All Forum Posts by: Keith Thompson

I'm looking to buy a cash-flowing duplex for cash from a wholesaler and then refinance out later, basically the BRRR strategy.

If I don't use financing for the initial purchase of the house, can I actually deduct the interest on the cash-out refinance on my taxes?  Is there a time limit to get financing on a house before it is no longer considered a "purchase" expense, and therefore interest for the life of the loan is no longer deductable? 

FYI- this is an individual purchase, not LLC.

I'm looking at closing on my first rental properties and am pretty confused on the title search/insurance process.  My closing estimate includes:

Title- Lender's Title Policy- $372

Title- Settlement Fee- $680

Title- Title endorsement fee- $87

Total is $1139 for title services!

This is in NY state (not NYC) and on a $~60k property with ~$45k loan.  This seems pretty outrageous.  So I've gotten quotes from title insurance companies for about $500 or so- does this include search, insurance, and everything I'll need for closing?

Thanks for the recommendations.  I went through Warren Engineering and the process went smoothly.  I would recommend them in the future. 

Just had a bid accepted on some multifamily properties and I'm looking for recommendations on home inspectors.  Rochester is just outside of my area, so I can't use someone I currently have a relationship with.  

Anyone have a good recommendation?

Although I owed a duplex as a primary residence in the past, I'm just now getting into multi-families as investment vehicles- mostly buy and hold for cash flow.

My income is moderate, but combined with my wife's we regularly have a gross income over $100k.  I understand that there are deductions that start to phase out with higher incomes, by I'm not sure exactly how this works.  

So what phases out?  

a. Expenses?  I'm assuming that all expenses (management, taxes, water) etc. are deductable.

b. Depreciation- I'm more concerned about this one.  Does depreciation phase out for both capital improvements (shortened schedules) and purchase value (27.5 yr.)  

If so, how would I go about lowering my AGI (MAGI?) to below the phase-outs?

Any resources for a clear and concise discussion of this would definitely be appreciated!