All Forum Posts by: Sean H.

You're going be hard to find houses that give you the magical 1% return, but you should figure out what number is acceptable to you.

Budget?

mls

When a CPA does your taxes, are they willing to sit down with you and explain all the intricacies they did, or do they charge you 100-300/hr on top of the filing fees to explain? Also, what guarantee can they give you on an audit that tax software cannot?

Either way, i missed my deadline for a CPA. I'm enjoying learning all the details of tax law in the real estate sector. 

I was doing turbo tax, and im surprised that it is changing my return based on the number of months i claim i used the residence as my primary residence. 

I realize over two years is tax free, but im not trying to do this. 

I had stayed there for 19 months, and it claims my income is totally tax deductible (which is weird). So out of curiosity i lowered the number down a couple of  months (all the way down to 13 months), and it gave me a different number every time i changed the number. Is this a flaw in their software, are is there really a deductible based on time less than 24 months?

I also realize that over a year is long term capital gains, but that is not my question either. 

Thanks. Can you mix retirement money in an investment? Solo 401k and self directed IRA, assuming none of your non retirement liquity is mixed?

@Jonathan Taylor Smith. 

You bring up an interesting point, so lets run the numbers. I always pay in cash, so i don't really know a lot about refinancing fees, so please correct me on that. Ill use a recent example. New construction house - sale 375k. Land cost- 0 - Lot subdivided. Build cost- 160k. Realtor fees 4% - 15k. Net profit, 200k. If contribute the maximal sep 401k - 54k. My new net income for the year is 146k- with self employment tax and the standard 199a 20% deduction ,my net tax is about 17%, plus 5% for state. Lets round that up to 25% to be safe. So, roughly 110k netted, plus 54k in retirement money (which after 4 cycles i can fund a remodel/build entirely on retirement money). 

If i kept that 375k dollar house, and refinanced it. What am i paying in fees, 4-5%? And i would probably make 2000/month. Minus property taxes, repairs, and mortage interest if i fully cashed out =22-25. Im netting zero?  So, i have about 270k to play  with (keeping the mandatory 30% in). I still have to buy a qualified property to utilize the money (no raw land, no gutted houses? Do i have to pay new financing charges/fees to acquire the new property with bank money? How much money do i actually have to play with after all the bank fees?

Why would you want to invest in durham right now for rentals? Great market for flips and new construction, but I don't see the numbers for rentals. I'm getting ready to unload two sfh flips in the next month or two, a 2/2 for 200 and a 3/2.5 for 250. I could only see renting them for 1200 for and 1500, so i figured it made more sense to just release them. 

I know with self directed iras, you are excluded from investing into family members. So, my girlfriend (no legal ties, other than the same address) has a lot of money in her self directed ira, and i will as well. If we each bought investment properties, could we each invest into each other's properties, so the opposite party whose money is invested into can freely spend their own money on the property?

*I already know you cannot mix your own money with your self directed ira money (hence why i came to this idea), and i know the stipulations about the loan having to have a set return (not a cut of the profit). 

I bought a house for 175k. Im keeping the house intact, and creating two new lots which i will build on this year. When it comes with paying income tax, will the two new lots be considered 0 dollars, or can i assign them some values to the land to make the gains on the house greater? I probably sell the house for 180-200. But the new construction houses will be sold for 375-400, so I would like to assign them something higher than zero if i can.