The Evolving Role of InvestorsReal estate investors in New Orleans are adjusting their strategies to align with the current market conditions.

I've got until end of 2026 of a fixed rate period on a 5+ unit mortgage, then it adjusts for another 7 year period.   

The down payment is based off the total adjusted acquisition cost – the purchase price plus the cost of renovations.

Existing-home sales have jumped a whopping 9.5% to a seasonally adjusted annual rate of 4.38 million units.

Most important of all: A deal that provides a high risk adjusted return with a well thought out plan for acquisition, management, and disposition. 

There are some key limitations that are important:Passive losses can only offset passive income.Up to $25,000 in passive rental losses may be deducted against non-passive income if the investor actively participates and their modified adjusted gross income is below $100,000.Unused passive losses are carried forward to future tax years.Here’s an IRS article that further discusses the rules: https://www.irs.gov/publications/p9251031 ExchangesThis strategy allows investors to defer capital gains tax when they sell a property if they invest the sale proceeds into a “like-kind” property.

The past few years have shown us that relying on historical data without adjusting for current and projected trends can lead to significant shortfalls in underwriting.

Our strategy has evolved as markets and conditions have changed as well as our own place in life and we constantly check ourselves and make adjustments.

If you do calculate make sure you add a adjustment after you file the tax return if needed.Can you do budgets, forecast? 

Are you manually sending payments to the cleaner at each turn?