Do you pay taxes once a year or every quarter on the passive income? 

Hey all,Just wanted to give a frame of reference for those who are thinking about being a real estate agent, whether it is to do "retail" sales or investing here are some of the cost associated to being an agent:I am located in Tulsa, OK each region/brokerage/style is going to be differentP.S. other realtors feel free to chime inGreater Tulsa Association of Realtors (access to MLS): 663/year (paid quarterly)National Association of Realtor fees: 685/year (paid in full upfront per year)Monthly Desk Fees: 990/year(HUGE range depending on style of broker)Continuing Education/Renewing License: 150/year (Just an estimate on the high side, new license last 1 year, then 3 years after, may want to upgrade to broker's etc.)Bare Bones: 200-250/mo or 2400-3000/yearNot that bad if you ask me, but there are a ton of other cost that you may not of thought about:On the "retail side":Advertising Costs, Marketing Materials, Coaching, Health Insurance - 1000/mo (doesn't include my health insurance)I am pretty conservative in my marketing also: 1250-1500/mo or 15000-18000/yearBREAK EVEN POINT:Here are more costs when you do make money:Taxes - 1099, there are a ton of things you can write off, but you are still responsible to pay the 7.5% that most companies pay off the top*Commission Split - most start at 50/50 some go to 100%, depending on how you start this could be even lower than 50/50*Splits, franchise fees, and commission vary a tonREALTOR BREAK EVEN:Let's just assume that our break even point is 1000/mo, I advertise more than a newbie (I know most of the things I mentioned are tax write-offs, so I wont include that in our calculations)1000x2(commission split of 50/50) = 20002000/.93(franchise fee of 7%) = 21502150/.03(commission off sale) = 71,666 (price point of house needed to be sold)71,666x12 = 859,992You need to sell almost 900,000/yr or 71,666/mo to break even in this industry... 

Clay

This property is in coastal SC and soil tends to be sandy but this property is pure clay.

Receive and market to Quarterly Inherited Lists from USLEADLIST.I have contacted my local county tax office try and obtain the delinquent tax list but have had ZERO success.

Hey BP, So I'm diligently studying videos, podcast, from BP, and currently I'm reading books like "Flip" by Clay Davis, and The Millionaire Real Estate Investor by Gary Kellier.

Thank you, @Clay Owens!

I try to go back and look at these outstanding houses quarterly, but as I said in my article it is more like 3 times a year that it actually gets done.

You could have invested that cash elsewhere for a return, so if you go the all cash route, you need to also then compare the cash on cash return (COC).Ok, now for the meat and potatoes - History will tell you a lot about the future, one of the advantages of RE is that you can much more easily forecast and see what is coming compared to the stick market where a stock can go from $100 a share to $50 a share in one day with no way to see it comings therefore, knowing your investors levels, today, last month, last quarter, last year, two years ago, 3 years ago, etc will help you forecast where your market will likely be in the upcoming quarter to 6 months.

taxes 3600, insurance 2k, water 350, 50 per unit is sewer quarterly ballpark.I do 30% maitenance and vacancy10% mgmt100/mo/unit profit and let the balance tell me my mortgage max, which is max offerComps (not many multis nearby) are 150 ish.