wouldn’t likely be a short term investment since they likely won’t beat my mortgage right? More of an appreciation play?
Post: Out of State Landlord in California
- Posts 6
- Votes 1
Originally posted by @Andrea Lane:
Justin
Is this a property you live in or already rent out. If you currently live in it and it is in an area that is appreciating, you can make sure that it is rent ready: that the rent will support your costs: and bet a good local property manager. Since you may want to stay there while you visit, are you thinking of it as an Air B&B, that has a different criteria.
I am a buy and hold person. We have SF, MF and small apartments and almost all of them are out of state. It is definitely doable but a great Property Manager is really important.
Thanks for your reply! I currently rent in North OC. I’d be interested in living in the prospective home for the next 6-7 months then moving and keeping it as a rental property.
Just not sure that’s wise as it will drain my cash and possibly serve as a headache long term, unless the property manager absolves that?
I like the idea of having it as an Air BNB because it would be nice to visit however that sounds like a bigger headache? Or can property managers take care of that too?
Post: Out of State Landlord in California
- Posts 6
- Votes 1
Hi there, is it wise to live in another state but have a property in CA? Or more headache than its worth? I live in CA now but plan to move out of the state soon. I am wondering if it would be wise to get into a property now, spruce it up, and then rent it out with a goal of having a long-term investment and also maybe having a place to stay at when I visit. Thanks!