Posts Tagged ‘should’

I just sold my house in California (thankfully) and have about 150 grand to spend. I’m looking at moving into a new 125k house, but I’m thinking of getting a rental property and allow that to help offset my mortgage. Taxes are 2.7% here for real estate. I make about 100G’s a year, 42 and I live alone. Not sure about the hassle of rental property though.

I have a condo that I live in for 6 months last year and rented to a friend for the other 6 months. What are the tax implications of claiming the rental. Considering my friend paid less than my total costs, so it qualifies as rental-not-for-profit. What are the pros/cons of regular rental property claim versus rental-not-for-profit? I believe there are some differences in terms of depreciation, deducting assessments, and tax basis on sale. I plan to sell my condo this year, so there would be approximately 1 year of rental.

When applying for loans should I indicate that I plan on using this as my primary residence or apply as a rental? I know what I should do, but I want to know what the common practice is. A mortgage broker friend told me I would be stupid to get a loan as a rental property and to say it was my primary.

It’s a dream of mine to flip a house. I don’t know anything near what I need to know in order to be successful. Where can I begin to learn the necessary information so that I can be well-informed if and when I do it in the future?