Maximizing Tax Benefits and Reinvesting for Real Estate Portfolio Growth

Explore the tax advantages of house hacking, with insights on tax exemptions up to $250,000 and potential for tax-free profits in real estate. Learn how to reinvest tax savings to expand your property portfolio and maximize financial gains. Discover strategies for balancing cash flow and equity in real estate investments, focusing on long-term financial planning and building equity through smart acquisitions and value-add projects.

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Where’d all the cash flow go? More than ever, rental property owners are waking up to find less and less mailbox money coming in every month. This is doubly true for those who used low down payments to house hack and turned their properties into full-on rentals. So, what do you do if you have a rental property giving you low, no, or negative cash flow? Should you sell it and swap it for another investment or ride it out, betting on future appreciation gains? We’re giving our thoughts in this Seeing Greene!

As always, David and Rob are here to answer your pressing real estate investing questions. But resident yacht tycoon James Dainard also brings his twenty years of investing experience to the show to help this week’s rookie real estate investors. First, our very own Noah Bacon asks what he should do with a negative cash-flowing house hack that has six figures in tax-free equity. Then, we ask a question everyone wants an answer to, “WTF is wrong with investors these days?” If you want to turn your house into a rental property, stick around because two more investors ask whether it’s worth it AND when you can start writing off those lucrative real estate tax deductions.

Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can jump on a live Q&A and get your question answered on the spot!

In This Episode We Cover:

Whether to keep or sell a rental property that’s losing money every month

Appreciation vs. cash flow and why SO many new investors get this wrong

How to minimize your chance of negative cash flow by buying in THESE areas

Why some real estate markets appreciate while others rarely see price growth

Whether you should turn your primary into a rental property or buy an investment property instead

Real estate tax deductions and how long you have to wait to write them off

And So Much More!

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