House of the Day: 449 6th Street
If you want a great house in a prime location but need a little extra rental income to pull it off, this new listing at 449 6th Street just might be the ticket. The four-story brownstone is divided up into two duplexes. The listing doesn’t say what one of them would rent for, but we’re…
If you want a great house in a prime location but need a little extra rental income to pull it off, this new listing at 449 6th Street just might be the ticket. The four-story brownstone is divided up into two duplexes. The listing doesn’t say what one of them would rent for, but we’re guessing around $4,500. With rates where they are, that should help cover almost a million bucks of your mortgage. Given the asking price of $2,300,000, that should get you almost halfway there to covering your monthly mortgage nut.
449 6th Street [Corcoran] GMAP P*Shark
My accountant responded:
“They go against all income including ordinary without limits.”
Donlad W. Carman
Albany Financial Planners
I highly recommend him. I will see him in 2 weeks and will buy him a drink courtesy of benson.
I will say one thing- the parlor floor kitchen seems almost half done. All the details are really nice but I’ve lived in rentals with more counter space. I realize that you can add more cabinetry but at this price I’d hope my microwave would not be living on a cart.
Let me confirm with my accountant and not just some anonymous blogger.
DIBS;
You owe a drink (see answer 1):
http://answers.yahoo.com/question/index?qid=20090315124259AAjwMpk
I’ll bring Twizzlers too. The red ones. Oh, and a secret stash of high color glossy gossip rags to surreptitiously peruse as the honking gets too noisy. I will, however, look up and cheer madly at first blood 😉
benson…ask some of your japanese colleagues what they think of Asashoryu. He’s a sumo that just got kicked out because of incredibly bad behaviour but he’s also Mongolian, which was probably the underlying reason.
I’ll forward you an anlysis of the situation from a friend. It has gotten more press over there lately than Toyota.
Wow, ringside seats for the 2010 DIBS-Benson Schedule E smackdown! Want a beer and some popcorn, noki?
Deal, benson. I’ll email my accountant and forward the email to you.
If you paid $2MM for the house and you determine that 50% of the spave is attributable to the income producing unit then you deduct ($2mm * 0.5)/ 26.5 = $37,735 every year as amortization expense. This is a non-cash expense and that’s how you easily get to an accounting (IRS) loss even if there’s no mortgage and no mortgage interest expense (unlikely).
* I think it’s 26.5 years , it may be 27.5 or something slightly different.
As the mortgage interest goes away and after you’ve owned it for 26.5 years, the amortization disapears and all those accumulated losses will offset the income that you start to see. In reality, your cash flow will remain the same, more or less.