Bryce Carroll
IRS wants me to pay taxes on a SDIRA distributed property's note
9 February 2024 | 3 replies
Appeal rejected, heading to tax court. 5 figure case.
Isaiah Cuellar
Strategies for deterring cash flow
11 February 2024 | 2 replies
.• Use Redfin’s property value estimator to determine the value of these properties, and calculate the ROI of these properties (hypothetically, assuming the house was paid cash) only including home value and rental price they are listed for (not taxes and insurance) to determine general ROI of properties in the area.• Select the properties most similar to mine, and use the minimum rent of these as my minimum expected rent potential.
Jeremy Porter
Maximizing Returns: Comparing Buying to Flip vs. Buying for Rental Properties
10 February 2024 | 1 reply
Each strategy has its own set of benefits and drawbacks, as well as potential returns and risks.Buying to Flip for Quick ProfitBenefits:Quick Returns: Flipping properties can potentially yield quick profits, especially in a hot real estate market.Minimal Holding Costs: Since the goal is to sell the property quickly, holding costs such as property taxes and maintenance expenses are minimized.Creative Freedom: Flippers have the freedom to renovate and design the property to maximize its resale value.Drawbacks:Market Volatility: Flipping is highly dependent on market conditions, and a downturn in the market can lead to reduced profits or even losses.Capital Intensive: Flipping often requires significant upfront capital for purchasing, renovating, and holding the property until it sells.Income Tax Implications: Profits from flipping are typically taxed as short-term capital gains, which may result in higher tax liabilities.Buying for Rental Income and Long-Term InvestmentAdvantages:Steady Cash Flow: Rental properties can provide a consistent stream of income through monthly rent payments.Appreciation Potential: Over time, rental properties have the potential to appreciate in value, providing long-term wealth accumulation.Tax Benefits: Rental property owners may benefit from tax deductions on mortgage interest, property taxes, and depreciation.Challenges:Tenant Management: Dealing with tenants, maintenance, and property management can be time-consuming and requires effective management skills.Market Risks: Rental income may be affected by market fluctuations and changes in rental demand.Liquidity: Unlike flipping, rental properties may not offer immediate liquidity, as selling a property can take time and incur transaction costs.Comparing Potential Returns and RisksBoth strategies offer the potential for attractive returns, but they come with different levels of risk.
Dan N.
Question about CA Prop 19
11 February 2024 | 1 reply
We decided we'd like to transfer ownership to our children so we can help them avoid the new Proposition 19 law that requires property tax reassessment upon inheritance.
Behzad Sharifi
Why properties more than 300k doesn’t make cash flow?
11 February 2024 | 32 replies
Quotas, bans outrageous taxes.
Kristen Chuy
Newbie trying to navigate off-market purchase from parent
11 February 2024 | 2 replies
I’ve been trying to find more info on if I would qualify for the parent-child tax exclusion through Prop 19.
Mario Morales
landlord insurance premium tax deductible?
9 February 2024 | 5 replies
Yes, Insurance is a tax write-off for a rental property.It is also true, that if expenses are higher than your income(not including depreciation) that it may lower your DTI Ratio.
James Carlson
Colorado's push to increase STR taxes is softening
9 February 2024 | 20 replies
It seems to me like the push to quadruple Colorado STR property taxes is softening quite a bit.
Jarred L.
Confused on what to do (variable interest rate)
11 February 2024 | 3 replies
I got in when interest rates were great but i took variable and unfortunately the rates have gone up and my monthly payments have gone up almost 1400$ from 2 years ago. the plan was to refinance which is why i took variable but i never did as i was not sure what to do. right now the 3 units bring in a total of $3900 but the mortgage payments, insurance and taxes alone add up to about 4.1k.one of the units is a 1 bedroom where the man who has been living there for 28 years is only paying 580$.my main question is what do i do?
John Kim
Question about Purchasing with Existing Tenants and Strong Rental Prices
11 February 2024 | 2 replies
For example garbage/refuse may be included in property taxes in one town but a separate fee in another town.