What the heck is depreciation recapture, or unrealized depreciation, or unrecaptured depreciation? You’ve owned a rental property for a few years, and it’s worked out pretty well. You’ve made a little bit of money most years. You’re looking forward to cashing out the profits! And then you get the tax bill. Oh my! You now… | Read More…
Capital Expenditures Matter: A Guide To Rental Real Estate
I answer a lot of questions about owning real estate, either a primary residence or rental property. One subject that folks often don’t consider is how much long-term capital expenditures matter. I thought I should make a spreadsheet to help people make a capital expenditure plan. And then I realized that my friend Dave Pere… | Read More…
If Your Rental Is Not Making Money, Stop Saying “It’s A Good Investment”
What makes a good investment? Well, it’s generally considered to be an investment that increases your net worth. And net worth is important – but so is cash in hand. As a financial educator, and a military landlord myself, I spend a lot of time talking to military families about their rental houses. In almost… | Read More…
What Military Landlords Should Know About Section 1250 Depreciation
This post was contributed by my friend Forrest Baumhover, a Certified Financial Planner. This is tricky stuff – hearing it explained different ways can make it easier to understand. I’ve written about the same subject at Understanding Depreciation Recapture Taxes on Rental Property. Just because you joined the military, you shouldn’t have to give up… | Read More…
Are You Ready To Be A Landlord? 5 Questions To Ask
You’re moving, and you’re trying to decide what to do with your house. Should you sell it, or should you rent it out? In the military, we face this decision more than most folks. Any military family who buys a house needs to be thinking about the all-important question, “Am I ready to be a… | Read More…
Eleven Real Estate Lessons I Learned as an Accidental Landlord
This is the story of my first house, which my wife and I bought in our twenties. Things worked out in the end, but there are some lessons that we learned that I would like to share with our military audience. You might find great success in your real estate transactions (although the successful people… | Read More…
The Math of Buying and Selling Houses, Military-Style
The topic of home ownership for military families is a hot one. I absolutely agree that there are many reasons that a military family may want to buy a house: the pleasure of being able to do whatever you want to the house, the guarantee that you won’t have to move mid-tour, the difficulty in… | Read More…
Ten Ways To Be A Great Landlord
Military families often find themselves as landlords, either on purpose or by accident. And while there is no test to become a landlord, there is a lot that you should know to be a successful landlord. Usually, I’m talking about the money side of the equation, but that’s not the only part. There’s a lot… | Read More…
When Selling Your House At A Loss Is The Right Choice
Military families have unique challenges when they buy a house. The biggest challenge is what to do with the house when you receive PCS orders a few years (or months!) later. Some folks bought the house with clear plans to turn it into a rental property, but the majority planned to sell, or didn’t have… | Read More…