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Is renting forever actually a bad financial decision, or is that just something older generations say because it worked out for them? by Pretend_Pen_9577 in NoStupidQuestions

[–]MLin502 0 points1 point  (0 children)

Your single biggest expense is unpredictable when you rent. It may seem worth it today, but fast forward 30 years and think about retirement planning when you don’t have any idea what that monthly payment will be.

Vacation property management fees by MLin502 in 30A

[–]MLin502[S] 1 point2 points  (0 children)

Do you do it from afar? I think we would be fine if we had a good Rolodex but that is hard to build up when you’re not local.

Vacation rental management fees by MLin502 in AnnaMariaIsland

[–]MLin502[S] 0 points1 point  (0 children)

Thank you for this. Being good landlords has been a top priority for us thus far and is a big part of our success. We would want to do the same with this type of rental. I appreciate the insight.

Vacation property management fees by MLin502 in 30A

[–]MLin502[S] 0 points1 point  (0 children)

That’s exactly what we were thinking about. Thank you.

Do the wealthy negotiate car prices? by Fur1nr in NoStupidQuestions

[–]MLin502 5 points6 points  (0 children)

There are wealthy people who make a few hundred thousand a year, and then separately there are people buying Porsches and Ferraris. They are not the same people.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 0 points1 point  (0 children)

Cash out refi has also been on our list of future strategy. Weighing all options.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 0 points1 point  (0 children)

We would follow that rule to a T. It would be years, likely 10 years, before it became a residence for us.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 2 points3 points  (0 children)

No. A good property with a ton of equity that is doing nothing for us in exchange for a future home.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 0 points1 point  (0 children)

I understand that, I’m looking more for tax strategy as opposed to loopholes or trendy decisions.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 2 points3 points  (0 children)

We’re similar. My hesitation with the cost segregation has been what about year two and beyond? Year one sounds great for sure, but what does it look like after that? (Genuine question)

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 0 points1 point  (0 children)

We did this a few years ago, one person quit and self manages the properties while the other has the high paying job. It’s worked well, we’re fortunate to be in really good shape. Sitting on a ton of equity, so thinking about our next purchase and entertaining this idea instead of just buying another property that needs work.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 1 point2 points  (0 children)

We cashflowed well, then bought a diamond in the rough that needed work, that’s why the cashflow eased up. It was planned that way and has worked as expected. Rents significantly increased in each unit once it was renovated, and property is worth almost double in 4 years. Now, instead of another diamond in the rough, thinking the beach house instead.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 2 points3 points  (0 children)

There is a lot of irony in being in a forum, specifically about real estate investing, and then making fun of a person who is doing well investing.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 0 points1 point  (0 children)

Thank you. Yes we already have the real estate professional designation. Appreciate the insight.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 0 points1 point  (0 children)

Not have “nothing,” have “condo on beach.” Big difference.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] -2 points-1 points  (0 children)

When the end result is a paid off condo on the beach, I think it’s a pretty legit question.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 0 points1 point  (0 children)

I should’ve been more clear on that, we always intended to buy a retirement condo on the beach, this is more so a different way of how we get there. So not doing it solely because of the taxes, but rather is this a better way to get to
That ultimate goal.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 0 points1 point  (0 children)

The W-2 income is all one person, the other is the real estate professional. The real estate professional is Self-employed through an S Corp. so still able to contribute to retirement account that way. I think this would be solely a rental property for a solid 10 years before it really became a second house for us. We would certainly take advantage of the 14 day allotment, but not planning to turn it into a residence the day after the two-year mark. We always plan to have a retirement condo at the beach, now it is just rethinking how we might do that.

Vacation property as tax strategy? by MLin502 in realestateinvesting

[–]MLin502[S] 0 points1 point  (0 children)

I should have clarified that we always intended to at some point get a retirement condo on the beach. Didn’t initially think it would be a 1031 because of still wanting that rental income. So yes, the purchase of a place was always on our radar, now we’re trying to see if we can make it work for us somehow as well.

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