Real estate addiction

[sdcellar]

(oh, and don’t you have to pay taxes on those profits too? I guess I just don’t know to much about all this land baron stuff. Mostly, I guess, because I’ve never seriously considered it. and the reason I was asking in the first place)

[sdcellar]

oh yeah, something else– can you get 5% interest rates on investment properties? That’s the number I used too, but don’t know if it’s realistic.

Sheldon, are you out there?

[sdcellar]

oh yeah, something else– can you get 5% interest rates on investment properties? That’s the number I used too, but don’t know if it’s realistic.

Sheldon, are you out there?

[sdcellar]

oh yeah, something else– can you get 5% interest rates on investment properties? That’s the number I used too, but don’t know if it’s realistic.

Sheldon, are you out there?

[sdcellar]

oh yeah, something else– can you get 5% interest rates on investment properties? That’s the number I used too, but don’t know if it’s realistic.

Sheldon, are you out there?

[sdcellar]

oh yeah, something else– can you get 5% interest rates on investment properties? That’s the number I used too, but don’t know if it’s realistic.

Sheldon, are you out there?

[an]

sdcellar, you’re right about depreciation and expenses. Those are the write-offs I was referring to. Here’s a rough number, but since you can only depreciate the house and not the land, I’d assume I can probably depreciate only about $150k. Divide that over 27.5 years and you’re looking at $5455/year in depreciation. Here’s a quick list of what you can deduct:

* Advertising
* Cleaning and maintenance
* Commissions
* Depreciation
* Homeowner association dues and condo fees
* Insurance premiums
* Interest expense
* Local property taxes
* Management fees
* Pest control
* Professional fees
* Rental of equipment
* Rents you paid to others
* Repairs
* Supplies
* Trash removal fees
* Travel expenses
* Utilities
* Yard maintenance

So, the depreciation alone will more than cover for the 5% you would use as “overhead”.

We are also not accounting for inflation at all either. If the next 10 years is like the last 10 years, i.e. inflation at average of 2.57%/year, you can expect rent to increase about 50% in ~15 years.

I haven’t seriously run all the numbers yet, since there’s nothing out there that’s coming close to the numbers I want, but I’m thinking about combining SD R’s idea w/ my idea. Which means, I don’t have to worry about my tenant leaving unless they die.

Yes, you have to pay tax on the net income you made. But that’s a good thing if you made a profit. I don’t know what it is today, but I think you can get 5% a few months back. Just did a quick search on aimloan.com to get a sense of where rates are today, if you don’t want to pay any point, it’s at 5.25%, but you can get 4.5% w/ 3.11 points.

Also, my goal for these investment property is to be my retirement income and not so much as income in my working years. Although if I make a profit right off the bat, that would be great. I figure, if I get 5 property, yielding $2k-3k/month in rent 30 years from now, my monthly income would be $10k-15k, since I would have all the properties paid off. That should be more than enough to retire on, since my house will be paid off as well.

[an]

sdcellar, you’re right about depreciation and expenses. Those are the write-offs I was referring to. Here’s a rough number, but since you can only depreciate the house and not the land, I’d assume I can probably depreciate only about $150k. Divide that over 27.5 years and you’re looking at $5455/year in depreciation. Here’s a quick list of what you can deduct:

* Advertising
* Cleaning and maintenance
* Commissions
* Depreciation
* Homeowner association dues and condo fees
* Insurance premiums
* Interest expense
* Local property taxes
* Management fees
* Pest control
* Professional fees
* Rental of equipment
* Rents you paid to others
* Repairs
* Supplies
* Trash removal fees
* Travel expenses
* Utilities
* Yard maintenance

So, the depreciation alone will more than cover for the 5% you would use as “overhead”.

We are also not accounting for inflation at all either. If the next 10 years is like the last 10 years, i.e. inflation at average of 2.57%/year, you can expect rent to increase about 50% in ~15 years.

I haven’t seriously run all the numbers yet, since there’s nothing out there that’s coming close to the numbers I want, but I’m thinking about combining SD R’s idea w/ my idea. Which means, I don’t have to worry about my tenant leaving unless they die.

Yes, you have to pay tax on the net income you made. But that’s a good thing if you made a profit. I don’t know what it is today, but I think you can get 5% a few months back. Just did a quick search on aimloan.com to get a sense of where rates are today, if you don’t want to pay any point, it’s at 5.25%, but you can get 4.5% w/ 3.11 points.

Also, my goal for these investment property is to be my retirement income and not so much as income in my working years. Although if I make a profit right off the bat, that would be great. I figure, if I get 5 property, yielding $2k-3k/month in rent 30 years from now, my monthly income would be $10k-15k, since I would have all the properties paid off. That should be more than enough to retire on, since my house will be paid off as well.

[an]

sdcellar, you’re right about depreciation and expenses. Those are the write-offs I was referring to. Here’s a rough number, but since you can only depreciate the house and not the land, I’d assume I can probably depreciate only about $150k. Divide that over 27.5 years and you’re looking at $5455/year in depreciation. Here’s a quick list of what you can deduct:

* Advertising
* Cleaning and maintenance
* Commissions
* Depreciation
* Homeowner association dues and condo fees
* Insurance premiums
* Interest expense
* Local property taxes
* Management fees
* Pest control
* Professional fees
* Rental of equipment
* Rents you paid to others
* Repairs
* Supplies
* Trash removal fees
* Travel expenses
* Utilities
* Yard maintenance

So, the depreciation alone will more than cover for the 5% you would use as “overhead”.

We are also not accounting for inflation at all either. If the next 10 years is like the last 10 years, i.e. inflation at average of 2.57%/year, you can expect rent to increase about 50% in ~15 years.

I haven’t seriously run all the numbers yet, since there’s nothing out there that’s coming close to the numbers I want, but I’m thinking about combining SD R’s idea w/ my idea. Which means, I don’t have to worry about my tenant leaving unless they die.

Yes, you have to pay tax on the net income you made. But that’s a good thing if you made a profit. I don’t know what it is today, but I think you can get 5% a few months back. Just did a quick search on aimloan.com to get a sense of where rates are today, if you don’t want to pay any point, it’s at 5.25%, but you can get 4.5% w/ 3.11 points.

Also, my goal for these investment property is to be my retirement income and not so much as income in my working years. Although if I make a profit right off the bat, that would be great. I figure, if I get 5 property, yielding $2k-3k/month in rent 30 years from now, my monthly income would be $10k-15k, since I would have all the properties paid off. That should be more than enough to retire on, since my house will be paid off as well.

[an]

sdcellar, you’re right about depreciation and expenses. Those are the write-offs I was referring to. Here’s a rough number, but since you can only depreciate the house and not the land, I’d assume I can probably depreciate only about $150k. Divide that over 27.5 years and you’re looking at $5455/year in depreciation. Here’s a quick list of what you can deduct:

* Advertising
* Cleaning and maintenance
* Commissions
* Depreciation
* Homeowner association dues and condo fees
* Insurance premiums
* Interest expense
* Local property taxes
* Management fees
* Pest control
* Professional fees
* Rental of equipment
* Rents you paid to others
* Repairs
* Supplies
* Trash removal fees
* Travel expenses
* Utilities
* Yard maintenance

So, the depreciation alone will more than cover for the 5% you would use as “overhead”.

We are also not accounting for inflation at all either. If the next 10 years is like the last 10 years, i.e. inflation at average of 2.57%/year, you can expect rent to increase about 50% in ~15 years.

I haven’t seriously run all the numbers yet, since there’s nothing out there that’s coming close to the numbers I want, but I’m thinking about combining SD R’s idea w/ my idea. Which means, I don’t have to worry about my tenant leaving unless they die.

Yes, you have to pay tax on the net income you made. But that’s a good thing if you made a profit. I don’t know what it is today, but I think you can get 5% a few months back. Just did a quick search on aimloan.com to get a sense of where rates are today, if you don’t want to pay any point, it’s at 5.25%, but you can get 4.5% w/ 3.11 points.

Also, my goal for these investment property is to be my retirement income and not so much as income in my working years. Although if I make a profit right off the bat, that would be great. I figure, if I get 5 property, yielding $2k-3k/month in rent 30 years from now, my monthly income would be $10k-15k, since I would have all the properties paid off. That should be more than enough to retire on, since my house will be paid off as well.

[an]

sdcellar, you’re right about depreciation and expenses. Those are the write-offs I was referring to. Here’s a rough number, but since you can only depreciate the house and not the land, I’d assume I can probably depreciate only about $150k. Divide that over 27.5 years and you’re looking at $5455/year in depreciation. Here’s a quick list of what you can deduct:

* Advertising
* Cleaning and maintenance
* Commissions
* Depreciation
* Homeowner association dues and condo fees
* Insurance premiums
* Interest expense
* Local property taxes
* Management fees
* Pest control
* Professional fees
* Rental of equipment
* Rents you paid to others
* Repairs
* Supplies
* Trash removal fees
* Travel expenses
* Utilities
* Yard maintenance

So, the depreciation alone will more than cover for the 5% you would use as “overhead”.

We are also not accounting for inflation at all either. If the next 10 years is like the last 10 years, i.e. inflation at average of 2.57%/year, you can expect rent to increase about 50% in ~15 years.

I haven’t seriously run all the numbers yet, since there’s nothing out there that’s coming close to the numbers I want, but I’m thinking about combining SD R’s idea w/ my idea. Which means, I don’t have to worry about my tenant leaving unless they die.

Yes, you have to pay tax on the net income you made. But that’s a good thing if you made a profit. I don’t know what it is today, but I think you can get 5% a few months back. Just did a quick search on aimloan.com to get a sense of where rates are today, if you don’t want to pay any point, it’s at 5.25%, but you can get 4.5% w/ 3.11 points.

Also, my goal for these investment property is to be my retirement income and not so much as income in my working years. Although if I make a profit right off the bat, that would be great. I figure, if I get 5 property, yielding $2k-3k/month in rent 30 years from now, my monthly income would be $10k-15k, since I would have all the properties paid off. That should be more than enough to retire on, since my house will be paid off as well.

[sdcellar]

Oh, I figured all those kinds of items are “deductible”, but must also offset by the income, so if the profit exceeds expenses, it’s a wash, right?

This basically leaves depreciation as the only advantaged deduction as it’s not really money out of pocket (unless you are operating at a loss every year).

That said, I get too that if it at least pays for itself today, it’s pretty much only going to get better from there. The challenge, of course, is finding properties that work, but in time, I’m sure there will be. Well, that and coming up with all those down payments.

On the interest rate, I’m talking about loans for investment properties vs. primary residence. When you say 5%, that seems to be the going rate for primary today (maybe 4.8ish). Are you saying you can get really attractive rates for the former as well?

[sdcellar]

Oh, I figured all those kinds of items are “deductible”, but must also offset by the income, so if the profit exceeds expenses, it’s a wash, right?

This basically leaves depreciation as the only advantaged deduction as it’s not really money out of pocket (unless you are operating at a loss every year).

That said, I get too that if it at least pays for itself today, it’s pretty much only going to get better from there. The challenge, of course, is finding properties that work, but in time, I’m sure there will be. Well, that and coming up with all those down payments.

On the interest rate, I’m talking about loans for investment properties vs. primary residence. When you say 5%, that seems to be the going rate for primary today (maybe 4.8ish). Are you saying you can get really attractive rates for the former as well?

[sdcellar]

Oh, I figured all those kinds of items are “deductible”, but must also offset by the income, so if the profit exceeds expenses, it’s a wash, right?

This basically leaves depreciation as the only advantaged deduction as it’s not really money out of pocket (unless you are operating at a loss every year).

That said, I get too that if it at least pays for itself today, it’s pretty much only going to get better from there. The challenge, of course, is finding properties that work, but in time, I’m sure there will be. Well, that and coming up with all those down payments.

On the interest rate, I’m talking about loans for investment properties vs. primary residence. When you say 5%, that seems to be the going rate for primary today (maybe 4.8ish). Are you saying you can get really attractive rates for the former as well?

[sdcellar]

Oh, I figured all those kinds of items are “deductible”, but must also offset by the income, so if the profit exceeds expenses, it’s a wash, right?

This basically leaves depreciation as the only advantaged deduction as it’s not really money out of pocket (unless you are operating at a loss every year).

That said, I get too that if it at least pays for itself today, it’s pretty much only going to get better from there. The challenge, of course, is finding properties that work, but in time, I’m sure there will be. Well, that and coming up with all those down payments.

On the interest rate, I’m talking about loans for investment properties vs. primary residence. When you say 5%, that seems to be the going rate for primary today (maybe 4.8ish). Are you saying you can get really attractive rates for the former as well?

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