All Forum Posts by: Taylor Green

Hi, 

Sorry I'm a bit late on this post. 

I am from Courtenay, but live most of the year down in Arizona. I have always wondered how money was to be made at home by real estate investors besides flipping. Great to read all these posts and see that people are making it work! 

@Tom Stromar You mentioned you were building carriage homes in the back. Have you ever tried converting a basement into a separate quarters? If so, what type of numbers are you looking at?

Thanks

Taylor

Hi,

I am looking to purchase properties in the Bates-Hendricks neighborhood in Indianapolis. I am preferably looking for single family homes, but depending on location would consider a duplex. Please let me know if you have any properties available in that area.

Thanks

Taylor Green

Thanks @Wayne Brooks 

I wasn't quite sure if the numbers were right.

So when people add the principal in to the equation that helps determine what their total return is. 

Just so I understand 100%, the principal add in has no affect on the tax deduction segment?

The tax deduction is pre-tax cash-flow minus depreciation, correct?

Thanks again.

Taylor

Hi,

Just going to try and revive an old thread… I have an ultra-basic tax example that I would like some help with. 

I have a CPA do all my tax work but I have been reading to try and understand a bit more so I can follow what he is doing.

My question is about how I calculate depreciation as simply as possible.

Property Value 100,000

Basis 80,000 Land 20,000 -

I divide the basis by 27.5 each year and that should give me (80,000\27.5) 2,909 that I can deduct off my pre-tax cash flow from the property.

Just using an example, after all expenses and debt payments the property was to produce a pre-tax cash flow of 2000. Would I then deduct 2,909 from 2000 giving me a paper loss of 909?

I have also noticed in some examples that people add their principal from their mortgage payments to the cash flow number and then subtract the deduction number?

Sorry if that was a bit confusing…

Thanks for the help

Taylor

Hi,

I was wondering how and if my wife could qualify as an RE professional for tax purposes? I would love to be able to write-off some of my W-2 income.

She is a stay at home mom with our 1 year old son, and uses her free time to help research properties. 

From what I have read, she needs to spend most of her working time in real estate activities and it has to be over 750hrs/yearly. How do we prove this and what additional steps are needed in doing this? Does research even count (like comping properties) or does she need to be more active (have a real estate license, etc.) She is very willing to be more active in real estate actives in order for us to qualify...

I was hoping somebody could shed some light on this for me?

Thanks

@Lisa Doud @Dawn Brenengen 

Thanks so much for the responses! Looks like I found my answer!

Taylor

Hi,

I am wondering how I could find out what rental rates were for a home or an area in past years? I am interested in learning because I wanted to see how much actual rents dropped in different areas during the market crash a few years back. 

I have looked on websites like rent-o-meter and didn't see an option for this. Is there a website that has this information? Would real estate agents have access to something like this?

Thanks.

Taylor

Hi, I am curious to see what people think the most useful degree would be for a real estate investor. I believe nothing beats real life experience of getting your hands dirty. However, if an investor was going to get a university degree which one would be the most beneficial? Thanks. Taylor

Thanks Jon Klaus and Jean Bolger for that info. Very helpful and good to hear that just because of downturns if you buy right you should still be very solid... Frank R. I'm looking around the $1000 price point as well. That's great that you noticed an uptick in demand during that time. Do you think $1000 or a bit less than $1000 is the most stable price point during a market crash?

@Jon Klaus

Thanks Jon for the response.

That is a good point that I haven't really considered before.

I am trying to get comfortable with owning multiple leveraged properties. Trying to protect myself (like most people) in case of another tough market.

Do you agree with the general opinion that if you buy a solid property, in a solid location, that cash flows at least $100+ a month and keep 6 months rent in reserve for each property you own, your business would survive another crash?

Thanks!