Where my fellow Doge coin billionaires at?

[Boarman03]

19 hours ago, stanley said:

Russ, and others;   Curious if anyone has become involved in the Airbnb/VRBO business??

A couple of years ago I bought a house in south Scottsdale (just south of the Old Town area).  Turns-out that due to proximity to that touristy/party spot, my neighborhood is apparently super hot for the short term rental business.  There are two on my street, and I've gotten to know the owners/property-managers quite well.  One was recently purchased for just over $600K, and the buyer is in it ONLY for the short term rental business.  Said he expects a 30-35% annual ROI after expenses.  CRAZY returns that have me considering renting or buying a small condo to live in and rent my place out too! LOL

Anyway, anyone doing that??

I've heard similar things. I'm considering doing a couple of houses that way. Typically larger homes with pools, spas work out real well I'm told. I'm fairly slow at entering new areas and do so with great trepidation.

I did discover that if any management company does not collect and pay the sales tax that then the Owner would still be liable with penalties.

Also, for me, I like the greater likelihood of a steady stream of income and more steady people. I don't have to furnish my rentals and don't include refrigerators. I don't want to get sued if someone gets sick. Same with jacuzzis. If a property has one I remove it due to greater liability. I only have one property with a pool.and it's not in use, needs to be rehabbed.

I have two smaller properties but they are located near the Hohokam Stadium that Oakland uses for Spring Training.They are quaint older properties with orchard and land. But I would then also have the added expense of yard and regular cleanup. I'm not sure my net would be any better with the rents the way they are currently.

Part of the rent increase, I'm certain, was due to the few dead beats (or potential deadbeats, and I evicted 2 to their surprise during Covid) who didn't pay and caused a greater expense, not to mention increased insurance and property taxes/sales tax. Insurance increases if the use changes. And some neighborhoods are beginning to fight against VRBO's, and cities are passing strict laws. 

My Rant:

I never understood the greed of the cities putting sales tax on regular residential rentals. Why are they extra taxing the poor? Property tax is also higher. That extra $40 to $60 a month can really hurt a poor family, and the property owner is not going to absorb the cost. It is passed on to the tenants.

Back to the subject:

Everything has its pros and cons. The more knowledge one has on the subject, the greater the chance of success if one does decide it merits the risk. Otherwise, one is just gambling blindly.

"A wasted dollar is never regained."

 

[daryl_s]

On 10/31/2021 at 10:27 AM, stanley said:

Russ, and others;   Curious if anyone has become involved in the Airbnb/VRBO business??

A couple of years ago I bought a house in south Scottsdale (just south of the Old Town area).  Turns-out that due to proximity to that touristy/party spot, my neighborhood is apparently super hot for the short term rental business.  There are two on my street, and I've gotten to know the owners/property-managers quite well.  One was recently purchased for just over $600K, and the buyer is in it ONLY for the short term rental business.  Said he expects a 30-35% annual ROI after expenses.  CRAZY returns that have me considering renting or buying a small condo to live in and rent my place out too! LOL

Anyway, anyone doing that??

I know of two people at my job that are currently doing this in the exact area you just mentioned. One of them showed me the numbers for his airbnb house over the last year and in off peak months he grossed around $6k and in peak months he was grossing around $12k. 

[Boarman03]

2 hours ago, daryl_s said:

I know of two people at my job that are currently doing this in the exact area you just mentioned. One of them showed me the numbers for his airbnb house over the last year and in off peak months he grossed around $6k and in peak months he was grossing around $12k. 

Was that per month, or for those time periods?

[daryl_s]

4 minutes ago, Boarman03 said:

Was that per month, or for those time periods?

Per month 

[Roosevelt Mark]

5 minutes ago, daryl_s said:

Per month 

Nice

[Boarman03]

54 minutes ago, daryl_s said:

Per month 

Was that gross, or net? Don't get me wrong, gross beats $2,000 per month in gross rents residential lease.

[5guyshunting]

This thread has certainly been derailed.

[daryl_s]

4 hours ago, Boarman03 said:

Was that gross, or net? Don't get me wrong, gross beats $2,000 per month in gross rents residential lease.

Gross

[daryl_s]

1 hour ago, 5guyshunting said:

This thread has certainly been derailed.

I wouldn’t say derailed so much, more like off on a tangent. It still has to do with investing your money. 

[Boarman03]

I heard Tesla soared up to nearly $1200 after being as low as $500 at one time. My brother bought in around six hundred and just sold at almost $1200. Nearly doubled his money. I don't have time to research and follow stocks and I don't know the rules. He said he has to wait at least three days before he reinvests or the IRS wants to tax it as a margin call, or something like that.

If you earn money with Doge how does the not so silent partner (IRS) tax it? If you held it less than a year, isn't it taxed as short term capital gains? How do you collect your earnings?

[stanley]

Crypto is generally treated the same as any other capital investment (short term, long term, etc..).

[MULEPACKHUNTER]

Capital gains over a year held, considered income under a year. Typically under 40,000 capital gains is zero then goes up from there depending on amount. 

[MULEPACKHUNTER]

Make yourself a chart for income and capitol, I like to know each year what our buffer is over our income before we hit the next tax bracket, this way you know what you can sell short term and stay in say the 24% range. 
 

[MULEPACKHUNTER]

Something to think on hard is Roth tax advantage. For us poor folks the Roth is really the only shelter offered. There is buzz going around that could effect higher income loopholes and who knows maybe current Roth holders as well. Some dingbat hit it big with a back door Roth rollover and bragged about his account now the fed is eye balling the process. 

[firstcoueswas80]

1 hour ago, MULEPACKHUNTER said:

Something to think on hard is Roth tax advantage. For us poor folks the Roth is really the only shelter offered. There is buzz going around that could effect higher income loopholes and who knows maybe current Roth holders as well. Some dingbat hit it big with a back door Roth rollover and bragged about his account now the fed is eye balling the process. 

Since my divorce, all my TSP contributions have been Roth.