All Forum Posts by: Nathan Mansur

Properties #1 and #2 are both duplexes. We are claiming the rental income from tenants in the other unit.

Hello,

I have three unique properties that I own and manage. First property is owned by my mother ( she is an owner-occupant), second property is owned by myself ( owner-occupant) and the third one we own together along with an investor through our real estate management company.

The real estate management company collects all rent, manages the online listings, and writes checks for repairs. My mother does the books and I manage the rental contracts and do some of the repairs or meet with contractors.

How should we classify the income from each property and file taxes? Should I only claim the expenses and income for property #3, the 10% management fees for property #1 and #2, other rental listing costs, and business legal fees etc. on the business? Then pay the net profits and send out K-1 forms to myself, my mom, and investors?

Then have my mother list property #1 expenses/income on her taxes, and property #2 expenses/income on my taxes?

Lastly, how should I handle property transfers? Say my mother moves out of her home and we transfer the deed/title into the business. Does she claim repairs/income for the first half of the year on her personal taxes then the second half is claimed under the business?

Thank you in advance for your help and clarifying my questions. Please let me know if there is a more clean way to hold/manage these properties, and maybe if having a professional do my taxes is a good idea. I've been doing my taxes this way for a few years and I always feel uncertain if I'm do cost basis and depreciation schedules properly.

Welcome to BP @Justin K.! I am also in the Buffalo area investing in properties, building a portfolio. I currently have 9 doors and looking to acquire another 6 in the next 12 months. So you are looking to use the equity in your current duplex to put a down payment on a second rental? This sounds like a great strategy if executed well. After paying down the equity on those two rentals ( your current and future one) then you will use that equity to buy a single family? Why not just save up enough cash with your cashflow from the rental units to get 3% cash down with FHA and leave the equity in your rentals to be used toward building your rental portfolio?

Thank you for this post and responses! These concepts of LLC formation vs. syndication and how to form different LLC's with operating agreements can be a huge advantage when trying to fund your next deal while still keeping assets protected. This thread definitely helped me add to my toolkit of knowledge.

Welcome to BP @Mark Halecki! You're definitely in the right place. I graduated from the University at Buffalo in the Fall of 2014 with a Mechanical Engineering degree. I've been living, working, and investing in Buffalo since then. I'd love to share stories and meet another UB almost alumni. Robert Kiyosaki is the man, Rich Dad Poor Dad changed my entire world. Welcome to the "real world" you've just swallowed the red pill, my friend.  Again, welcome, and good luck on your journey!

Anyone feel free to comment about this, but don't you have to own 70% equity in the home in order to do a cash-out refinance? How are you going to borrow against the property if there is already a 30-year note on the property?

Hi Peter, are you looking for some boots on the ground in Buffalo to find a few properties to invest in?

Hi Cassidy,

I own four properties in and around the Buffalo area. What are you looking for with price range? I'm a big fan of South Buffalo ( family friendly owner occupied, established areas), Kenmore, University heights ( near University at Buffalo South Campus), and east part of Black Rock/Elmwood Avenue ( near Buffalo State College Campus). PM if you want to chat more.

The link to RJ Gullo's meeting on the third Tuesday of every month is below.

http://rjgullo.com/investors_and_exchangors_group.html 

I'll be attending the next one to meet investors from the area and network. I'll be sure to also add the meeting in Williamsville to my list, thank you @Sam Tato.

Welcome @Nick Corto!