All Forum Posts by: Tony Lin

Great. Thank you everyone!

Hi there. Looking for established multifamily property management companies in the Atlanta metroplex to manage 100+ unit properties. Would like the companies to be well established managing at least 3,000 units in terms of scale. Mainly focusing on class B and A- multifamily. Thanks!

Friend asked a similar question, does this work if the gains comes from a sale of a rental property, instead of a syndication deal? The difference is the syndication profit deal is a passive gain, where the appreciation from SFH rental may not be considered passive. Thoughts?

Michael, thanks so much for this explanation. This is the exact thing I'm looking for to explain in the tax code. 

The next investment is for sure to continue with the good track record of returns, the tax defer is just a bonus. 

Thanks so much.


 

Thanks everyone. So it sounds like capital gains from deal #1 can be offset by depreciation loss from deal #2? 

I'll check with my CPA today. But this article seems to imply it's not so a bit confused. 

https://finance.zacks.com/capi...

Good point about the depreciation recapture rate (25%?) is higher than LTCG. Though will need to check the math on whether the additional investing power returns eventually overcomes the higher tax basis. 

Let's say I made a 100k passive LLC syndication investment #1 a few years back. It sold this year with 10k of total cashflow and 50k of appreciation.

If I invest in a new 100k LLC syndication deal #2 this year and it provides $60k worth of accelerated depreciation. Can this be used to offset the passive gains from deal #1?

I heard that the depreciation losses from deal #2 cannot be used to offset capital gains from deal #1. 

If they are hourly employees (most are), then you should be able to get timecards from the property management company. 

When underwriting multifamily deals, I frequently hear people say "cap rate is xx when adjusted for property tax". Can someone expand on how this works and why it should be adjusted this way? 

In projections, we usually add .1 to .2 to exit cap per year held. Should it be based on the current T12 purchase cap rate? Or the "tax adjusted purchase cap"?

@Jordan Moorhead Thanks! Are there others that you know of?

Sorry I should've been more clear. I'm looking for large apartment management companies who manage 100+ unit multifamily complexes.  

Rhome is a residential property management if I'm reading their website correctly.