All Forum Posts by: Waylon Black

Same problem here. Anybody figure this out?

I’ve read conflicting answers on depreciation and how or if it can be used against w2 income. I have decided to get started investing in rental houses and I’m trying to understand the tax side before buying anything. My wife and I have $130-140,000 combined w2 income before anything comes out. Say we were to buy 1 or 2 $80-100,000 houses this year and on paper they created a loss. These would be under a property management company. We wouldn’t be actively involved. Would the loss be able to go towards the w2 income? If so wouldn’t it be beneficial to get a cost segregation done to take advantage of the 100% bonus depreciation to get a bigger refund and invest in another property? If we can’t use the lose would there even be a need to do a cost segregation?

Looking into possibly doing my first deal. My aunts new husband has 5 single family homes that he had built. All 5 rent for 500 each with tenants that have been there for years. He’s 71 and has always managed them himself and ready to get out of them. I don’t know all the details for them yet. He’s priced them to me for 200,000. How would I go about financing them?

I am Waylon Black from Pontotoc MS. 36 years old and just getting started in the real estate investing learning. Started listening to podcasts and audiobooks a few months ago. Goal is to create enough income for financial freedom. Hoping to get my first deal this year. Looking at sfh for buy and hold rentals.