All Forum Posts by: Pierre E.

Thanks guys! very insightful!  Any thoughts on pros/cons on strategy?  I could see this potentially helping if one wanted to put in a specific amount of equity for one  to cashflow with plans for selling the other in the future or something... but still  contemplating the idea!

Hey BP people!

Question about options on splitting debt and equity in a 1031 exchange when using it to purchase multiple nee assets

If you take a property, 1031 exchange it into multiple properties lets say one property 500k value with 200k debt into two new properties lets say property a is worth 250 and property b is worth 350k Could i purchase with property a owned free clear no debt, and then property b 50k equity plus whatever else I add in from purchase?

Are you allowed to choose %equity among the new purchases or do you have to keep the same ratio of equity from previous property into the new properties?

@Christian M. Conroy

Best way this makes sense is fha203k and buy a property that you can force the appreciation and then refinance

Fha alone for wealth buidling is not ideal without a plan for equity build due to all the fees they have

@Nathan Gesner

Right. I actually didnt even think of keeping the interest. I saw it on a state website and thought about it being more straightforward than holding in an open checking account. Just open a cd per lease term, instead of commingling deposits or opening an account for each lease

 $12,500 per Month in 'Pure Cash Flow' With Todd Baldwin | BiggerPockets Podcast 392  
Rent-By-The-Room to Riches with Todd Baldwin

How Renting By The Room Doubled This Investor's Rental Income | Best Deal Ever Show - Frank Furman  (Padsplit)

What is going to be the length of the lease?  What type of tenants would actually be typical to find in that area? Are you near any office buildings, downtown, or a college town?

I would definitely suggest Furnished Finder as a start, many traveling professionals use that source. We have used it for the MTR approach we are starting. 

Some people use Facebook, Depending on the term length, some use AirBNB and list as 30+day stay but again, comes down to your desired lease terms.   Zeus Living is another one I have heart of. 

Also good episode gonna definitely take a listen "150+ Tenants & Zero Stress w/ Coliving Black Belt Sam Wegert"
I think there was a guy in Seattle, and another guy in ATL that were also doing something like this. 

Has anyone used a certificate of deposit to hold a tenant lease security deposit? Upsides? Downsides? I saw it on a state government website for holding security deposits and never heard of it. 

Could deducting real estate losses against your earned income affect the amount of income you can place into a 401k or Solo 401k?

Example: if you claim REPS status or you use the STR active status to deduct a total of 100k in tax losses from your earned active regular work income from your job as a plumber contractor where you earned 100k (in net business income after business expenses etc)

Such that your tax bill is zero, and you normally contribute to a solo 401k as employer would that prevent you from making any contributions?

For additional technicalities lets assume you work for a company w2 as a plumber and maxed out your company 401k and also work for yourself on the side, so the only way you can save that income is to contribute as an employer.

Main question: when deducting rental tax losses from your earned income does come before or after your 401k savings on the above/below the line list of tax deductions.

Note: the above is not my actual personal scenario I gave it to help illustrate the question I am asking. Not seeking tax advice, trying to understand how deductions work.

@Natalie Kolodij

The cost seg and bonus depreciation is done over a few years? Does that mean the tax savings is spread over a few years? I was getting the impression your tax savings was all year 1.

Also curious about length of time / number of years the property was used as an air bnb. How many months or years are needed to operate it as an STR before you are allowed to apply it to taxes as non passive income (assuming other requirements are met) ?

 any notes on cost? ballpark?