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Need help with purchase of rental property and write off for taxes

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l. Want to purchase a rental property and use section 8

2. Does the application process change for the mortgage on rental properties

3. Is it a higher % rate

4, How much can be written off on taxes if you have a rental property

 

I hope someone can give me advice on this . thx

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You obviously haven't done your research if you're asking these questions. You have no business getting into this type of investment without thorough due diligence. I know all the answers to your questions but I'm not about to write a book on an Internet forum. You're not going to get thorough advice on any Internet forum in general.

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Process: has anyone ever told you, that you're an Flower Pot. I also deleted your other post about Brokeback Mountain. If you don't want to help, why even bother logging in here?

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I don't know anything about rental property. Would someone be kind enough to assist with advice to our newcomer?

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l. Want to purchase a rental property and use section 8

Purchasing isn't a big deal. Section 8 is hard and can be expensive, and it is easy to mess up if you plan to be your own landlord.

2. Does the application process change for the mortgage on rental properties

It depends on the lender and your experience. If this is your first, a lender would require a down payment of 20-30%+, go through all the pain of a mortgage app, and still make it count it against your income as if it was a personal loan, giving no credit for the theoretical income.

3. Is it a higher % rate

Yes.

4, How much can be written off on taxes if you have a rental property

The IRS will treat it like a little business. Rent is your income, and all expenses (including taxes, insurance, and interest (not principal or down payments)) count against it. You also get an allowance for depreciation, as if the property is getting used up. If you have a loss after all that AND you manage it yourself (don't hire an outside manager), you can write it off.

 

I hope someone can give me advice on this . thx

 

 

There are exceptions and much longer answers to all of these things which you will need to understand, or you will make expensive mistakes. And the answers above were for regular rentals, but there are a lot of niches, like flipping, rehabs, commercial property, tax notes, etc, etc. and all of them have a lot of "inside knowledge" you can only learn by getting involved, hopefully small and building up. Best advice is to find a local club for investors (they are all over the place) and make friends who will share their deals with you, and go to the library and read every single book about residential real estate investing, and that isn't an exaggeration, read them all and visit forums where people share their deals and advice.

 

Real Estate can be great - it is, over the long term, and without big mistakes, pretty much a guaranteed wealth builder, even with some mistakes as long as you don't make the same mistakes twice. Many, many people have made millions starting small, working at it, and building their investment over decades. No other (legal) investment provides the leverage real estate does in big amounts, long time frames, and with lots of variety to boot. But experience matters, which means there is a learning curve that will cause you to spend more than you plan on at first, and it is chock full of old wisdom that new people think they can ignore (like "you make your profit when you buy" or that you really need a portfolio, and not bank a single property.)

 

If you want to do this great. Be patient and observe, read, and make friends for at least a year before your first deal. Forget any fantasy about making a million in 2 years or any of that bs. This forum is not the ideal place to be either.

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l. Want to purchase a rental property and use section 8

Purchasing isn't a big deal. Section 8 is hard and can be expensive, and it is easy to mess up if you plan to be your own landlord.

2. Does the application process change for the mortgage on rental properties

It depends on the lender and your experience. If this is your first, a lender would require a down payment of 20-30%+, go through all the pain of a mortgage app, and still make it count it against your income as if it was a personal loan, giving no credit for the theoretical income.

3. Is it a higher % rate

Yes.

4, How much can be written off on taxes if you have a rental property

The IRS will treat it like a little business. Rent is your income, and all expenses (including taxes, insurance, and interest (not principal or down payments)) count against it. You also get an allowance for depreciation, as if the property is getting used up. If you have a loss after all that AND you manage it yourself (don't hire an outside manager), you can write it off.

 

I hope someone can give me advice on this . thx

 

 

There are exceptions and much longer answers to all of these things which you will need to understand, or you will make expensive mistakes. And the answers above were for regular rentals, but there are a lot of niches, like flipping, rehabs, commercial property, tax notes, etc, etc. and all of them have a lot of "inside knowledge" you can only learn by getting involved, hopefully small and building up. Best advice is to find a local club for investors (they are all over the place) and make friends who will share their deals with you, and go to the library and read every single book about residential real estate investing, and that isn't an exaggeration, read them all and visit forums where people share their deals and advice.

 

Real Estate can be great - it is, over the long term, and without big mistakes, pretty much a guaranteed wealth builder, even with some mistakes as long as you don't make the same mistakes twice. Many, many people have made millions starting small, working at it, and building their investment over decades. No other (legal) investment provides the leverage real estate does in big amounts, long time frames, and with lots of variety to boot. But experience matters, which means there is a learning curve that will cause you to spend more than you plan on at first, and it is chock full of old wisdom that new people think they can ignore (like "you make your profit when you buy" or that you really need a portfolio, and not bank a single property.)

 

If you want to do this great. Be patient and observe, read, and make friends for at least a year before your first deal. Forget any fantasy about making a million in 2 years or any of that bs. This forum is not the ideal place to be either.

+1 and all investment properties should be in an LLC.

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l. Want to purchase a rental property and use section 8

Purchasing isn't a big deal. Section 8 is hard and can be expensive, and it is easy to mess up if you plan to be your own landlord.

2. Does the application process change for the mortgage on rental properties

It depends on the lender and your experience. If this is your first, a lender would require a down payment of 20-30%+, go through all the pain of a mortgage app, and still make it count it against your income as if it was a personal loan, giving no credit for the theoretical income.

3. Is it a higher % rate

Yes.

4, How much can be written off on taxes if you have a rental property

The IRS will treat it like a little business. Rent is your income, and all expenses (including taxes, insurance, and interest (not principal or down payments)) count against it. You also get an allowance for depreciation, as if the property is getting used up. If you have a loss after all that AND you manage it yourself (don't hire an outside manager), you can write it off.

 

I hope someone can give me advice on this . thx

 

 

There are exceptions and much longer answers to all of these things which you will need to understand, or you will make expensive mistakes. And the answers above were for regular rentals, but there are a lot of niches, like flipping, rehabs, commercial property, tax notes, etc, etc. and all of them have a lot of "inside knowledge" you can only learn by getting involved, hopefully small and building up. Best advice is to find a local club for investors (they are all over the place) and make friends who will share their deals with you, and go to the library and read every single book about residential real estate investing, and that isn't an exaggeration, read them all and visit forums where people share their deals and advice.

 

Real Estate can be great - it is, over the long term, and without big mistakes, pretty much a guaranteed wealth builder, even with some mistakes as long as you don't make the same mistakes twice. Many, many people have made millions starting small, working at it, and building their investment over decades. No other (legal) investment provides the leverage real estate does in big amounts, long time frames, and with lots of variety to boot. But experience matters, which means there is a learning curve that will cause you to spend more than you plan on at first, and it is chock full of old wisdom that new people think they can ignore (like "you make your profit when you buy" or that you really need a portfolio, and not bank a single property.)

 

If you want to do this great. Be patient and observe, read, and make friends for at least a year before your first deal. Forget any fantasy about making a million in 2 years or any of that bs. This forum is not the ideal place to be either.

+1 and all investment properties should be in an LLC.

 

 

+1,000.

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I'd think long and hard about Section 8. It's a lot of work at times and it wasn't that good of a deal for me. I have friends who are landlords and love Section 8, though.

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