Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Ken Press

Ken Press has started 2 posts and replied 7 times.

Looking for rules of thumb or suggestions to estimate utility costs for STR properties purchase.

Is there a way to pull actuals online somewhere? Looking in Hudson Valley NY


thank you

Post: Looking for Mentorship in Essex County NJ

Ken PressPosted
  • Posts 7
  • Votes 1
Quote from @Ben Trageser:

Looking to have a mentor in the Essex County, NJ (Montclair, Verona, Caldwells) area. Currently have one multi-family property in West Caldwell and looking to scale. I'm an accountant and have experience in workforce consulting as well as expat/foreign national US tax.

Looking for mentorship on how to scale multi-family portfolio and how to secure deals in this competitive market. I also have an interest in learning more about the commercial sector and development.

Thanks!


Check out Jonathan Greene’s podcast and website. He hosts monthly networking sessions in the Montclair area. I’m attending my first on March 1. He’s all about mentorship and leaning. 

I'm also a newbie w one STR and thinking about long term as a next step. I'd be interested in meeting for a coffee around mtc/Verona/Caldwell if you're inclined.

Quote from @J Scott:

Thanks @j Scott! Really appreciate the deep response, and the effort to correct typos. 

One more arbitrage question. In addition to the TVM of getting money now (or next April 15) w the bonus depreciation tax write off in year 1… Would I also be gaining the difference between bonus depreciation money now offsetting ordinary income at a 37% tax rate vs the future sale recapture at capital gains rate of 25% (assuming I don’t 1031 into the next property)? 

Example: On a $100,000 depreciation that would mean paying $25,000 in taxes at the future sale date vs $37,000 tax offset today. So an additional net $12,000 in todays dollars  

Do I have that right? 

Thank you! Great answer… exactly what I was hoping to figure out.

Thanks again. to clarify: I'm not w2, but my spouse is. 

Fair point on personal vs business. 

Quote from @Greg Scott:

Unless you are a real estate professional or below the income threshold, Bonus Depreciation is probably not going to take much off your W2 income tax bill.  Talk to a CPA.

That aside, I wouldn't intertwine personal taxes in the IRR of the deal. Once you had a portfolio of properties, any action on one would then affect the return of all your properties, which makes no sense.

Thanks Greg! I plan on doing the hours to be a REP this year so it will offset w2. 

the bigger picture here is: I’ll get a lump sum in my 2024 tax refund. Where/how do I value that in my property investment? 

I'm reading through "Real Estate by the Numbers" -- awesome book! As I'm modeling out my second STR, I look forward to taking advantage of 80% Bonus Depreciation for tax year 2023, and claim that against W2 income.

So let say I use 20% of the value of the home purchase price + improvements as a rule of thumb for the depreciation "loss" that i'll get back against my W2 in April 2024.

My question is: Where do I realize the value of that incremental federal refund check I will get in the mail in April 2024 for my 2023 purchase? Do I put it into an IRR calculation in April 2024? And do I have to account for the impact of the bonus depreciation on my cap gains when I sell the place, say in year 10 of the model?

I'm guessing there's a spreadsheet or blog or something out there that would help... I was kind of hoping it would be in the book. TIA!

(my first post, and just want to add that the biggerpockets community is amazing. 5 stars all around).