Hey Folks!

I always am amazed when someone selling a $600,000 house brings me a listing agreement where they agreed to pay a stranger $30,000 to list their house for sale and they didn't even read the agreement much less spend the $250 to have a lawyer tell them that yes, if they sell it to their cousin during the listing period they still have to pay the $30k.

Less licensees paying into the pot means everyone's costs go up.

For 95-99% of folks, right now nothing is happening.

But we also do occasional drive-byes and annual inspections to see how the tenants are caring for it and hopefully catch anything that is potentially damaging before it gets real bad.Some of our clients prefer to pay for the lawn care and we charge a lawn care fee to the tenants.

That said most folks have price targets and if large complexes are conceding 1 or 2 months on the 1st year lease, itll put downward pressure on your rent to some degree. 

Our thought process is to never pay off loans to maximize tax benefits from income and also take out interest free cash.

Currently all $200K is subject to self employment taxes ($30K tax bill).If taxed as an S-Corp, I could pay myself $50K as a salary, and only the $50K would be subject to self employment taxes ($7.5k tax bill).

However demand is very high, especially for section 8 which also doesn't pay very well because government funding is one of the lowest for Puerto Rico.

If you are living there you can keep the 4% rate.If you are not living there you can rent it out to pay for the property taxes.