All Forum Posts by: Parth Patel

I keep hearing an average of 7 days or less on podcasts, but when I search online, multiple sites state 30 days or less and I also looked at my city law and they consider short term as 30 days or less. So what really is it? What's a STR in your area? Fyi, I am in Virginia.

I've read there are different ways of partitioning the deductions from personal and passive, either sq ft or number of bedrooms. If I'm staying in 1 bedroom out of 4 and renting out the other 3, I believe my deductions would be 75%. If however, I only used the bedroom sqft, then the shared spaces aren't counted I would have a much lower deduction %. Which one is typically used? sqft or bedrooms?

Did some research, seems like any "profits" after depreciation, HOA fees, property tax, mortgage insurance will be taxed at my W2 tax bracket of 40%.

Hello guys,

While I've listened to many bigger pockets podcasts, I'm new to the community and this is my first post. At 30 years old and after a long educational journey to become a doctor, I'm finally at the point in my life where I will be able to purchase my first property. I have close to $200k in medical school debt and about $30k of savings that I can use for a down payment or closing costs. However, I also have the option to use a physician loan with 0% down payment which I plan to utilize (my interest rate will be about 0.125% higher than a conventional loan). 

I was wondering what my tax benefits would be if I were to "house hack" and rent out a bedroom on a W2 income of $300k+. Yes, doctors should be rich enough to not need to rent out their house, but I'm still single and the argument could be made that I don't even need a 3 bed 3 bath house to myself, not to mention the increased risk of buying a property in a new state where you don't know if you'll like the new job. I feel this would be a good way for me to decrease my risk in case the housing market turns, good way to get into real estate and learn how to manage tenants, leases, taxes, and how to be a landlord. I'm also hoping I would get some tax benefits as I'll be paying close to 40% in taxes on my W2 income, and hopefully use the additional revenue to buy a second property the following year. 

Should I buy the townhome under a business as opposed to my personal name? Wondering if this would decrease my liability if I were to get sued by a patient. Secondly, would my taxable profits from house hacking be the total rent - the mortgage such that I can take a loss and reduce my taxable income.

Thanks!