We are being conscious of property tax on a vacant piece of land (our potential liability) as well as the potential capital gains taxes (their potential liability). 

I have been seeing a lot of houses in the area going up for foreclosure. But the whole concept of foreclosed homes is confusing to me. Is this a good way to get into real estate investing? What are the benefits and dr...

That makes your bookkeeping easier, and it can also provide liability protection if you hold title in an LLC.

Investment Info:

Office Space commercial investment investment.

100's of completed projects, JC Beal Construction is nearly 100 years in business, Beal Properties manages well over 2000 doors all throughout ...

The policy was $2200/year ($1.1M Bldg coverage and $1M Business liability coverage in this apartment LLC) and I haven't had a single claim in my past 5 year history.

None of the walls I'm shifting around are structural so no issue there but from a leasable / liability stand point what are your thoughts?

Hey Rebecca, I'm a broker and investor up in Sacramento and manage about 100 investment properties (STR and LTR).Many of my clients are high W2 earners seeking "bonus depreciation" to offset tax liability by investing in STR.

What happens if you lose on it, you now have an additional liability, not just a loss of money.Are you planning on keeping the current property or exchanging it (1031) into something else?

The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

Also, if a few hundred dollars in draw fees will make your deal go sideways, it may not be the best deal for you, especially as you are just getting started.I'm happy to share my experience as an investor and a mortgage broker.