--Have a business plan before investing in rental properties. Factor in cost of capital, taxes, potential vacancy rates, start up costs.
--Use attorney approved leases and rental agreements, even for short term rentals.
--Beware of tax and legal implications for day limits - 14 days a year for vacation rentals of a primary or vacation home property; and landlord tenant rights and obligations that kick in after 30 days of continuous rental.
--When accumulating and exchanging investment properties be aware of the opportunities and pitfalls for using tax deferred IRC 1031 exchanges. There is a 45 day limit for completing the transfer process of gain to another investment property; work with a qualified intermediary to avoid the problem of being taxed for "boot," that is, constructive receipt of real estate gains from the sale of an investment property.
--Pre-qualify for loans before shopping and work with a lender for at least 2 years prior to investing in income properties if your documentation is variable or otherwise subject to questioning.
--Consider issues around separate and community property and legal entities for holding property before making a purchase.
--Be aware of where the biggest opportunities may be locally for purchase of income property, adjacent to colleges and to employment or vacation centers.
--Research local rules about short term rentals before listing property on online rental platforms.
For more information on any or all of these topics send an email and we will forward these to the speakers for our evening.