[Ron_in_the_House]

Hi Everyone,

I am in a big dilemma here, any suggestions will be greatly appreciated.

I came to vegas a week ago looking to purchase real estate. i am planing to purchase in Cash, rent it a few years and helpfully sell in the future.

The thing is, looking at the numbers, after paying Property tax, HOA, Property management,Accountant,10% Federal Tax and other things that comes along with that i found out that not much left in hand, in case i rent the property for 1350$ you left in hand with about 700$

Is that a good investment for putting down 150 to 200k?

What is your opinion?

I know some may say it can benefit in the future, but isn't that a big risk?

Sorry for my bad english, any ansewr will be greatly appreciated!

[tony soprano]

Originally Posted by Ron_in_the_House

The thing is, looking at the numbers, after paying Property tax, HOA, Property management,Accountant,10% Federal Tax and other things that comes along with that i found out that not much left in hand, in case i rent the property for 1350$ you left in hand with about 700$

Is that a good investment for putting down 150 to 200k?

What is your opinion?

If this is purely an investment that you intend to harvest in a few years, and if the assumptions you've provided are correct, I'd say it's a marginal to just plain bad investment.

[MomMom]

Originally Posted by Ron_in_the_House

Hi Everyone,

I am in a big dilemma here, any suggestions will be greatly appreciated.

I came to vegas a week ago looking to purchase real estate. i am planing to purchase in Cash, rent it a few years and helpfully sell in the future.

The thing is, looking at the numbers, after paying Property tax, HOA, Property management,Accountant,10% Federal Tax and other things that comes along with that i found out that not much left in hand, in case i rent the property for 1350$ you left in hand with about 700$

Is that a good investment for putting down 150 to 200k?

What is your opinion?




I know some may say it can benefit in the future, but isn't that a big risk?

Sorry for my bad english, any ansewr will be greatly appreciated!

If you're not going to actually live in the house, don't do it. You're a few years too late, because those days of using your Las Vegas investment house as a cash register are over for good.

[olecapt]

Numbers don't compute. For investment $60 or $70 per SF. So 2000 SF needs to be around $120,000 to $140,000. $1200 per month grosses 14,400...Taxes 1300/12=110...HOA=$40....PM=120 Reserve at 20%=$240...so a net of around 1200-510 = 690 or 8300 or about 6%.

That would be before depreiciation or any appreciation. I certainly would count on minimal appreciation for the next couple of years.

Fed Tax would be on the net after depreciation and would not likely rise to 10%...

[tony soprano]

Originally Posted by olecapt

Fed Tax would be on the net after depreciation and would not likely rise to 10%...

He's not a US citizen. I believe he's allowing for taxes originating from his home country. Wherever that may be.

[olecapt]

Originally Posted by tony soprano

He's not a US citizen. I believe he's allowing for taxes originating from his home country. Wherever that may be.

There is a witholding requirement. But not a tax one. Just means he has to file a US Tax return on the US income. The witholding is I think at 30% on gross rentals.

[tony soprano]

Originally Posted by olecapt

There is a witholding requirement. But not a tax one. Just means he has to file a US Tax return on the US income. The witholding is I think at 30% on gross rentals.

It's going to depend on a number of factors including, but not limited to, how he structures the ownership, and the tax code of his home country. Just because he pays US taxes on the rental income does not necessarily mean he's not going to have additional tax obligations from his home country. He'd do well to seek advice from a tax attorney or accountant from his home country.

[hockeygirl4]

Please don't "invest" in the home I'm looking to buy and then rent it out...that would really upset me! :*(

[olecapt]

Originally Posted by tony soprano

It's going to depend on a number of factors including, but not limited to, how he structures the ownership, and the tax code of his home country. Just because he pays US taxes on the rental income does not necessarily mean he's not going to have additional tax obligations from his home country. He'd do well to seek advice from a tax attorney or accountant from his home country.

Actually he needs to structure it correctly in both the US and the home country. And it is CPA or chartered accountant stuff. My mother was a tax attorney. Not their bag.

Note however that is general advice true of any deal...national or international.

[tony soprano]

Originally Posted by olecapt

Actually he needs to structure it correctly in both the US and the home country. And it is CPA or chartered accountant stuff. My mother was a tax attorney. Not their bag.

Note however that is general advice true of any deal...national or international.

Not your mother's bag, perhaps. My tax attorney created a foreign held entity for me. As long as they're competent, whom he actually retains to structure the ownership is really moot. The point is, in all likelihood, he's going to have a tax liability over and beyond US income tax. Maybe at some point he'll share where he's getting his 10% number from.