All Forum Posts by: Wilson Churchill

It can be a viable strategy, but only if you have the cash flow to carry the property and the property is virtually guaranteed to appreciate. Without a compelling reason to buy, I would be concerned that rising interest rates would curb any anticipated appreciation.

https://www.google.com/search?q=fed+plans+to+raise+interest+rates&ie=utf-8&oe=utf-8&client=firefox-b-1

 Yeah, it's been a pain! I just assume it's a streak of luck. There have been times where I have gone months without any repairs. It's like the furnaces are ganging up on me this year. I've also had a few plumbing issues in the last couple of months, so it's been crazy. I'm in the middle of installing a sump pump in a basement that has been getting wet. It's just non-stop at the moment.

I do all of the repairs myself, so I promise that the blowers were bad. They were older furnaces. Brand names? Some were ICP. I honestly don't recall all of them. One had a cracked heat exchanger, and another was old and rusted, so I replaced those with new Goodman furnaces.

One thing I've noticed about water heaters is that the electric ignition used on the lowe's and HD models seem to fail often. I'm only buying from plumbing suppliers from now on.

Has anyone else had a high number of furnace issues this year? I've replaced two furnaces and five blowers, so far.

 House flipping is considered by the IRS to be a business. The IRS views the properties as "inventory". I assume you mean that rental "investment" real estate being sold would not be subject to UBIT. Please elaborate on the other factors, if you don't mind.

Edit: My last post was removed? Sorry if I accidentally deleted it..

 I suppose, in your case, it will boil down to whether you would rather have a government check at a certain age, or be able to invest that money as you earn it and rely on your own investment decisions. I would rather receive a lump-sum payment of all of the SS taxes I have paid to date, without interest, today and use it to buy a single home than to receive a future annuity from the government (the value of which is not guaranteed at this point, especially for people in my generation and younger). What is the present value of the future Social Security payments? What return am I receiving on any Social Security taxes paid? Is the return even as high as inflation? So not only are my future payments likely to be reduced either in terms of the amount or the age at which I will receive them, but the return on investment is likely lower than inflation, constituting a negative return on investment. On the other hand, I could buy one or more homes now, and leverage them to receive a significantly higher rate of return. 

To summarize:

1. You aren't paying Social Security and Medicare tax

2. The returns on the money  you save will likely be higher than the present value of the Social Security taxes paid, and can be parlayed into other investments.

3. If for some reason you die early, your family may get nothing from the Social Security payments you've made (other than survivor benefits for spouses, if you are old enough).

Personally, I would rather own and manage property or otherwise earn money than rely on a Socialist government program. When I die, the fruits of my labors will still benefit future generations of my family.

Another advantage that hasn't been mentioned is the use of retirement accounts. Technically, it is possible to invest in real estate using a SOLO ROTH 401k or similar vehicle, avoiding taxes almost entirely, except for UBIT taxes related to leverage.

i like the title of the thread. I would think that real estate is actually the oldest, most traditional investment strategy, predating shares by thousands of years.

IMO, success in rental real estate will depend on two major factors:

1. Buy "right", meaning get a good deal. Know why you see value in the property. Ideally, buy below the real value.

2. Management. This is what makes or breaks a landlord, especially if you utilize leverage. Vacancies are the enemy. Be picky about who you rent to. If you are worried about repairs, find a reliable handyman (easier said than done).

 I will look into Adobe. I was wondering if cloud storage would become an issue going completely paperless. I know that the Excel files would get huge if I attach receipts to them directly. 

 QuickBooks online and self employed both have mobile apps. But the reviews don't seem great. People are saying that the mileage tracker isn't working. Plus I'd rather not pay monthly. I purchased a copy of the desktop software and also Quicken, and both have obsolescence programmed in. I can't import bank statements even manually and Quicken disabled it's mobile app. I refuse to throw money at either again. 

It's not that I can't do it (being a tax accountant lol), just trying to find a convenient, paperless system.

I know this has been discussed a lot, but with the advent of receipt scanning and mobile apps, I would like to find convenient ways to go paperless. Quickbooks mobile has a receipt scanning and automatic data entry feature, but the reviews are mixed. I have been using excel to track everything. I see at least one app that might compare to QB Online, called Hurdlr. 

Anyways, maybe I can just keep using excel, but put it on a "cloud" drive like Google Drive or OneDrive? I am looking to accomplish three main things without paying for software constantly:

1. Mobile bookkeeping on my phone

2. Electronic storage of receipts

3. Automatic mileage

So far I'm thinking just Excel, but on a shared drive. Maybe Onenote for the receipts, and some free app for mileage. Apparently it's possible to insert .pdf images into Excel, so I could insert the receipt images next to each line item.

Any other recommendations? I'm trying to make the bookkeeping more painless because I just went through about 700 receipts over the last few days.

 I learned a lot by reading his "no down payment" three book set. The credit section was especially helpful. His "credit pursuit" strategy seems unique, at least in that I haven't read about it anywhere else. Not all of the techniques are practical, but some are good, and it lists a number of them.