All Forum Posts by: Lane Kawaoka

My understanding is that meals with people (partners, advisors, wife, mentor) where the topic of conversation is RE or your business that is deductible at 50%.

The IRS groups us buy and hold investors and sorts and arranges our tax returns on a massive scale. Therefore the name of the game is to not be an outlier for example someone who has total rents of $20K a year but takes $8K in deductions for Meals and Entertainment. I as hoping if we could start a mini poll to see where we each stand amongst our Buy and Hold cohorts.

I made a spread sheet that you can anonymously list your rental income and how much you are claiming in travel/meal expenses. Click to access my spreadsheet below:

https://docs.google.com/spreadsheet/ccc?key=0AogFjCt6Knc1dGtDS09jTUhTM013YjM4bG5uT0YtRWc&usp=sharing

Thanks. It appears that the loophole got closed in 2008. It seems like the only real way to avoid capital gains taxes is to do a 1031.

I would like to take profit and run. But if I have to pay taxes on the depriciated amount I will most likely do a 1031 exchange.

@Anthony, but what if I had taken depreciation during the time before? What if I rented it out for a decade and got to take $80,000 of deductions before living there 2 years?

If I bought a rental in 2009, rented it out a few years (and taken 30k in deductions for depreciation), then moved in and have lived there for the last two years do I have to pay any taxes on any appreciation if I sold now?

Info on 2 year rule: (However it does not mention if your rented it out previously to you living in it)

http://www.realtor.com/home-finance/homebuyer-information/understand-the-two-year-real-estate-resale-tax-rules.aspx?source=web

Has anyone have any luck with Vestus? Is it as turn key as it seems? Do are the ROI as advertized?

In Seattle you would be have a hard time finding anything getting 2%. 1% is more realistic. I understand its a numbers game but there are so many intangibles that make a difference between a rental in Seattle as opposed to one in White Center. You might not be the investor who what's the extra worry/work associated with a higher yielding property.

@No Jo I think your assumptions are spot on. Its a question on what your investment strategy is.

Nope no other ideas to raise you rent level.

But I would say whatever money you save don't use it to pay off your loan. Use it to save for another property.

Cory,

I grew up on Oahu but family on maui too. How much are those HOAs? You should take a look at some turn-key investor sites on the mainland (Atlanta/Memphis) to get an idea of how good your cash flow could be. I live in seattle which is not great but a little better than Hawaii (which I would like to own a few rentals for no logical reason).

1. What would you do next (in terms of acquiring rental properties) and how would you go about getting there?

You are off to a good start the last thing you should have done was buy anything you don't need meaning a home that is greater than 350k. Although I don't know the quality 250k in Maui is a steal. Going forward just get as many Fanny Mae conventional loans with the least down/longest terms.

2. Knowing my goal, should my next step even be thinking about rental properties?

Yes. I think wholesaling in Hawaii is harder because of the limited supply and buyers. IMO. I don't wholesal