Tough call in Murrieta

[pizzaman]

Bluefins
I’m sure you are aware of this but that house on Whitaker doesn’t really have 1/3 acre that is usable. A good portion of the lot is on the creek side of the back yard fence. Still its one of the premium lots in the development. If lot size is important you might consider this one. http://www.redfin.com/stingray/do/printable-listing?listing-id=1233233
Although the house is less sq footage the lot is all usable and it has access to the park next door. You probably remember that it was one of the models. Currently its a short sale but I’m sure the bank will have it back soon enough.

HLS
Can you leave some contact info I may be in the market for a mortgage soon.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[Jumby]

“Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.”

Given their situation, both working and making over 150k a year I would agree.

I would like to add that; if your adjusted gross income is under $100,000, you can offset up to $25,000 of your ordinary income from “losses” in real estate (depreciation, operating expenses and interest on the loan). These “losses” are an awesome tax shelter that essentially leaves more money to invest and further build your portfolio.

Yes, depreciation has to be eventually recaptured, but factoring in the time value of money, you will be using this to further increase your return (before it’s recaptured). Also, once finally recaptured you could have put yourself in a lower tax bracket and get taxed much less.

So essentially, I don’t see depreciation as a bonus. I see it has a major wealth building tool when combined with proper leverage and property selection.

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[mydogsarelazy]

Hi Bluefin,

Since you have lived at Harveston, would you reply to the new thread I started “Have you lived at Harveston?”

By the way, what school district(s) do you and your wife work for? I am at MSJC.

JS

[HLS]

Jumby,
Of course it is a benefit, I didn’t say that it wasn’t.

Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.

When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.

Feel free to factor in if you want, I prefer it to be a bonus.

Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.

[HLS]

Jumby,
Of course it is a benefit, I didn’t say that it wasn’t.

Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.

When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.

Feel free to factor in if you want, I prefer it to be a bonus.

Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.

[HLS]

Jumby,
Of course it is a benefit, I didn’t say that it wasn’t.

Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.

When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.

Feel free to factor in if you want, I prefer it to be a bonus.

Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.

[HLS]

Jumby,
Of course it is a benefit, I didn’t say that it wasn’t.

Personally, I want it to be a bonus, and not have to figure it into the equation to stretch to see if the investment makes sense.

When you’ve been around awhile, there is also such thing as too much depreciation, which gets carried forward for a very, very long time before it may become useful.

Feel free to factor in if you want, I prefer it to be a bonus.

Pizza, you can email me at [email protected] and I will send you my contact info. Please post if you do, as that is an email address that I only check when prompted.

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