All Forum Posts by: Leo Gonzalez

Sorry I won't be able to make it tonight but definitely looking forward to the next meeting!

@Robert Rodriguez

Hey @Barb F. I would definitely be interested in attending that week. Thursday is easier than Monday if it’ll be 7-8:30. But if it’s earlier then either day will work.

Hello BP! I was wondering if anyone could recommend a solid property manager they trust that works in the Alexandria VA area. Looking to get an idea of what the rental market is like at the moment.

Does anyone have a Real Estate savvy CPA in the NoVA area that they recommend? I only have one property which is out of state but I'd like to be proactive in setting up a tax strategy that will work for my situation and goals. Any help is appreciated!

@Tommy F. Thanks this will help me design my goals a bit differently! Much appreciated

Thanks @Tommy F. and @Irina Belkofer That makes perfect sense! If I do indeed purchase a property each year as I intended then there will be a new loss to offset some of the income. This definitely helps. Does this balancing act also exist with larger commercial sized properties? I guess the numbers are all relative?

After successfully purchasing and renting out a duplex in Syracuse NY I've started considering the tax implications of the gross income I will be receiving. The analysis I did on the property accounted for expenses like vacancies, repairs, and capex, but if that money does not get used by the end of the year I'll have to pay taxes on that PLUS the cashflow. Now income tax may not always be a concern for investors whose rental income profits are shielded by the interest on their mortgage payments, depreciation, property taxes, management fees, and repair costs, but shouldn't income tax be another "expense" investors budget for when investing in low cost (Below 150k purchase price)/High cashflow properties? 

If there is something I'm missing please let me know. I've been doing as much research as time allows and I cannot wrap my head around how a low cost property can operate at a paper loss (or close to it) when there is high cashflow. I had planned to use all the cashflow to buy additional properties every year but if I can only use a portion of that cashflow then all of my goals will have to shift significantly.

I guess this begs the question of whether it's better to invest in properties that are more expensive with less cashflow (but operate near a paper loss) or less expensive properties with more cashflow (but operate at a taxable profit). Ideally I would prefer to have less roofs and more doors that help me reach my goal of financial independence (8k per month) but if that's not possible with low cost properties then what's the best rental portfolio design that I should strive for?

Thanks @Pat Goodyear and @Christopher Phillips for the insight. Guess I'm better off using conventional financing. After passing that 4 mortgage threshold, are there portfolio lenders in Syracuse that are willing to provide financing?