All Forum Posts by: Pat McQuillan

Thanks all. An important thing to note is that my W-2 income is outside of AGI limits for all of these deductions. No one mentioned this as a factor, but I assume this would severely limit/prevent me from deducting anything other than depreciation?

Hi Drew! I understand there is an AGI limit that applies, restricting my ability to write off certain expenses if my AGI exceeds a certain amount.

Regardless of what can/can't be written off for my particular situation, I assume the majority of the tax savings I am able to write off would come back to me directly in my tax rebate, correct?

Might be a silly question, but this is true from what I understand. For example, if I wrote off $20,000 of deductible expenses for my property in my personal return and my effective federal tax rate was 25%, then I would expect the see an additional $5,000 (25%) included in my tax rebate for that year. Am I thinking about this correctly? 

Hi Everyone,

I'm based in CA and will be buying an investment property in MA/NH/RI in the next 6 months. I will not be using an LLC and so will pay landlord insurance and be able to make deductions directly from my personal income. I understand federally I can deduct payments on mortgage interest, property management fees to my onsite property manager, maintenance, etc. I know certain things like insurance, etc. can't be deducted.

Are there are big missteps I should make sure I'm not making in my assumptions/landmines I shouldn't step on to make sure I can deduct these expenses and receive the right rebates in my tax returns at the end of the year?

Cheers,
Pat

I'm seeing listings for $500k - $650k all over Providence (outside of College Hill) for properties with 2 units. It looks like rent can very reasonably be 2.2k - 2.5k / unit. With a mortgage of ~3.2k and monthly fees/taxes/maintenance being about 1k, it looks like these properties would turn a cash profit in the first year. 

Is this a pretty reasonable expectation for providence MFH? Assuming you don't rent to students as I don't want to have that kind of liability.

Hi Everyone,

I'm a data scientist interested in buying out of state property, and it boggles me how difficult it is to find US-wide real estate market data at the metro/city-level. Zillow's API is no longer offered (or they make it extremely hard to access these days - have had no luck finding an updated link/page for it), Redfin has broad-stroke CSVs you can download that only give 5-10 fields of info and not often at the metro area, you can't legally create a tool to crawl these websites...

I'm looking for 1 (or a handful of sources) to pull together basic metrics at the metro/city level for US real estate. I know the data is out there. I'm basically looking for the following fields (or whatever I can get):

- Median Sales Price

- Median Rent

- Vacancy Rate

- 5 or 10-year Property Value Appreciation Rate

- Any historical values for the above to compare against current

Any tips/bits of wisdom folks can share would be appreciated!

Hi Guys,

I know this is a bit of an unorthodox post for BP, but I'm moving to San Diego to start work on 1 April and am searching for housing/apartment sharing options in La Jolla/Del Mar/Pacific Beach/University City. My ideal rent would be no more than $1,500/mo.

Not sure if anyone is looking to fill any rooms out in the next couple of weeks, but if so let me know and I'd love to talk about a potential move-in! 

Cheers,
Pat

Thanks for all the awesome feedback! I expect the tax benefits are very different if these properties were owned under my own name rather than an LLC?

Hi Guys,

I'm planning on incorporating a single-owner real estate holding LLC in Delaware/Nevada this year and am wondering what the tax advantages are of doing so. The LLC will focus exclusively on residential multi-family properties. I will be working a full-time job alongside running the LLC, so I will have two different sources of income.

I understand the LLC serves as a pass-through entity and therefore all distributions are taxed at the individual level on my 1040. Deductibles (mortgage, insurance, D&A, etc.) have already been subtracted from the top-line in the company's Schedule C, so I presume these items cannot be deducted from my personal income on my 1040?

Essentially I am hoping someone can explain in clear language exactly what the tax advantages are to owning this type of LLC.

Thanks!
Pat