All Forum Posts by: Thomas O'Donnell

Your profile mentions that you are house-hacking which makes your return a little bit more complicated than just having a rental property.

You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.

Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return

House-hacking also has considerable tax implications in the event that you want to sell this property.

You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion.

Thanks for the response! I moved out of the property in September and it is running as a rental right now (non-owner occupant)

0 Votes

Columbus, Ohio

Hello all! I'm looking to speak to some CPA's as I will be needing one for the next tax season. I would also love to learn about new strategies or tips for when it comes to real estate taxes. 2024 will be the first year I am filing taxes with a rental and rental income on my duplex. TIA!

1 Vote

Columbus, Ohio

Quote from @Nicholas L.:

I just did something similar with the AmEx cash magnet - 0% for 15 months and 1.5% back. Not sure if the promo APR is still being offered or not.

would I need to have an LLC for this? Or could it be personal?

0 Votes

Quote from @Ali Nichols:

Check out nerdwallet. Recently did something similar with a discover card. No APR for 15 months.

would I need to have an LLC for this? Or could it be personal?

0 Votes

What are some credit cards with 0% interest for a year as long as you make the minimum payments that you guys have used or know of? I am asking this question with the intent to do a live in flip or BRRRR and use the card to fund some of the repairs/upgrades, then do a cash out refinance and pay off the credit card. Appreciate all and any advice! Other strategies are welcome! (Having an issue finding private money)

0 Votes

Quote from @Julio Gonzalez:

@Thomas O'Donnell

Real estate has so many tax benefits and credits available, that I always tell people it's crucial to have a CPA that's extremely knowledgeable in this area. This would be an excellent question for them. I have worked with a number of great CPAs over the years and would be more than happy to provide you with recommendations if you'd like?

I would love some recommendations, thank you!

0 Votes

Columbus, Ohio

In real estate investing there are 3 main things you need to have: Time, Knowledge and Money. I currently have the time and knowledge to invest in/manage rentals, however I'm lacking the money to make any moves. I have found that having the money to get deals done will be my biggest hurdle moving forward. I'm trying to find some private money lenders but I am unsure of the best ways to do so. I know there are many other investors out there in the same boat as me.

I have a W2 job, but I do not make a bunch of money and do not really have the ability to make a significant amount more than I already do even with a job change. I would love to know how some of you find your PMLs and how you structure deals with them. I currently own and manage a duplex, but I would love to add more rentals to my portfolio. Any tips/advice on how to solve my lending/money issues would be greatly appreciated!

0 Votes

Columbus, Ohio

Quote from @Anthony Freeman:

Quote from @Thomas O'Donnell:

I am currently house-hacking a duplex on a 0% down conventional loan that has me as the primary occupant. I closed on this deal September 30th, 2022. I really want to move out and buy a SFH that needs cosmetic upgrades only (carpet, paint, flooring, cabinets/counters), but can be moved into on day 1. My vision is to live in this via a FHA loan or a similar loan product, and spend the year requirement fixing it up. At the end of that year, I’m hoping to do a cash out refinance and then rent it out, using whatever money was created in equity to buy more property.

There are a few issues that are holding me back, although I refuse to be told “You CAN’T do it” and instead want to ask “HOW can I do it”….

1) My current loan on the duplex has me as an owner occupant or primary residence… I would like to move out and rent out my unit but I feel like I wouldn't be able to get away with this…. Is there a way I could move out before the year is up? And use another owner-occupant loan on a SFH?

2) I am really low on funds and currently can't afford a down payment on a SFH by myself right now…. But if I continue to live in the duplex, it will be draining me of any savings due to the high portion I owe towards the mortgage/expenses... I know this sounds stupid ("If you are low on funds, how can you expect to fix up the SFH?".... this is why I'm asking for advice and tips on here... to see HOW I can make it work)

3) If I was able to move out and rent my side, then use a FHA loan to get a SFH and do a live-in BRRRR, what are some ways I could finance the materials and rehab costs? I Don't have the funds to tackle something like this but I don't want that to stop me, since I fear I may never have the funds if I continue to live in the duplex… and I would be learning to do a lot of the work myself (but also contracting some out) I would love any advice or input you guys have for me. I REALLY would like to rent out my side of the duplex ASAP, and use a low downpayment loan product to do a live-in BRRRR with my girlfriend. Looking forward to getting creative and doing whatever it takes. Thanks!!

How did you get approved for 0% down?

This was a loan product being offered by my lender in 2022 that is no longer available for obvious reasons.

1 Vote

Columbus, Ohio

I bought my duplex back in September 2022, but did not get the other side rented out until March 2023. Since this is the first year I will have rental income, what are some things to look for with taxes? Such as tax breaks/write-offs? Also should I get in contact with an investor friendly CPA asap? I have always done taxes myself but since I own a rental property now I know I will need help with taxes. I have been tracking income/expenses through Avail property management software. Would love all and any input about taxes as a real estate investor and what to expect. TIA!

2 Votes

Columbus, Ohio

All Forum Posts by: Thomas O'Donnell

Thomas O'Donnell has started 92 posts and replied 230 times.

Post: Looking for CPA to Work With, First Year With a Rental

Post: Looking for CPA to Work With, First Year With a Rental

Post: Looking for CPA to Work With, First Year With a Rental

Post: 0% Credit Cards for Fix & Flips or Live-In BRRRR

Post: 0% Credit Cards for Fix & Flips or Live-In BRRRR

Post: 0% Credit Cards for Fix & Flips or Live-In BRRRR

Post: First year as a rental property owner-- Tax Questions

Post: Best Ways to Find a Private Money Lender?

Post: How Can I Escape my House-hack and do a Live-in BRRRR?

Post: First year as a rental property owner-- Tax Questions