All Forum Posts by: Wendell Hall

I’m wondering how the new tax law has affected buy and hold investors who phase out at the $150,000 W-2 max income for deductions. My wife and I own four properties in Washington, DC proper, and rehabbed one last year significantly before renting it out.

We were underwhelmed when learning we phase out of any tax deductions because we both have W-2 income that combines for $150,000+.

Am I missing something? So every improvement or repair we make in the future has no tax benefits? Am I thinking about this incorrectly?

We are not “real estate professionals” (we have W2 jobs) but without the tax benefit, I’ll certainly be re-thinking my strategy moving forward.

Any advice greatly appreciated.

And Karelyn, you’re certainly scanning Hillcrest Heights in MD, vs Hillcrest, which is in DC. Good luck! 

Thanks for you post! I’m about to be in a similar situation but instead of a separate apartment I’m planning on just a rentable living space instead (Petworth). My ceilings are currently at 7 but will consider the dig-out. I’ll PM you and a few folks who provided comments. Good luck to you!

Welcome. I can help you out with PM recommendations and I know the area well. One thing of note—the “Trinidad area” is a decent size and everything about the area’s real estate differs—often based on how close you are to the H street corridor vs deeper into the neighborhood. Send me a personal message and I’ll be happy to answer the PM question.

I agree with all that it will be difficult to find a multi family for under 300k, but I would recommend you do some additional research. It amazes me that folks as far away as Westminster comment on DC neighborhoods, and even seasoned investors provide inaccurate info. The Trinidad neighborhood in NE may be over-priced and gentrifying but in no way is it a safer or higher-class neighborhood than Hillcrest, mentioned in @russellBrazil’s note. Any comment linking Congress Heights in the same category as Hillcrest shows a lack of appreciation or knowledge of non-rapidly gentrifying DC neighborhoods (or maybe just an honest mistake).

Depending on where in 20020, there are houses that hit that mark and beyond. Houses I know in the zip have gone for $100,000 to $150,000 over this price. That said, that's fully rehabbed and within 1-2 specific neighborhoods. Can't just look at the zip in the city...

To answer your question, the overall market is solid but every neighborhood here doesn't experience the same "hotness". 

Happy to help--20020 zip code is pretty big, and encompasses different types of neighborhoods. If you send the address, or at least the street, I can give you a sense of the area. 

Mary Joe , there are many, many more neighborhoods to buy than Gtown and DuPont. Safe is relative but most neighborhoods in the city, except a few in each city quadrant, are pretty safe--despite what many say or believe (most don't live in or know areas outside NW or trendy NE).

As for condo investments around metro stations for long term, anywhere near Cap Hill/H street corridor might still be profitable (soon adding the Benning Rd extension of H street).

Potomac Ave metro area near Eastern Market and extending down Penn Ave toward the river has new condos, Navy Yard near the ball park, near Catholic U, Petworth, Stadium Armory.

There are more (east of the river) but these are some areas with current amenities (except SA). Hope this helps and happy to chat here or offline.

@russellBrazil is also very knowledgeable of the area.  

Sounds like he's paying you to shadow him. If you trust him, what's to lose? You're within 30 mins of Baltimore/Baltimore County, where you can find cash properties for under $40,000--way under. Scour the sites and find a few. Find an area where you wouldn't mind being a buy/hold owner. Learn. Flip the first one. Get the cash, and repeat the process if you made enough cash to buy it for cash--just hold onto it. But know the BMore laws on renting. Get started (ish) again.