All Forum Posts by: Jimmy Jones

Residential Rental Property.    (curious how they differ)

Hello All,

I am trying to understand how depreciation of a long term upgrade (Solar) is calculated for tax purposes / understanding the real cost.  My question does the depreciation directly offset net profit?  

  Example:

Solar costs $27,500

Depreciate over 27.5 y

$27,500/27.5y = $1000 per year

Lets say the Net profit assuming all other costs before the solar install is $1000/month and I install solar example above would that be $0 income per month on paper?

Thanks

Jim

@jason hsiao you are right there are challenges in sf planning.  I am on two sides of the fence, start the planning to build now and try to hit the top to sell, or start the planning once things become more slow and get into the build as the market goes back into a slump so that the contractors are in a better price range.  It's a long game vs a short game.  What are your thoughts on that?  I am in general into the buy and hold mind set, but I do feel like having two assets in the same city might be bad only based on earthquake and fire risk.

Thanks Amit, you have some good points. And I will reach out to some brokers, I feel like to build anything nice it's probably around. $400/ft these days.   Why do you feel like a 1031 would be hard?  Due to the prices in the area?   Thx

Thanks,

SJ

 130 Cuvier st

Hello All,

I have an R2 vacant lot in SF. I had considered building on the lot but I only have limited experience in this area and feel selling it and investing that money would be a less risky option. Thoughts:. 1031, how to derive the asking price, should I do the transaction on an LLC, other options?

Thanks