All Forum Posts by: Marcus ONG

Thanks for the advice Charles... :D

@ Rob

Thanks for the great advice. I have done those calculations and the cash flow turns out positive. That's why the tax question came in. And I need further clarifications.

@ Shah
Thanks for your advice. 27 years came in because I am not so sure on the depreciation.

My goal is to keep for the long term and milk the property. But if I can't claim depreciation, then the tax expense will be significant. Of course that part has been clarified.

Perhaps you can send me your loan package on the PM? Or email via private channels? Bearing in mind I am not a local and I don't work in the US.
I will be setting up a LLC and I understand that I will have to personally guarantee the loan.

Hope to hear from u soon.

Thank you for the advice. Really appreciate it...

I had some shortlist and had worked out the numbers. If u can PM your email to me, i will sent you the worksheet.

I spent some months trying to understand the ins and outs of the RE regulations and norms in US real estate. I also took time to research on the location. Of course, it will come a point where I have to take my 1st step.

It took me a while but finally I found some lenders willing to lend to non-resident foreigners at reasonable rates.

I guess I will have to fly in to at least look at the 1st property and its surroundings. Nevertheless, I will have to rely heavily on the advice of the professional building inspector to fish out any major building problems. Minor is ok as any buildings will have some level of defects.

Its after some research work on tax that I come across this depreciation question which I am not so sure and need clarification. I have not got a tax accountant nor a solicitor to represent my interest ... yet...

Hi

I found some multifamily properties in the AZ area that gives pretty good cash flow.

However, they are pretty old and is generally more than 27 years old.

Increased maintenance aside ( I will have to engage a professional inspector to advise me as I am not familiar with the building code and on top of that I am not present locally), I am concern that I am unable to use the depreciation to offset the profit and the taxation will eat significantly into my profit.

Would appreciate if I get can some opinion on the matter.

Thank you in advance.

Marcus

Hi

Hope someone can enlighten me on the following:
1) tax rate on individual vs LLC
2) is there a state and federal tax component?
3) estate tax planning for non resident.
4) Depreciation for old house. What's the typical depreciation schedule?

Thank you in advance for your advice.

Marcus :D

Thanks Djjk1 for all the links

I am a non resident foreign national. Loan seems very difficult to come be even with 40/50 LVT.

More so for investment multifamily property. Wonder why? These properties typically will generate enough income to cover the mortgage payment.

Hi Dustin.

I am thinking of investing in some multi families. It's more to hold for cash flow than to flip for quick buck.

Thanks in advance. Marcus.

Hi Steve, that's a great help.

There are some sites which highlights the high crime areas. Petty crimes are pretty widespread which makes these meaningless.

I know auto thief is higher than average in the area.

Would appreciate is you can share some of your findings with me.

Thanks

Marcus

Hi.

I was looking around the Arizona Phoenix area for a high cap rate multifamily. And I found that those in the region of 10% are all in the low income area.

Is that a norm or I should be looking harder?
I am concern of all the problems that may come with the neighborhood ie higher crime/ drugs activities/ violence/ thief etc. Not to mention the quality of tenants.

Advice is much appreciated.

Also can anyone recommend banks or lenders who will lend to non-resident?

Thanks for the advice. Any particular area why that area is not desirable?

How about the more desirable and prestigious area?

If the location rating at Trulia any good? I Am currently using that as a gauge. And I place special emphasis on "safety" of the area.

Thanks in advance.