domer,

That is my understanding. It is 2y of the last 5y, which will expire in 3y + 1d. I would speak to a RE attorney in ~2-2.5y, as a 1031 exchange may be a better option. (Depends on the interest rate environment, equity in property, options to convert, what you want to do, etc)

I def would not sell it initially.

Maybe I'm not understanding exactly what you're asking, but converting a personal home to a rental doesn't trigger capital gains tax. You are correct that the Section 121 exclusion applies so long as you've used the property as your primary residence for 2 out of the last 5 years. Also, there is absolutely no reason from a tax perspective to hold your re tal property in an S corporation. In general, holding real estate in a corporation is a bad idea.

Basically, all you need to do is start renting, setup a depreciation schedule, and report uour rental income and expenses on Schedule E.

Selling it would trigger the capital gains tax which would allow him to pocket the appreciation.

Also, if you are eventually going to sell you can always convert your rental back into your primary residence and live there for a few years before selling. That would eliminate the capital gains, although you might have to recapture your depreciation. You could also do a 1031 exchange as Mikhel suggested.

You'll have to recapture during the rental period. Don't think that is a "might" unless you want some high IRS heat.

Yeah it's a figure of speech and im writing on my iphone because my girlfriend is shopping and im bored. In reality, there will be depreciation recapture but that is sometimes more than offset by suspended passive losses when a property is sold since depreciation is recaptured at 25% rate and he might be in a higher bracket. Anyways, we're getting a bit nitpicky here so I think that's enough free advice for one day.

He should never have suspended passive losses since he should take on some form of active role with regard to managing the rental. Unless he makes no money, then that is fine I guess.

I just moved to malta and i think about building up a luxury resort but not in the common sense with a big junk of buildings. I am thinking of luxury tents which are up to 110 square meters of space, the range of value will be between 10.000 and 25.000 euro for one tent. Thinking about renting it out per day and week. Do you have any idea how to start to setup this tent business?

My thoughts here about my goals are more steps, I would like to create a cashflow, i did of course some calculations about ocupacy dependend on the long season, took instead of 100% 80% ocupacy rate over 250 calender days which would be 200 days. Taking up to 100 euro for 2 people per night and 150 for one night, the actual investment ..would pay off.. in a couple of months already instead of bigger investments to buy apartments and rent them i see a high potential of immense cashflow in the tent idea.

Wondering on peoples opinion.

I got a flat in central London. I advertised it online and got a text message asking me to send an email to the persons wife since they might be interested.

We exchanged emails and they asked for some pics so I gave them the online link. They emailed me their passport (Chinese woman, 23 years old) and asked if they could take the place for 3 months and said if it is available they would take it for longer.

They asked to pay me for 3 months in one go to reserve it and said that they would pay me on PayPal so they can show that to their employer and at immigration when entering the country.

Trouble is I can't carry out many checks since they are flying in from China. Maybe I could ask for their employer and check their employment details. I have had mixed advice. Someone said to not go with them because I can't carry out checks and my other friend, who deals a lot in reale state, said to me that if they pay then just take them.

I think the person who told me not to said they could theoretically just stop paying after 3 months and getting rid of people is hard here in the UK.

Advice would be appreciated.

Thanks.

That's an old scam. Never accept payment via PayPal especially from foreign countries. It's not worth the risk.

https://www.paypal-community.com/t5/...ut/td-p/655576

While this is about a "boat" and the "buyer" is from "México" I'm sure that if you were to accept the renter it would play out similarly:

https://safeandsavvy.f-secure.com/20...a-paypal-scam/

How does someone like me, who has some money, get started in REI without going through the hassle of learning the ins and outs. Are there REI consultants who can help facilitate things and lessen the learning curve? I know that sounds lazy but I don't really have much interest in learning the complexities of REI, but would still want to get started in it...

Thank you so much.

I owe you a favour.

Not that hard to read a few books and listen to some podcasts

True, same applies to poker, right?

Do you live in a city in the United States?

There are a lot of turnkey companies for every county but I do not suggest them, because obviously they keep an edge for themselves and that edge is key to scaling imo. Sure if you want to buy a couple of buildings in your lifetime to retire with, it could be good for you. I'm very surprised more poker pro don't invest in real estate honestly. I would suggest working with an investor friendly agent instead and obviously you will need to educate yourself, I always recommend biggerpocket.com, it's the twoplustwo of RE.

I wish I was in the USA to be honest, ya'll getting 10%+ cash on cash returns... just printing money. I always had it in the back of my mind to just sell everything I have, move to jacksonville, grind and invest in multifamilys. I'm so jelllyyyyyy

You think RE guys in the US are making 10%+?

10% is doable, buy some reits and you can enjoy nice returns with no effort. https://www.reit.com/data-research/r...r-long-periods

I don't think REits are good enough personally, you get no tax benefits, no depreciation, no leverage but you get it for less work, less risk, less stress & also need less capital.

Some REITS are leveraged. They are also often more liquid, more diversified and run by people likely smarter than the average local RE guy/you.

I always thought the leverage they offer benefits themselves, not you as an investor, since you are just basically buying a stock.

They are definitively a good investment but REITS are not even close to the RE I own and I own very little. On top of that my market is terrible compared to the USA when it comes to cashflow, I'm not sure how to explain it/would just be guessing anyway.. funny how a few changes in the general financial structure of your country can influence housing so much. People invest in RE (multifamily) for the tax benefits here it seems, because the general market is around 100k a door for something you can rent around 700-800 a month. (You barely break even every month with 25% down) I have never heard of someone renting a house profitably. You just dont make any money, people who rents SFH here are trying to sell and renting it until they do.

I'm in canada if everyone is wondering. I really regret not knowing what I was doing in 2012 when our dollars was strong and I was motivated to play poker. Of course you guys have a few bloated markets like mine but you still got a few beautiful markets with a lot of potential and honestly a very easy transition from poker, use it.

OP, is it even worth investing in real estate if you cannot get 1% a month in rent from the purchase price? Let us say if you purchase a flat for 300'000$ and can't rent it for 3000$+ a month, is it even worth it? I can't find such deals anywhere at all. Apartments that are 300'000$ here go for 700$ in rent, so it is a very low ROI and will take decades to get back, better just invest in stocks and let the compounding do the work.

Where can you rent a $300k flat for $700 per month?!

Considering purchasing a mountain get away cabin for myself, but would likely air bnb that some of the time. Have never done that before, and thought about worst case scenario....where visitor like falls off the deck and sues.

What's the best way to mitigate possible legal liability (as random as it may be) from the outset that makes sense? I'm really just thinking about trying to rent it out maybe 5-10% of the time.

ski-in, ski-out?