All Forum Posts by: Thiag Sivalingam

I will be relocating to Memphis, TN soon. Was wondering if this is a good city to buy rental properties. Looks like there are many other cities within driving distance from Memphis (Little Rock, AR, Birmingham, AL, Nashville, TN, Louisville, KY, Jackson, MI, etc). Are any of these surrounding areas better suited for rental properties?

My goal is to buy and hold properties for the long term.

Thank you

1 Vote

I'm on the fence, and I'd like to get some expert opinions from the community members on a property I'm considering as a long term rental

(Background: I own a few properties in this area)

Market: Boston (mostly an appreciation play)

Price: $1,150,000

Property type: 2-family

Condition: older property, but recently updated (newer roof, hvac system, electrical, exterior and interior paint)

Potential total rent: $8,200

Please provide your thoughts. Thanks in advance!

0 Votes

@Jack Faysash

Thanks for the response! I will consult a tax advisor

1 Vote

Hi Tax experts and experienced investors,

Do I need to own my rental properties under a business to claim the new car depreciation (section 179), or can I have the properties and the car in my name, and still claim the depreciation?

Thank you

2 Votes

@Alex Ballesteros

Great tips above. One other option you could consider is using M1 finance or Interactive brokers (both have lower margin loan rates) to borrow against your taxable account. Margin loans are risky, so I would leave a lot of cushion by not borrowing more than 50% of the maximum possible loan amount.

1 Vote

What are some of the suburbs around Austin that are good for house hacking? Looking to purchase a 2-4 family in an A/B+ neighborhood.

0 Votes

What are some of the suburbs closer to Boston that allow short term rentals. I heard that somerville and Malden allow STR only in primary residences.

1 Vote

Quote from @Bonnie Griffin Kaake:

Quote from @Thiag Sivalingam:

Looking for advice - Does it make sense to do a cost segregation study on a property (and claim accelerated bonus depreciation) I bought this year considering the following? why/why not?

(I understand that I need to consult a CPA to get the answer specific to my situation, but just wanted to get a general idea on what experienced investors suggest)

1) Property cost ~1M. Passive investment for tax purposes

2) Property is a two-family. In the process of doing a large renovation (~$100k)

3) Expecting to generate around $35,000/yr net cash flow

Thank you!

On the low side, you would have about $66,000 in taxes you don't have to pay. Yes, even if you are a passive investor because you can always roll what you can't use in a specific year to the next. Why pay more in taxes than you need to pay? You can always invest that extra cash in your properties or leverage it to buy more. Sure beats letting the Treasury hold it for 27.5 or 39 years.

Thank you. I have sent you a DM

0 Votes

Quote from @Lien Vuong:

Definitely would be more worthwhile if you're already REPS certfied where you can move the gains in the active column but in this instance it would not be.

Thanks, Lien. Could you pls elaborate your response? What is REPS certified

0 Votes

Quote from @Julio Gonzalez:

@Thiag Sivalingam Scott makes a good point above. A cost segregation study can be extremely beneficial but its a case by case basis that depends on a multitude of factors. Most cost segregation study companies will provide a free cost/benefit analysis quote to tell you how much the study would cost and how much you could potentially benefit from the study. For me, it's helpful to see the actual numbers to decide if the cost is worth the benefit.

Thank you, that's a good idea. I will get in touch with a professional and ask for a cost/benefit analysis

2 Votes

All Forum Posts by: Thiag Sivalingam

Thiag Sivalingam has started 9 posts and replied 19 times.

Post: Is Memphis,TN a good place to invest?

Post: Would you invest in this property

Post: Vehicle depreciation section 179

Post: Vehicle depreciation section 179

Post: All my money tied up in investment accounts

Post: House hacking in Austin, TX

Post: Boston Short Term Rental

Post: Cost Segregation study?

Post: Cost Segregation study?

Post: Cost Segregation study?