All Forum Posts by: Michael Dunn

Steve K.  ,  Caleb Heimsoth  and  Daniel Hyman 

Thank you all so much for your replies............... a wealth of Information and very very Informative .......... Thank you all 

I wanted to add something real quick and get everyone's advice / Answer to if my thinking on the Following question is correct.

Question:

 I def. want to show all the Rental Income I receive, via Income Earned . 

I am trying to get to where I can start to work Less from my actual job, by having the Rental Income I receive, help offset my Income from my Job.

This is the main reason that I want to make 100% sure, that Lenders will use the Rental Income, as actual Income earned. Because if I start to work less at my current job, thinking they will use the $14,000 in Rental Income , but then come to find out that they will NOT use that $14,000 ............This would not be a good situation.

I want to purchase another Rental come the first of next year ........ so knowing that Lenders will use the Income from Rent ALONG WITH my income I earn from my Job, I will be covered and thus able to qualify for a Loan to purchase another Rental .......... hopefully 

Rental Income + Taxes + How will this come out on taxes ?

I need some help and confirmation please, given as how have the year is now over and 2017 Tax season isn't all that far away . This year will be the first year that I will have had 2 Rental Properties Income received from both for the year will be about $14,000
My Questions please are:
1. will this $14,000 from Rental Income be counted as actual Income I earned/Received to Lenders ? Meaning ............ If this will use this $14,000 as my actual Income, then I can then add this $14,000 with what I earn from my Job, and this will therefore Increase my Income for 2017 by an extra $14,000 yes ?
  2. Regarding paying Taxes on the $14,000 ............. since this will all be from Rental Income , what will I be able to write off ( as a whole ) ? And will I have to most likely pay Taxes on the full $14,000 , or after Deductions and Writeoffs, will I likely only have to pay Taxes on say ............. 1/3 of this $14,000 as a ( most likely scenario ) ?
3. What is the Percentage that you have to pay on Rental Income .......... is it a set/standard % or does it vary dependent upon the Individual ?
Thank you so much for any and all help 

Harjeet Bhatti ,

I thank you for your reply too 

To my most previous reply ........... using 75% of Gross Rental Income as the amount that most Lenders will use in their calculations............ It's safe to assume that  $11,000 with be the " Gross " / number that the Lender will use, when factoring in the amount of which I qualify for, in regards to getting a loan ............... the  $11,000  +  what I ear from my Current Job ? 

James Qiu , 

those are Great Point, thank you for sharing

I am Not a real-estate professional ......... just someone who is trying to accumulate some Rental / Investment properties :)

I had forgotten that they will only use 75% of Monthly Income I receive , in their calculations .

Given this , i can safely assume, that for a Monthly " Income " from Rental income alone.............  They'll use  $950 as my GROSS monthly Rental Income ?   So about  $11,000 total for the year ?

Chris Mason ,

Thank you for your reply 

I have found a Portfolio Lender here in my area, and from talking with my Lender with whom i initially purchased the Property through , she stated that they are Very Investment Property friendly 

For 2016 taxes, i took the full amount of Deductions and Depreciation as i could, as to lower the Amount I'd have to pay taxes on , ENEN THOUGH It shows my Gross Income ( as a whole ) as a lot less , had I NOT taken all the Deductions and Depreciation .  My Lender said not to worry about the " Low " number that it is showing on my Schedule E , as this Lender  ( the local Portfolio Lender , of whom she has done lots of business with over the years ) , will look at the amount of Rental Income I took in , IN TOTAL , and not the number that is left at the Bottom of my Schedule E  9 the Low number from taking the Losses/Deductions/Depreciation ) ............ She said I'd be fine  :) 

I am just wanting to confirm this, and here from others, if they too have found Investment Property friendly Lenders who Look at the Amount of Rental Income  via the BEFORE amount 

If everything looks good, and this local portfolio Lender looks at my Schedule E in the way in which I was told, then I will likely for 2017's taxes, go ahead and take as many Deductions and Depreciations as I can ............. Less I have to pay Taxes on  :) 

Rental Income and how it shows up on your Taxes as Income ??

Can someone please help me in understanding the way in which the Rental Income received will be " Counted for " on my 2017 taxes .
Example: Let's say I received $15,000 from 2 rentals for the year 2017 Would this Rental Income be Added with the Money I make from my Job ?
Continuing the Example ........... If I made $30,000 from work in 2017 and $15,000 ( received ) Rental Income from 2017 , would the two of these be added together , showing a combined Earned Income of $45,000 ? I want to make sure that Lenders will use the $15,000 from Rental Income , in my Overall Gross Income in their calculations for my DTI , etc.
  Thanks so much for the help

Craig Curelop , 

Thanks so much , I appreciate it 

I'll take a look at that book for sure 

Craig Curelop

Craig Curelop

Good Evening,

I am wondering if you can take the same " Losses " every tax year on each of your Rentals , as you took form the previous year ?

I Have one rental, and for 2016 I took all of the Writeoffs/Losses that I could  (  Taxes, Insurance,Interest, Depreciation )

I am wondering if I can continue taking these same Losses on this Rental , each and every tax year, and also for the same amount in writes as I took on my first year of owning / filing this Rental ?

Thanks so much for any and all help 

Dell Schlabach ,

Thank you for your reply , I really appreciate it 

Can you please give an example, as to how the following would work  :)  " Around here there are a couple that will fund 80% of the purchase price and then give you the money for renovation up to 70% or 80% of after repair appraisal. "

Assuming the Purchase Price is $55,000 , the Repairs / Rehab costs $20,000 , and the ARV comes in at $115,000 ?

Will they Lend you ( as a Total ), 80% LTV of the ARV ?

Thanks again for all of your help - Michael 

Dell Schlabach

Harjeet Bhatti , 

Thank you so much 

Harjeet Bhatti