General Discussion > Essentially Flyertalk
The Real Estate Investing Thread
yoga-like_abana:
somewhat off topic but mhk is unbelievable with the amount of crap holes that it has as rentals. I know its to be expected in a college town but the amount of property owners doing nothing to a place for 20+ years is unreal. some of them are starting to get dumped onto the market due to lack of students and an increase in nicer and newer places to live. same shitholes are still being listed and sold at unreal amounts with unreal amounts of work to be done to them. keep thinking a mhk real estate bubble will burst at some point but it has yet to happen
Justwin:
--- Quote from: KITNfury on December 25, 2020, 06:54:35 AM ---
--- Quote from: Justwin on December 24, 2020, 10:17:32 PM ---I appreciate all of your thoughts on real estate as they make me think about it as a driver of wealth.
One thing I think you should point out is that you can't keep taking losses forever on a rental property. I think the rule is something like 2 out of the 5 previous years, you have to make money on it or you are not allowed to claim a loss. You are only allowed to claim it as zero income without offsetting other income if you aren't making making money the required number of years.
--- End quote ---
I've never heard that specifically, but I'm not a tax professional. I'm guessing you're speaking about true losses where my note on taxes is talking about depreciating the property to offset positive income. Only buy priory that positively cashflow.
--- End quote ---
The main thing is that you have to be able to convince the IRS that you have a profit motive. You may or may not be able to do this if your rental has a loss every year. If you can show a profit for 3 out of the previous 5 years, you are presumed to have a profit motive.
Also, there are limitations on taking rental losses since it is considered passive income. You need to make sure that you meet the definitions to not consider it passive or have a low enough income in order to have rental losses offset W2 income.
Fedor:
--- Quote from: ChiComCat on December 29, 2020, 01:56:06 PM ---
--- Quote from: Fedor on December 29, 2020, 01:53:33 PM ---A good rule of thumb to start with is monthly rent should be 1% of the all in property cost. i.e. if you bought a place for $85k and renovation cost you $15k, a total of $100k, you would want to rent the place for $1k a month.
Afford Anything is a good podcast for rental info, along with the aforementioned Bigger Pockets. AA covers lifestyle stuff also so it is a little easier to stay plugged in long term.
--- End quote ---
1% is really hard to come by.
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It can be. The pundits tell you to find a way to add value; add a bedroom or fix a distressed property. It is a lot easier if you don't have to pay a contractor and can do the work yourself.
Institutional Control:
Any of you big shots get so much property that you need software to help manage it, let me know and I can help you out.
Sent from my iPhone using Tapatalk
DQ12:
my dream is to be an MHK slumlord
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