All Forum Posts by: Mark Holencik

Any expense you have to operate your business is a deduction. You really need to get a CPA to do your taxes and advise you about these things. Your accountant will know everything about your finances and will be able to give you the best advice on tax stratiges. The suggestions you get here may not be the best for you. 

I know that from personal experience. I read something here that sounded good. Went to my accountant and asked him how to include that in the deal I was doing. He said that the paper trail you needed to use that as a deduction was not worth the time and effort for what I was doing.

 To the investor I am talking about "appreciation" would be the least inviting of the benefits I listed. The more you can see, the farther you can go. I gave you some very profitable information if you can mine it. 

Appreciation means nothing if you never plan on selling the property.

Growing up I met a lot of millionaires that  people laughed at, because of the jobs they had and the vehicles they drove and the way they dressed. They never could see that these people could have bought and sold them.

I have 650,000 sitting in a savings account earning 1/2%.  I buy this property and start earning 3%.  This is a plus already. Now I add depreciation. In 30 years I also doubled my money when all the money is put back into my savings account. Plus any appreciation. Plus any rent increases over the next 30 years.

Sounds like a good deal to me. 

There are a lot of people with that kind of money in their savings accounts.

If 3 are rented out why do you need to dip into your reserves to cover expenses?

I can see needing capital for renovations. 

You do not let the building get empty. If this happens you need to sell the property.

What are the finishing touches? Why is it empty?

You get 1 unit rented. Then move on to the next unit.

 That is what I said wait for the 24 months and sell.

It will take a 133 months to make $100,000 at $750 a month. Renting it out does not make sense.  You would make that in 24 months.

Get over paying taxes. It means you made money. Pay as little as possible then move on to the next deal.

I would work on it from 2 directions. 

1.Figure out exactly what you need as an income. 

You do not need to put anything into your retirement accounts anymore. You do not need the work clothes you do now. What expenses do you have now that you can live without.  Go through you list a couple of times. The.re are a lot of things you could eliminate.

The lower you get what you need as an income the closer the day to leaving you present job will be. Once you leave your job you can start to add all those things back into your budget as you buy another property.

2. Buy one property to see how much is involved. This may not be for you. 

 Is there a law saying I have to sell to the highest offer? 

 The next question is how do I make this easier on the family. It is not about the money. If it is only about money you will get tired and unfulfilled. 

Some days you do not make any cash.