Dear BP community,

I am new here and in the process of buying my first SFH on the San Francisco Peninsula for $2.5-3M with 20% down. My husband and I do not own other RE.

- Are any of you leveraging the equity i...

If you say “I want to sublease your place,” most landlords tune out immediately.The key is to position yourself as a professional housing provider, not a risk.

Qualify as a Real Estate Professional (REP) under the tax code. • This requires significant hours and material participation in real estate activities.• For someone working a full-time W-2 job, this is very difficult to achieve legitimately. 2.

For the average homeowner who seeks this due to a lack of funds it is likely a bad idea because they often make emotional purchases and attempt to sell, move on a whim without understanding that appreciation is usually a long game. 

It connects the two separate properties and provides me a pathway from one to the other by collapsing all three if I have grounds.I mean if we want to get stupid with it turn the WY into a management company and charge the LLC's.The income is non-taxable to WY but the LLC's get a deduction on state and Federal.Just make sure its' arm's length/documented (see Cayland Land and Cattle).Personally I would just do the two in CA and LLC and make sure you don't do anything on their behalf that would allow jurisdiction by Texas.I dunno but I would seek out less expensive in time and money.

At Rent to Retirement, we specialize in fully turnkey rental properties that are newly renovated or new builds, tenant-ready and professionally managed so you can invest confidently and passively from day one and often come with hefty seller concessions to really maximize the deal for our investors.We have opportunities across Texas, Florida, and the Carolinas, all in strong growth markets with solid cash flow and appreciation potential.Our company has earned over 300 five-star reviews from real clients and an A+ rating with the Better Business Bureau, which reflects our commitment to helping investors build long-term wealth through real estate.Feel free to DM me to discuss more.

In my experience hiring a professional costs less than the savings they have provided me.

Talk to professionals, business owners, and investors looking for passive income.- Present your deal clearly. 

Readers are advised to seek professional advice

This can be especially powerful if you qualify for Real Estate Professional Status (REPS), Short-Term Rental (STR) classification, or Active Participation, since those statuses can allow you to offset W-2 or business income with real estate losses.So whether you’re thinking short-term resale or long-term rental, the basement gives you some nice flexibility from both an investment and tax angle.This post does not create a CPA-client relationship.