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Buy rental and property

1,208 Views | 4 Replies | Last: 3 yr ago by SteveBott
BMF_AG95
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AG
So the other thread about buying the house next door got me to thinking about a few things.

We are both w-2 employees and had a bigger tax bill this year than we expected. An option we are thinking of is buying a rental property to help with taxes (depreciation and interest). I know there are plenty of experts on here. We are thinking about buying a house and then rent out to a parent.

Setup LLc and buy in it? Don't foresee buying a second rental for a long time as we have other desires.

Could we use our cash as down payment then parent gift us cash to replenish our cash to buy property later this year. Has anyone done this before? I'd want to "pay" back parent in some form or fashion because other siblings are involved. Maybe interest in LLc - seems complicated.
hopeandrealchange
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BMF_AG95 said:

So the other thread about buying the house next door got me to thinking about a few things.

We are both w-2 employees and had a bigger tax bill this year than we expected. An option we are thinking of is buying a rental property to help with taxes (depreciation and interest). I know there are plenty of experts on here. We are thinking about buying a house and then rent out to a parent.

Setup LLc and buy in it? Don't foresee buying a second rental for a long time as we have other desires.

Could we use our cash as down payment then parent gift us cash to replenish our cash to buy property later this year. Has anyone done this before? I'd want to "pay" back parent in some form or fashion because other siblings are involved. Maybe interest in LLc - seems complicated.


As I was reading this I was thinking great opportunity for all involved until I saw the word sibling.

If you want a long term relationship with your siblings don't do it.
Anything you do right or wrong someone is going to get upset about something. I know it sounds silly but it will happen.
schwack schwack
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AG
Quote:

If you want a long term relationship with your siblings FAMILY don't do it.

Anything you do right or wrong someone is going to get upset about something. I know it sounds silly but it will happen.
FIFY. Happen, it does.
Keeper of The Spirits
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AG
Trust Schwack and give us an update on the other thread
SteveBott
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AG
Don't do business with family is the BEST advice ever given on this forum. If you learn anything here that's the one item is a must.

OP if you plan on financing forget the LLC. Conventional loans won't allow it. Just get an umbrella insurance policy and a generous home policy.
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