It’s gaining more attention from market watchers and is considered more comprehensive data.

Hi,As a first time home buyer, I want to learn and experience real estate so I would like to buy a duplex to gain experience as a landlord and get familiar with the processes.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $310,000

Cash invested: $15,000

Sale price: $425,000

Contributors:
Peter Vekselman

Partner Driv...

I am asking about a real estate portfolio specifically, not your overall portfolio that may consists of stocks and/or bonds.Do you build your RE portfolio based on a predetermined percentage of each asset class (ex. 50% residential properties 50% passive funds)?

Even with a exclusion of gain under Section 121 (MFJ: $500k), they are looking at over $100k in taxes from a sale.

We have rental properties in various LLC's and until recently were under the impression that the deductions we could claim against my W2 income was limited to her percentage interest in the LLC's (i.e. since we are 50/50 members in the LLC that only 50% (her share) of passive losses can be deducted against my ordinary income.  

As long as you are spending money, and not gaining money, you are just adding to the number you must recover before you can make a profit.Any cost of yours (cash out of pocket) is gone when you spend it. 

So, your basis for capital gains is the value of that property a few years ago.

This will drive how much you can borrow.Consider More Modest Options FirstWith $200k in investments to deploy, look at starting with 1-2 short-term rental properties first to gain experience before scaling up.Explore markets closer to your mom's current location that may have lower costs but still tourism appeal.This allows you to validate the model and your ability to operate short-term rentals successfully before risking more capital.The short-term rental concept could potentially work, but I would recommend starting with a smaller, very well-researched first step to validate the model before going all-in on a larger endeavor.

Some questions I have: -What is the capital gains tax situation on something like this?