Rental income investments question?
Hi, I'm planning to buy a condo for renting it out.Here are some numbers for example:
purchase cost: 100 000
down payment: 10 000
nouns: 90 000 for 30 yrs at 6%
mortage: 540
hoa: 300
pmi: 42
property tax : 168
which make total payments : 1 050/month
if i rent it out at 1100,
what would be the taxable amount on this
income 1100*12=13200
expenses 1050*12=12600 ?
or can i deducte everything execpt mortage
(300+42+168)=510 * 12=6120
taxable income=13200-12600 or 13200-6120
(of course i can deduct other stuff) but the put somebody through the mill is on the mortage itself.
2. using those numbers, how depreciation is done. i don't really understand the depreciation .
considering that if i provide the condo at the end won't i be tax more for the difference, if i used depreciation.
thanks sincerely
henri
Answers: Definitely parley to a CPA but also consider doing a 1031 exchange when you do decide to go it. It allows you to buy another property for investment without have to pay income gains taxes at the time of the mart of the original property.
I'm betting you can't rent a $100,000 property for 1,100. The numbers don't work.
Assume you can. At best, you are breaking even. You enjoy no back up for lost rent, repairs, etc.
Your mortgage and HOA should NEVER be more consequently 50% of the rental income.
Talk with a CPA or review the IRS matter for rental income. It's explained there.
What is the benefit of not have a Agent when looking to purchase a house ?
I thought that maybe the seller will be more motivated and flexible when dealing with a buyer next to out an agent.Answers: Advantage - you can see all of the houses you choose to, even those down as FSBO, and lease option. A agent who is getting salaried through a commission is less plausible to show you any of those (since there this no commission for them to split), and they are more promising to show you there brokers listings first to keep hold of the commission "in the family".
Disadvantage - if you do not know your bazaar, you can overpay for your house, and the sellers agent won't articulate a peep. As long as the buyers agent is getting a flat tax, they won't have a conflict of interest, and are more potential to give you accurate comps for open market value, and to show you those houses outside of what would generally get them a upright commission. Also, unless you are an experience investor, you are going to have a strong time navigating the system.
If you as a buyer contact a realtor who have the house listed, they would receive the entire commission instead of splitting it with your realtor. To lower the price, the seller might get them to curtail their commission, but not much. If you don't have an agent contained by tow, you might get a better buy and sell on a FSBO.
Remember, the listing agent represents the dealer, not you.
Good luck.
No real help, unless the Seller is doing a For Sale by owner. When a Seller hires an agent the agent contract is at a set price with or lacking you having an agent. Listing agents as they are call have be known to enter into a contract near a seller at a 6% commission. Then they will one and only offer 2% to the Selling agent (buyer's agent). This happen...
The listing contact determines how much of a commission the Seller is inclined to pay and the almanac agent determines how much of that they are willing to tender the Selling agent.
Also if they have an agent and you don't afterwards the listing agent will any find one for you or represent both sides and keep adjectives the commission...
AW
It depends on whether or not the property is listen with an agency for Dutch auction. If it is, the listing broker is going to collect a full commission, regardless of whether or not YOU hold an agent representing YOUR interests. In the case of a property tabled with a material estate firm, you are always advise to obtain a buyer agent to represent YOUR interests. It costs you nought, since that agent will normally adopt the commission split offered by the listing agency.
As a buyer agent, I own also represented buyers who sought FSBO properties. Some sellers balked at that thought, but I still represented the buyer to the best of my abilities. In several situations, the buyers be pleased to have my representation, since I save them from making a purchase not in their best interests.
Be guided properly.
In this volatile market where on earth so many family have made desperate mistakes, there is NO help unless you are a saavy person who know how to buy, negotiate, write a solid contract and get to closing. That is what a realtor is salaried to do for you as the buyer and more than likely is rewarded their commission by the seller. It is worth it to hold a Buyer's Agent working for you!! Costs you nothing and you catch an expert.
WHAT ARE SOME WEBSITES to find California apartments or rental suites?
WHAT ARE SOME WEBSITES to find California apartments or rental suites?Im Moving to California, La
To pursue my acting career and i inevitability some websites that I can find Apartments for rent or rental homes or basement suites
I similar to the ones that u can actually see contained by the place thats for rent
If so thx !
Answers: Have you tried craigslist?
http://losangeles.craigslist.org/
u post too much