Are you curious about the IRR formula because you want to model expected returns from a potential real estate investment? Maybe you just sold a rental property and are wondering how to calculate your all-in return over the life of the deal? Well, unless you have a master’s degree in mathematics or finance, the actual…
While this is clearly not an exhaustive list of all 1031 exchange rules, it’s a great place to start. Section 1031 of the tax code has been around for a long time and the IRS has provided various notices with highly specific guidance for specific edge case scenarios. You should definitely research these on your…
Have you ever wondered why landlords require renters insurance? Don’t they have their own insurance? Why should a landlord care what happens to a tenant’s personal belongings? Isn’t it up to the tenant to decide whether that 60″ flat screen TV and a closet full of designer jeans is worth insuring? What’s going on here?…
When it comes to tourism, Hawaii has always punched way above its weight class. Nearly 10 million tourists visited the islands in 2018, with nearly 80% of those visits accounted for between Oahu and Maui alone. That’s more than seven annual tourists for every permanent resident! It’s no wonder Oahu Airbnb laws are now some…
When it comes to real estate investing, there’s a metric for every situation. Knowing when to use return on equity instead of cash on cash for example, is the sign of an educated investor. In this article we’ll quickly dissect the return on equity calculation for real estate and then explore its usefulness for making…
The best way to learn how to invest in real estate is to get into an actual deal as soon as you possibly can. Beg, borrow, or steal to make it happen and you’ll learn more that you ever wanted to know about how it all works. But once you’ve done that, you may start…
Anyone who’s owned a rental property and shopped around for landlord insurance will tell you that the process leaves much to be desired. Landlord insurance can be quite expensive and often runs 25% more than comparable homeowners insurance would for the same property. That means it’s in your interest to get multiple quotes, preferably on…
With coronavirus case counts rising steadily around the US, short term rental hosts are in for a rough few months. No one’s traveling due to quarantine restrictions and advance bookings have fallen off a cliff. Sadly, Airbnb seems intent on making things even worse for its own hosts. When the company decided to unilaterally grant…
We all read Hippos Go Berserk when we were kids. I still remember that one party animal dancing on the roof underneath the starry sky! No Airbnb host wants to live a real life version of that story. Always knowing exactly who and precisely how many “whos” are eating, sleeping, and otherwise living it up…
Separate Bank Accounts for Rental Properties Say what you want about the “sharing economy.” At the end of the day, your rental property activities constitute a business venture. Whether you rent out your home for a few weeks here and there or operate a growing portfolio of long-term rentals or Airbnbs, your tenants and guests…