/biz/ - Business & Finance

Instead of a quad in coon town look in halfway decent neighborhoods for a duplex.

Live in one half and rent the other out. Get owner occupant financing without having to lie.

When it's time to sell, pocket the capital gains tax-free since you'll meet 2 year residency and ownership requirement (US).

This is the best real estate advice you will ever be given. You're welcome.

>>516781
Whats the tax break on that give me an example? fake numbers in w.e state/area you know of.

>>516432

do your research there are poor areas where the people are shit criminals and there are poor areas that are just poor. Also rent to old people on section 8 they will stay there for years and always have rent. Though they may shit the carpet and/or themselves, which isn't really your problem until they die in 6 years when you have to just have the wholet thing professionally cleaned

>>516432
Don't rent to blacks.

>>518041
Google "long term capital gains tax", the tax savings depend on your total income.

Example: I'm single and make $75k a year. That means I pay 25% marginal tax rate on ordinary income and 15% on long term capital gains.

If I sell a house I've owned as an investment for more than one year and net $50k I'd pay 15% LTCG tax = $7,500. If I had lived there and owned it for at least two of the past five years I'd pay no capital gains tax.

If I held it for less than one full year I'd pay 25% STCG tax (same rate as ordinary income) = $12,500.

>>516432
why not a duplex in a not shitty area to start and just make the numbers work so the other dudes paying your mortgage?

your largest monthly bill is your rent so if thats coverd then cash. Also its building equity AND you get to try being a landlord and decide if you dread it or not.

>>518249
Because if the guy could buy the place with what he's giving you for half the building why would he rent with you? You have to be competitive in renting as well as saving.

There's alot to bring a landlord OP, and even if you do everything right you can still get fucked. Take time and read about it

>>518427
in france it doesnt work. you cant have a morgage higher than a third of your net salary.
in some city the real estate is soo high that you cant become an owner because it would put you higher than the threshold... but guess what you can still rent a plaace that ll suck up half of your salary and still manage. But as for a loan for the same monthly amount and the bank will tell you to fuckoff... go figure

>>518059
if you can afford the upkeep a HUD property is a good idea cause the gov cuts the check also look to into programs your city may have where they help pay some of the rent for low income people. The ghetto can bring in some cash if you do your homework and screen people

>>516432
holy ship

>>518063

THIS is the real legit advice. Dont rent to nigs or mexicans. Screen your tenant VERY carefully cause once theyre in, they get all kinds of bullshit rights that can really fuck your shit up.

Source: i have rental property

>>518476
i hate how nigger sandnigger and chicanos have such an extensive knowledge of the legal system when it comes to not paying what they ought to. m
if they used a half of all their energy they use in order to fuck you over they wouldnt have to rely on foodstamp and wellfaae

>>518433
>But as for a loan for the same monthly amount and the bank will tell you to fuckoff... go figure

That's because the interest rate is low now, but it won't be that way forever. So all the people who borrow more than 3x their salary would be unable to pay when the interest rate eventually skyrockets. And that would cause the financial system to collapse.

>>518486
that s a law that is old as fuck in france. it has nothing to do with interrest and interrest stay the same the whole duration of your mortgage.
it ok to earn 1500$ nmand spend 750$ on a rent but not to mortage for 750$ and become an owner cause you are only alloned to have a total debt bill egual to a third of your salary therefore preventing you to own your appartement....

>>516781

Keen to know more about US capital gains tax. Is there a minimum non-commercial period. For example you can have a primary residence for 6months, 404 from it and rent it out, then have 5yrs to sell it without a triggering a CG event.

Particularly useful when if moving abroad for for work.

>>518433
>but in one country you only spent a week in, it doesn't work anon
>you should know this!

bumping for interest