Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

Yowza. I took my HTZ donuts last week. Not gonna touch that with a ten foot pole right now.

 

I'm not a CPA. I don't rent part of my home, but my wife and I do have rentals.

Process to become a landlord is find a tenant. Voila! You're a landlord.

As for tax deductions - if you're leasing out a room in your house, I'd expect similar treatment to business use of a home office - the tax effects would be *partial* and relative to the overall space.

Here's a couple articles to get you started:
https://www.hrblock.com/tax-center/income/real-estate/renting-out-room-tax-implications/
https://www.investopedia.com/financial-edge/0312/how-renting-out-your-spare-room-can-backfire.aspx

 

first link doesn't work - but the second link I actually just read haha.

 

Also know that things need to be up to code rather than pulling a grandfather clause. I think. Like in my house we have awning windows in our bedrooms, which "legally" is not a means of egress so we couldn't rent the rooms. And "legally" our house is actually a 1 bedroom (we have a slider to the back yard). Stuff like that. (one more reason I will likely never end up a landlord ).



PS - I'll buy back into HTZ at 0.50$ if that happens.

 

Replaced first link, please try again.

https://www.hrblock.com/tax-center/income/real-estate/renting-out-room-tax-implications/

 

I get "oops! your offer could not be found"

EDIT: I just googled it and found the article that way

 

Yeah - and a lot of that stuff is extremely location dependent. Different states, counties, and even cities may have different requirements.

That happens I may treat it just like my original buy - money I expect not to see again.

 

Exactly, I tossed 25 bucks at 0.88 and got out at 3.55 like a bandit! that was a gamble. I'm willing to gamble again

Now to see how CHK is doing........

 

I didn't realize HTZ had halted and I've been trying to buy PUTS and they weren't moving at all...that explains it...some of the asks for long puts are at $999.99 right now

 

@Boyk1182 Looks like ARI plans to pay a good dividend one more time. I know you dumped it, I might see if it runs up the price a bit as it approaches ex div like happened with ladr and then get out.

 

I did, and I also sold out of CIM, which cut its dividend shortly after. I think I’m safe now, 26 Blue Chip S&P stocks and a big holding of SPHD, I doubt any of them will cut. I did lose probably over $100 a month in dividend income but I learned from it.

 

26, damn.

 

go check out biggerpockets. That’s the best resource for you, as it varies by location. But yes, I “househacked” when I bought my first home in 2010. I’m about $60k/5 years from paying it off and I’ve only paid one or two months of it with my own money.

 

Is that too many, not enough? Does portfolio value impact the right amount? I thought it was just about right.

 

Sweet deal. Every so often I do consider it. But the problem is I don't want to be back in an apartment building in the city, which is where I'd want to be renting if I was going to be renting. And I would want to live in the building and rent out the rest of it, rather than not be on site at all. We'll see. We're young, we still have time things could happen.

I'm paying mortgage with our own money and don't feel bad about it, to be honest. We have an awesome house, awesome area, worth it.


edit: Dropped MRO, moved it to NRGU. Once that drives up I'll probably cut out half that investment out and let the profits ride with my original investment into NRGU.

 

https://www.goodhousekeeping.com/life/money/a30611975/what-is-house-hacking/

 

GETTING CLOSE...I have an NRGU buy in at $4.50...It was $4.25 but it's very stable right now...

 

No, sounds great. I only have 16, now you made me feel inadequate

 

I Googled, read a lot of articles, probably spent a whole week figuring this out when I started. I can tell you what I learned, it was a lot more simple than I made it out to be.

First, make sure you're diversified between sectors (I started with S&P sector allocation and changed it to how I was more comfortable). Then, the most important part, the benefits of diversification go away after about 20 different stocks. It behaves like the index at that point. So, anything over 20 stocks could be considered too much, but I just like all of the companies I hold so I will keep them as long as they don't cut dividends.



https://www.investopedia.com/investing/dangers-over-diversifying-your-portfolio/

 

how did you collect rent? Did you write off all your taxes, expenses, etc? I'm trying to figure out how much it would be worth it vs uhhh.. under the table