What kind of tax implication will one be looking at with such profit and does the profit includes paying someone to manage the property? Just wondering.
The profit is considered income which you would than have to pay tax on, though any expenses related to the house could be written off as a business expense now to reduce that on paper income.
It depends largely on what you’re doing with it, but there’s no way you can be as fluent and up to date in finance. If its just a matter of sticking your savings chunk somewhere, any finance major can handle it, but to get the most out of your money he/she has to be researching market conditions daily or hourly, not quarterly.
I have a BS in finance and am in the process of doing an MBA and I still use a financial advisor for help.
Everyone should be well educated on where their money is and WHY, not just giving it to someone and ignoring it til retirement. So you’re point is valid, but I still think everyone can benefit from the pros. (The pros that aren’t trying to screw you that is - there are lootttssss of those).
We should all thank Anthony for proving a point several times in this thread: do not take anyones advice if they don’t know what they’re talking about and never take anyones advice if you don’t fully comprehend it yourself.
That’s why I don’t feel so bad for letting the professionals deal with that. I wish I had the time to handle it myself but I don’t have the time or skills. I think it’s a bad decision for me to take control of something that I am not fully invested in.
420 bucks per window, i hope they are some big windows LOL construction aint my thing but i got skills and shit i woulda came to your house with tools myself and done it for 300 something per window and been a happy mofo !
i think someone who can continue living the lifestyle they had with income for 6 months…without income and rely soley on the money they have saved… than i think that was called wealthy somewhere…
:rofl
there is things we all dont want, and things we rather not tolerate like being woken up in the middle of the night, but you got to suck it up for a few years, do the work to reap the rewards of a peaceful nights sleep and get that pea from out the underside of your mattress
1 talk isnt cheap …its free and everyone and anyone will give advice…but take a step back before you take that advice and ask yourself …if that person is giving the advice from a place where you want to be financially and whatever… which is exactly why i guess you shouldnt take my advice LOL !
As neo stated above, rental income is just that… INCOME. But remember, the savvy investor buys alot of tools and supplies to maintain the dwelling. Every hammer, socket, welder, trailer etc can be a write off. Consult your CPA to keep it legal of course. What isnt taxed right now is the fact someone else is filling a savings account for you. Every home you buy for say 125k is just another account someone will fill up in 20-30 years with that 125k, and if history repeats itself, each home/account may be worth $250k. So, if at age 25 you have 4 homes, which you conceiveably have purchased with less than 50k your own money, then by the time you are 55 you should have 1 million. Thats not counting any monthly income… as I am assuming you will maintain these places and spend the income on all kinds of write offs.
I think this is being conservative…but I also saw the benifits of the recent home price increases and decreases. I bought a home at 6 hamilton st in cohoes for 76k in 2004. Sold it in 2007 for 160k. I had invested 20k. Its a matter of buying right, updating, getting higher rents and reselling. If I was an asshole landlord i would be far better off, but I am generous and often dont charge top rent. Thats a personal fault and shouldnt be mimicked. However when I sell, I jack rents just prior. If anyone out there has a credit score above 650-700 and wants an income property for very little down, step up to the plate now, this week.
To own income property means late night calls, it means alot of bullshit with ignorant people. And something many of the younger generation cant do… kiss the right ass at the right time and work hard.
Its not about coolness, you gave several pieces of very strange opinions as gospel fact. Its that kind of conversations that lead your peers to make poor decisions if they are nieve enough to listen. I haven’t given any advice for that reason, and Jammer has carefully worded his to not mislead people either. Just my $.02. People are most likely to take financial advice from friends and family, regardless of their qualifications. - Money Magazine