All Forum Posts by: Sean K.

If you are a REP spending >100 hours (assuming STR) on these properties and the majority of your time you should be able to move the losses to non-passive. U want a RE CPA.

So do you, Alex. REPS has nothing to do with STRs.

Thank you Michael, and Alex, and Zachary, and Kelly. Sounds like I should provide some details.

The W2 income is high through marriage; it is two W2s and a child deduction.

With all of that info entered into TurboTax I started putting in the info from 5 properties onto Schedule E. Normally Turbo Tax shows you how each line entry affects your tax return, numbers on top of the screen bouncing up and down. This year: nothing. No info from Schedule E had any affect.

SO. If you know any way I can get these deductions applied to this year or what I need to do to move the losses to next year, please let me know.

It may be true that it's time for a CPA and we have an excellent way to find that out, right here, right now: Which CPA here would take me as a client? Easy fix, right? I send you two W2s and two Schedule E's, 2 hours of data entry, big cash prize for both of us. Who's in?

Before filing the tax return can you download your returns forms from turbo tax?

In one of the forms you should see a list of unallowed losses that you can carry over for next year until you have a passive income you can offset this losses.

0 Votes

New York City, New York

@Crystal Smith What areas in Indianapolis you recommend?

0 Votes

Indianapolis, Indiana

Quote from @Evan Hopple:

@Sean K.
I invest in Columbus RE, huge growth to come from recent additions to the tech sector (google, intel, amazon, honda, and many start ups). Plans to were announced last month to invest $2B into the cities airport in anticipation of the population/business travel growth. It's still early to get in, plenty of deals that would meet your criteria

You are talking about Columbus, OH? What areas in the city you recommend ?

1 Vote

Indianapolis, Indiana

Quote from @Josh C.:

@Sean Keller

I can tell from experience your maintenance and turnover costs will be higher on 30th and east side Indy than Carmel.

This is a decent example, but there are nicer areas in Indy than this that would stack up better than Carmel (especially when you factor duplexes are plentiful in Indy) with only slightly more headache than Carmel vs the property you suggested which would be much greater headache.

What area in Indy you recommend?

0 Votes

Indianapolis, Indiana

@Jaron Walling @Gloria N Gear @Nick Giulioni @Tim Ryan @Dave E. @Tyler Lingle @Crystal Smith @Josh C. @Pam Brown,

I ran some numbers and this is what I found:

Carmel vs Indianapolis:

Parameters:

Growth:

Indianapolis IRR (5 and 10 years):

Carmel IRR(5 and 10 years):

As you can see they both have almost the same IRR.

If you are going to invest like $60k you can buy one house in Carmel or 2-3 Indianapolis.

2-3 in Indianapolis will be more headache and more doors to deal with for wear and tear and maintenance.

That's true the cashflow in Indianapolis will be a bit better +$96 vs -$136 for 10 years but the difference is not much.

In Carmel most likely you will get a higher quality tenants with more stable jobs. I guess less headache?

What do you think?

Do you see anything wrong with my assumptions or calculations?

2 Votes

Indianapolis, Indiana

Quote from @Pam Brown:

Quote from @Sean K.:

Quote from @Jaron Walling:

@Sean K. Carmel and the majority of Indianapolis are polar opposites.

There's a 0% chance you'll find cash-flow in Carmel. Around the greater Indy area you can find, negotiate towards, or create it. This depends on the neighborhood (sometimes street-by-street), strategy (value add?), and ROI you're aiming for.

We have a rental shortage. If it's a nice rental at/or slightly above market you'll find qualified people asap. People want houses over apartments especially if you have a basement or garage.

Thanks Jaron for your reply!

If lets say I buy this house: 10815 Broadway St, Carmel, IN 46280

Purchase price: 279,000

Interest rate: 8.5%

Down payment: 25%

Monthly payment (including tax and insurance): 1,835

According to Zillow Rent Estimator the house can rent for: 1,995

(Management I will do myself, I will repair everything needed before tenant moves in, to reduce repairs needed for first year).

Monthly cashflow: +$160

Is that realistic or am I missing something?

(I guess first 1-2 years cashflow will be only 160 but after then I can raise the monthly rent another 50-100 then cashflow will be 210-260)?

Hello! Yes, this ship has sailed! I looked it up to view the pics and it is now pending. It will be interesting to see what they got out of it once it closes. (Friendly suggestion-- I wouldn't give exact details on here if it's a hot deal! That just gives others the chance to pounce on your deal!)

I've sold a couple of duplexes right near this SFH in Carmel. Those don't come around often though.

Agreed with what the majority say on this thread. It's hard to attain cash flow in Carmel. Much more opportunity in the Indianapolis and surrounding areas.

Pam Thanks for your reply!
You are right! The address I provided was an example property. I will never share a hot deal here that I want to put an offer since most likely I will lose the hot deal.

2 Votes

Indianapolis, Indiana

Quote from @Dave E.:

@Sean Keller what does your research tell you?

Sometimes buying in a better area can let to less headache. I still need to investigate more. What you know about these locations?

0 Votes

Indianapolis, Indiana

Quote from @Tim Ryan:

That's too high a price out-of-state for a single family. I bought a 4-unit last year for $250k with 25% down that has actual positive cash flow of around $500 per month and that adds all the additional fees that come including a repair budget. My point is maybe your two locations are not the right places? There is always a growing market somewhere. The key is to identify it.

The area you ended buying 4 units for $250 I'm assuming it's a multifamily. Do you have someone managing it for you? How are the tenants in that area?

0 Votes

Indianapolis, Indiana

@Jaron Walling I guess you are right that Carmel will not cashflow that well but do you think Carmel appreciation will be much higher than other parts of Indianapolis? Or appreciation will be similar?

1 Vote

Indianapolis, Indiana

Quote from @Haresh Patel:

@Sean Keller this is specific to North Texas. We have clayey soil here, which contracts when you don't water it and foundation moves.

Thanks @Haresh Patelsh for the clarification! I wasn't aware that in that area it is such a big issue.

I guess in such a case you want an automated system as you mentioned so the tenant can't control it and it will protect the property on it's own.

1 Vote

Denton, Texas

All Forum Posts by: Sean K.

Sean K. has started 1 posts and replied 15 times.

Post: Massive losses, no deduction. Can a CPA please say it ain't so?

Post: Where should I invest Indianapolis IN, or Carmel IN?

Post: Where should I invest Indianapolis IN, or Carmel IN?

Post: Where should I invest Indianapolis IN, or Carmel IN?

Post: Where should I invest Indianapolis IN, or Carmel IN?

Post: Where should I invest Indianapolis IN, or Carmel IN?

Post: Where should I invest Indianapolis IN, or Carmel IN?

Post: Where should I invest Indianapolis IN, or Carmel IN?

Post: Where should I invest Indianapolis IN, or Carmel IN?

Post: renters taking care of the property