All Forum Posts by: Mohammed Abdullah
Mohammed Abdullah has started 2 posts and replied 20 times.
Post: NEW investor ( any tips would help)
- Posts 21
- Votes 15
Quote from @Arlene Dayoan:
Mohammad,
Sounds like you're on the right track to real estate investing. I personally like investing in 2-4 unit properties because you have options with the property such as the house hacking or just straight up buy and hold. I think updating the unit is a solid plan so you can cash flow and add value to the property. Good luck on your real estate endeavors!
Post: NEW investor ( any tips would help)
- Posts 21
- Votes 15
Quote from @Ryan Irwin:
Quote from @Mohammed Abdullah:
Hi everyone, New to the multi family investing, me and my wife are purchasing our first property it's a duplex in a very good location. ( in Johnston Iowa ) everything a tenant would ever need is only 10-20 minutes away. we are house hacking living in one side of the duplex. My plan is to live in it for a few years. One unit is remodeled and I want to do the same to the other unit Once the tenants move out. Increase in appreciation and equity and the tax benefits. We are using a VA loan it's the 80/20 2 loans.( no money down) no cash flow now but I believe it will cash flow once we update the unit, increase rent and refinance. It's 1025$ right now with a long term tenant of 14 years. Once I refinance in 4/5 years im hoping I have enough equity to use on another property( 4 plex or another duplex or maybe team up for something bigger) Does anyone see any flaws with my plan or adjusting needed ? Any tips? Any Feed back? Or has anyone house hacked in Des Moines? Any advice would be greatly appreciated
Thank You,
This is great, congrats on taking a smart and solid approach to your REI portfolio! Sounds good to me. One thing you could look at is value-add with the existing tenant. Are their amenities you could add to help boost their rent? Regardless, continue to adjust rate as market dictates (especially in Johnston in what sounds like a great location). To add on what @Kristine Hodges said, there is also a meet up the 2nd Tue of the month at 5:30 PM (if evenings work better for you). Keep up the journey and keep connecting!!
thank you so much for the input, I believe right now both units are under market rents the average rent in the area is 1100$.
beside location, the duplex itself comes with extras many don’t have a deck, walk out basement, extra bathroom and a garage. The plan would be to remodel one of the units, and finish the basement to make that walk out into a full living space area/ room/ something useful. I was thinking sense I’m going to live in one unit. I can include internet and cable to stand out sense I’ll be using those anyways and split the bill with the tenant and write half of it off for taxes.
Post: NEW investor ( any tips would help)
- Posts 21
- Votes 15
Quote from @Mason Weiss:
I think it is a solid plan as you get started. Life changes fast in 5 years so be ready to pivot but it is a good strategy.
Thank you, real estate is life changing if done right and im not in a hurry I want to play the long term game
Post: NEW investor ( any tips would help)
- Posts 21
- Votes 15
Quote from @Kristine Hodges:
There’s a meetup on Friday mornings at 7:00am at Smokey Row in Des Moines. Hosted by @Darson Grantham. You’ll meet lots of local investors that can give you great tips. I’ll be there this week.
thank you Kristine! Will look into that appreciate the tip
Post: NEW investor ( any tips would help)
- Posts 21
- Votes 15
Hi everyone, New to the multi family investing, me and my wife are purchasing our first property it's a duplex in a very good location. ( in Johnston Iowa ) everything a tenant would ever need is only 10-20 minutes away. we are house hacking living in one side of the duplex. My plan is to live in it for a few years. One unit is remodeled and I want to do the same to the other unit Once the tenants move out. Increase in appreciation and equity and the tax benefits. We are using a VA loan it's the 80/20 2 loans.( no money down) no cash flow now but I believe it will cash flow once we update the unit, increase rent and refinance. It's 1025$ right now with a long term tenant of 14 years. Once I refinance in 4/5 years im hoping I have enough equity to use on another property( 4 plex or another duplex or maybe team up for something bigger) Does anyone see any flaws with my plan or adjusting needed ? Any tips? Any Feed back? Or has anyone house hacked in Des Moines? Any advice would be greatly appreciated
Thank You,
Post: Cost segregation study/ Tax planning
- Posts 21
- Votes 15
Quote from @Julien Jeannot:
I would suggest having a CPA run the math on your particular situation. Some firms specialize in cost segragation and can provide you with estimates.
Post: Cost segregation study/ Tax planning
- Posts 21
- Votes 15
Quote from @Nate Meeker:
Under the passive activity rules you can deduct up to $25,000 in passive losses against your ordinary income (W-2 wages) if your modified adjusted gross income (MAGI) is $100,000 or less.
This deduction phases out $1 for every $2 of MAGI above $100,000 until $150,000 when it is completely phased out. These limits apply to both those filing single or married filing joint just with different limits.
So, if this is you, it will most likely be worth it so long as the cost to complete isn't extreme. Note, state taxes might have other limits.
together we make 121,950k gross
And around 85k net
Post: Cost segregation study/ Tax planning
- Posts 21
- Votes 15
Quote from @Michael Plaks:
Thanks for providing some details.
Reliable responsible advice cannot be given in an online forum, because there're many other factors in play here. So here's an informed guess, and I stress - a guess.
There is likely a benefit for you in cost segregation. However, full-service cost segregation study may not be cost-effective, i.e. it can cost you more than the tax benefits extracted. Consider DIY cost segregation: https://www.biggerpockets.com/forums/51/topics/1136752-expla...
But thank you so much
Post: Cost segregation study/ Tax planning
- Posts 21
- Votes 15
Quote from @Michael Plaks:
Nobody can answer whether cost segregation is beneficial to you.
We need to know the cost and condition of the property, we need to know your income and your overall financial situation, we need to know your other investments if any. One size does not fit all.
Sorry I’m new to this I can answer some of These questions…
Purchase price is 284,500 Land on the assessor says 48k as of 2023, income it’s me and my wife gorss 122k net is about 83k no other investment condition is very good passed inspections it’s a duplex 1870 sq built in 1989
Rent for one of the sides is 1025 for the year it’s 12300
Post: Cost segregation study/ Tax planning
- Posts 21
- Votes 15
Hi everyone looking for some input or help if possible, purchasing a duplex with my wife closing this November and we want to start out on the right foot. We are owner occupying one of the units and renting the other one out 1025 and it’s under lease for 6 months. Looking to see if it’s any benefit in doing a cost seg. Or just using the straight line method the duplex is not cash flowing at the moment. I want someone who can helps us plan the tax side of it or any input would be greatly appreciated
Thank you,