Part of those cuts included the short-term rental tax loophole, a strategy real estate investors can use to help mitigate their rental income tax by offsetting earned income with real estate losses, and could be renewed or extended.  

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

We plan to spend the next 6-12 months continuing to earn and save, as well as nail down a final market we want to househack in.

It’s like I have a bunch of clones out earning money for me.

Then there’s this glorious tax season where you realize how many things you get to deduct that others can’t, while sheltering your income with depreciation, and earning tax free income with appreciation.

Larger brokerages sometimes are in need of administrative work, which could earn you a steady income while also getting exposure to the field. 

By easing into real estate with a well-thought-out plan and measurable goals, you can demonstrate the feasibility of your vision and work toward earning his support for future investments.This post does not create a CPA-Client relationship.

My custodian does not have a money market or similar sweep account to keep idle cash earning.

A typical BRRRR in DC creates $200k in equity.

The 1031 is only into like-kind investment real estate and typically is only 1-3 properties and therefore only 1- 3 markets.