264: Rookie Reply: Building vs. Buying and Avoiding Capital Gains on a Sale

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 25 February 2023

⏱️ 51 minutes

🔗️ Recording | iTunes | RSS

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Summary

Weighing the costs and benefits of building versus buying rental properties? You’re not alone! When property prices go up, it makes sense that most of us start looking for loopholes. But the cost is only one thing to consider when it comes to real estate investing. Thankfully, Ashley and Tony have some tips for deciding which way to go. Welcome back to this week’s Rookie Reply! If you’ve ever considered building an investment property or buying a new construction, you’ll want to hear what our hosts have to say. We also touch on whether or not your attorney’s location matters when you’re investing out of state, and how to qualify for capital gains exemptions. Last but not least, we dig into the differences between W2 income and rental income when it comes to taxes, and why one is so much better than the other! If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover When your attorney’s location might matter and investing from afar Protecting yourself with partnership agreements in joint venture investing The pros and cons of building an investment property instead of rehabbing one How new construction properties can affect the refi seasoning period Maximizing your taxes with passive income Why moving every two years may be the smartest way to avoid taxes Using a 1031 exchange to defer paying capital gains taxes And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent Real Estate Rookie Facebook Group Real Estate Rookie Podcast How to (Legally) Avoid Taxes by Investing in Real Estate 10 Income Streams on 1 Property by “Land Hacking” w/ Kai Andrew Rookie Reply: Can You Put Offers on Multiple Houses? How an “I Don’t Want to Invest” Couple Became Successful Long-Distance Landlords with Annie and Trey Johnson Connect with Ashley and Tony: Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-264 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie Episode 264.
0:04.8	But oftentimes, if you do a new build in 2023 versus a rehabbed house that was built in 2005,
0:11.9	the value of that property, especially if you're looking at it as a short-term rental,
0:16.2	which is what we do, is typically higher. We can rehab a house that was built in 2005 to the
0:24.0	Nines, but the construction style, the aesthetic of a house built in 2023 is going to be more modern
0:31.5	than a house that was built in 2005, the universe rehabbed really nicely.
0:35.3	My name is Ashley Care, and I'm here with my co-host, Tony Robinson.
0:38.9	And welcome to the Real Estate Rookie Podcast, where every week, twice a week we bring you the
0:43.4	inspiration, motivation, and stories you need to hear to kickstart your investing journey.
0:47.9	And I want to start today's episode by shouting out someone by the username of
0:52.4	Lukester8891. Lukester, I love to say five-star review on Apple Podcasts. It says encouraging
0:58.0	podcasts, Tony and Ashley, their podcast is extremely informative and encouraging.
1:03.3	Thank you for creating a space to give people like me the knowledge and extra
1:08.0	nudge to feel confident about investing in Real Estate. And that really, I like the way you
1:13.5	phrase that, Lukester, for giving and creating a space to give people like me that space
1:18.3	feel confident. And that's really what the Real Estate Rookie Podcast is about, is that there's
1:22.0	so many, there's obviously a ton of information out there about investing in Real Estate, but
1:25.4	sometimes it can feel overwhelming, sometimes it can feel, I don't know, like just too much to
1:31.9	try and like drink it from a fire hose. And the purpose of the Rookie Podcast is to give every
1:37.2	single listener digestible, usable pieces of information and stories to really help move them
1:43.5	along in their journey. So if you all are listening and you haven't yet left this and honest
1:47.8	reading a review, please do the more reviews we get, more folks we can help and help them focus
	...

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