Source of income

[AnaAndDaniel 0]

we own a rental. in mexico. but it in no way meets 25 % of our income.

in fact the rent only covers about 90% of costs. more of a long term investment.

what kind of business you looking for gupt?

I don't know.. I'm just fishing for information for now.

So this rental, do you pay someone to manage it for you?

yes, they get a percentage of the rent. they deposit the net gain into an account of ours.

long story short, in a few years we will own it ouright and the income will be used for our expenses in mexico whenever we travel there. plus being real estate, in the long term it should be a worth quite a bit later on down the road.

Daniel

:energetic:

[w¡n9Nµ7 §£@¥€r 123]

we own a rental. in mexico.

So this rental, do you pay someone to manage it for you?

yes, they get a percentage of the rent. they deposit the net gain into an account of ours.

Is that how it would work in the US as well? I am debating selling vs renting my townhouse in New Jersey when we finally move out of this state. I believe if I rent, I have to pay capital gains taxes on the profit if I rent it for more than 2 out of the last 5 years. If I sell, it's all tax free (i think). But anyway back to the logistics of renting, do you know if that is how it works in the US? I've tried googling this stuff and I haven't found any good websites on the subject.

[AnaAndDaniel 0]

we own a rental. in mexico.

So this rental, do you pay someone to manage it for you?

yes, they get a percentage of the rent. they deposit the net gain into an account of ours.

Is that how it would work in the US as well? I am debating selling vs renting my townhouse in New Jersey when we finally move out of this state. I believe if I rent, I have to pay capital gains taxes on the profit if I rent it for more than 2 out of the last 5 years. If I sell, it's all tax free (i think). But anyway back to the logistics of renting, do you know if that is how it works in the US? I've tried googling this stuff and I haven't found any good websites on the subject.

no, I do not know how it works here in the US. a former coworker was a a former property manger. he told us that it is a bear. laws are way too tilted towards the renter in some cases. if you get lucky then yeah, definitely works out.

good luck in finding an extra revenue source.

you may also look into cutting costs.

in any case, have defined and measurable goals. find a way to meet them.

Daniel

:energetic:

[meauxna 15]

Is that how it would work in the US as well? I am debating selling vs renting my townhouse in New Jersey when we finally move out of this state. I believe if I rent, I have to pay capital gains taxes on the profit if I rent it for more than 2 out of the last 5 years. If I sell, it's all tax free (i think). But anyway back to the logistics of renting, do you know if that is how it works in the US? I've tried googling this stuff and I haven't found any good websites on the subject.

I think you might have it backward.

Rental income is an income class on your returns; it can be a nice ongoing income. Money put back into the property is an expense, reducing your income tax. You don't take the gain until you sell.

The '2 of the lsat 5 years' is the holding period for a longterm investment and it needs to be your primary residence.

I may have butchered some or all of the above (haven't filed my first return yet).

You can hire a property manager (firm or individual) to manage your rental (good idea if you no longer live in the same city). It's usually a percent of the monthly rent (I get 8%) plus more for turnovers (move in/out re-rent).

Check out this group: misc.invest.real-estate

http://groups.google.com/group/misc.invest...gschg&hl=en

We just 'flipped' our first house and 'earned' too much money on it, too quickly from a tax standpoint. It could've made sense to hold it longer, rent it out (even lease to buy would have worked) but everyone has their own short, mid and long range goals, and this particular place, well, it made the most sense to move it along. It gave us a good education and a good nut to start the next one with.

My family has always held rentals, and I have to say, it wouldn't hurt my feelings to follow in my parents' footsteps. Unless I can just inherit their empire.

(notgonnahappen)

Edited October 26, 2006 by meauxna

[w¡n9Nµ7 §£@¥€r 123]

You can hire a property manager (firm or individual) to manage your rental (good idea if you no longer live in the same city). It's usually a percent of the monthly rent (I get 8%)

You manage someone elses rental property or do you mean you've rented out a property you own and you pay 8%?

... this particular place, well, it made the most sense to move it along.

What was your reasoning behind wanting to sell vs rent this particular place?

[Delhiguy 0]

Outsourcing income generating approx. 75% (varies) of my monthly income (I know I might touch a few raw nerves here, not my intent)

Used to work for an outsourcer earlier, but was unemployed due to a move (personal reasons) last year for 4 months, during which I consulted with a contact centre here in India and hooked them up with a client and established their process (one month's work). The income is now monthly (%revenue) and I just check in once a while while I also have my job.

[Nikita2Charles 32]

Is that how it would work in the US as well? I am debating selling vs renting my townhouse in New Jersey when we finally move out of this state. I believe if I rent, I have to pay capital gains taxes on the profit if I rent it for more than 2 out of the last 5 years. If I sell, it's all tax free (i think). But anyway back to the logistics of renting, do you know if that is how it works in the US? I've tried googling this stuff and I haven't found any good websites on the subject.

I think you might have it backward.

Rental income is an income class on your returns; it can be a nice ongoing income. Money put back into the property is an expense, reducing your income tax. You don't take the gain until you sell.

The '2 of the lsat 5 years' is the holding period for a longterm investment and it needs to be your primary residence.

I may have butchered some or all of the above (haven't filed my first return yet).

You can hire a property manager (firm or individual) to manage your rental (good idea if you no longer live in the same city). It's usually a percent of the monthly rent (I get 8%) plus more for turnovers (move in/out re-rent).

Check out this group: misc.invest.real-estate

http://groups.google.com/group/misc.invest...gschg&hl=en

We just 'flipped' our first house and 'earned' too much money on it, too quickly from a tax standpoint. It could've made sense to hold it longer, rent it out (even lease to buy would have worked) but everyone has their own short, mid and long range goals, and this particular place, well, it made the most sense to move it along. It gave us a good education and a good nut to start the next one with.

My family has always held rentals, and I have to say, it wouldn't hurt my feelings to follow in my parents' footsteps. Unless I can just inherit their empire.

(notgonnahappen)

meauxna is right, and I also would like to add, you can keep up to $250,000 tax free in Profit of your home sell, but you must have lived there for the past 2 years prior to the sell, and Since you are married that's another 250k, so you can get $500,000 Tax free profit from your home sell.

There are so many ways to take advantage of your equity. one of my cousin bought this house in Queens for $280,000, now it's worth $450,000. So they refinanced last year and take some of the equity to buy another property in Atlanta Georgia, so it's all a matter of managing your cash flow. Right now the NY property is in Rental, so it's possible not rich folks just average folks

Edited October 26, 2006 by Nikita2Charles

[meauxna 15]

You can hire a property manager (firm or individual) to manage your rental (good idea if you no longer live in the same city). It's usually a percent of the monthly rent (I get 8%)

You manage someone elses rental property or do you mean you've rented out a property you own and you pay 8%?

... this particular place, well, it made the most sense to move it along.

What was your reasoning behind wanting to sell vs rent this particular place?

I am paid 8%. Managing a rental is one of my income producing activities. Well, it's not very "active", but it does cut a check every month.

This particular place? It has issues overall. I'm sure it will be a lovely purchase for the next guy. I got the property for below market value and sold it in a hot bidding war.

Oh yeah, I'm out all those dumpster fees.

There are so many ways to take advantage of your equity. one of my cousin bought this house in Queens for $280,000, now it's worth $450,000. So they refinanced last year and take some of the equity to buy another property in Atlanta Georgia, so it's all a matter of managing your cash flow. Right now the NY property is in Rental, so it's possible not rich folks just average folks

Thanks for your confirming comments. Like my returns weren't already a nightmare.

I totally agree with you tho---real estate is NOT a rich person's game. It's a great way for the average guy to build wealth, and you really don't need much to get started. Like I said, following in my folks' path would not hurt my feelings. We were dead broke and on the wrong coast when we came back from Spain (mid 70s) and what they achieved in 15 years was nothing short of amazing.

Oh yeah, Gupt, add 'book publisher' to the list; I'm supposed to be working on my Dad's future best selling book with the story of how he did it and you can too.

[w¡n9Nµ7 §£@¥€r 123]

...you can keep up to $250,000 tax free in Profit of your home sell, but you must have lived there for the past 2 years prior to the sell

I've been doing some reading on this today. I believe you must have lived there for 2 of the past 5 years prior to the sell. Not the 2 years prior to the sell.

Edited October 27, 2006 by Gupt

[almaty 19]

Hoping to learn something. Answer away!

was a pimp..but it became a job..pimping ain't easy brother....passed the business to my brother junglee

Edited October 27, 2006 by almaty

[AnaAndDaniel 0]

...you can keep up to $250,000 tax free in Profit of your home sell, but you must have lived there for the past 2 years prior to the sell

I've been doing some reading on this today. I believe you must have lived there for 2 of the past 5 years prior to the sell. Not the 2 years prior to the sell.

that is how I understand it too. One big problem is that you need to be able to carry the payments for as long as there is no renter.

I work for a large company with offices on both coasts. including charlotte north carolina. my manager who lives over there said i should sell my california house, take the equity, buy two houses in charlotte, with essentially the main house paid off and the rental being paid by the renter. tempting.

Daniel

:energetic:

[w¡n9Nµ7 §£@¥€r 123]

I work for a large company with offices on both coasts. including charlotte north carolina. my manager who lives over there said i should sell my california house, take the equity, buy two houses in charlotte, with essentially the main house paid off and the rental being paid by the renter. tempting.

I've considered doing just that with a potential move to Texas or North Carolina. Problem is my 'equity' is dropping right now because of the real estate meltdown and I'm not ready move yet. By the time I'm ready, who knows how much equity I will have left?

[AnaAndDaniel 0]

I work for a large company with offices on both coasts. including charlotte north carolina. my manager who lives over there said i should sell my california house, take the equity, buy two houses in charlotte, with essentially the main house paid off and the rental being paid by the renter. tempting.

I've considered doing just that with a potential move to Texas or North Carolina. Problem is my 'equity' is dropping right now because of the real estate meltdown and I'm not ready move yet. By the time I'm ready, who knows how much equity I will have left?

that is a problem. on the plus side, if you do sell the property at some profit level, that money sill go further in other areas for they too will be dropping.

for me it is more of a quality of life issue.

Daniel

:energetic:

Edited October 27, 2006 by AnaAndDaniel

[w¡n9Nµ7 §£@¥€r 123]

I work for a large company with offices on both coasts. including charlotte north carolina. my manager who lives over there said i should sell my california house, take the equity, buy two houses in charlotte, with essentially the main house paid off and the rental being paid by the renter. tempting.

I've considered doing just that with a potential move to Texas or North Carolina. Problem is my 'equity' is dropping right now because of the real estate meltdown and I'm not ready move yet. By the time I'm ready, who knows how much equity I will have left?

that is a problem. on the plus side, if you do sell the property at some profit level, that money sill go further in other areas for they too will be dropping.

for me it is more of a quality of life issue.

To me, not having a mortgage on my primary residence is a quality of life issue.

Edited October 27, 2006 by Gupt

[AnaAndDaniel 0]

I work for a large company with offices on both coasts. including charlotte north carolina. my manager who lives over there said i should sell my california house, take the equity, buy two houses in charlotte, with essentially the main house paid off and the rental being paid by the renter. tempting.

I've considered doing just that with a potential move to Texas or North Carolina. Problem is my 'equity' is dropping right now because of the real estate meltdown and I'm not ready move yet. By the time I'm ready, who knows how much equity I will have left?

that is a problem. on the plus side, if you do sell the property at some profit level, that money sill go further in other areas for they too will be dropping.

for me it is more of a quality of life issue.

To me, not having a mortgage on my primary residence is a quality of life issue.

everyone needs to make those decisions. for us, that qualifies as a strong secondary goal.

Daniel

:energetic: