The really smart kids though would BUY the house. They would then rent rooms to their friends and collect the rents.
After college was over they would refurbish the home and sell it getting a nice little financial launching pad for their career.
I even had one friend who was so successful at doing this that he never finished his degree. He simply went on to fix up homes to sell and or rent.
Becoming a landlord is one of the most common paths to real estate investing
Many of my clients express the desire to pay off their home and then go buy another one so they can rent theirs out. Almost everybody realizes real estate is one of the fastest tracks to financial freedom.
The thing is you do not even have to wait until you have paid off the home to start renting. You can rent bedrooms for special events such as the gem show in Tucson where all the hotels book up quickly.
Either way you want to make sure you are taking advantage of tax ride offs and properly accounting for the rental income.
Introducing Cooper McGeorge, Tax consultant & Owner of McGeorge Accounting Services
In the following discussion Cooper explains what is considered renting and what is considered “personal use”. He also gets into some serious ride off allowances you will want to make SURE you take advantage of. If you are considering renting your home then you will defiantly love what he has to say!
- What is considered renting and what isn’t
- Allowable rental deductions
- How to ride off repairs
- Depreciating rental property purchase
- And more
Got tax or accounting questions?
Tax law is exceptionally complex. You will certainly have more questions for Cooper when you are done. Grab a pen and paper while you listen to the podcast and write down any questions you have. Drop him a line after the podcast at firstname.lastname@example.org or call him at 520-610-2454 and make sure to tell him I (matthew) said hi!
Want to know more about Cooper McGeorge?
Cooper and his wife graduated from the University of Arizona back in 2008. They have a growing tax practice with an offices in Tucson, Arizona. They recently added a new office up in Phoenix and work between the two. Cooper has advised me on my taxes ever since I became a business owner back in 2010. He is an exceptional accountant and what sets him apart from the rest is his level of service. He’s quick to answer questions and excellent at explaining the intricacies of tax law.