Mom and Pop Landlord Tax Strategies for 2021


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Mom and Pop landlords are property owners who own up to ten single family to 4 plex homes. They may own the property in single member LLCs or multi-member LLCs (usually with a spouse as a partner) or they may own the property in their own name.

The difference between Mom and Pop landlords is usually the type of property (single family to 4 plex), the number of properties (10 or fewer) and the way the properties are held (LLCs or personal name.) 

Corporate investors buy commercial properties and multi-unit residential properties. They usually invest through trusts, partnerships or corporations. And they own larger quantities of “doors” (rental units). 

The overall tax laws often seem the same between the Mom and Pop landlords and the commercial investors. 

The difference is in the investing strategies between Mom & Pop landlords and commercial investors. They are usually very different and since tax strategies depend on investment strategies, there are some big, important differences between the two.

This Intensive Webinar will concentrate just on Mom and Pop landlords and their investment and tax strategies. It will be part of the Wednesday coaching sessions on July 28, 2021. We’ll start at the regular 5 pm Pacific start time, but the webinar will be 90 minutes. So it will be longer than normal. If you can’t make it, it will be recorded and available for a limited time to Wednesday coaching members. After that, it will be available for replay on the website for a fee. 

Since tax strategies follow investment strategies, we’ll talk about those first.

Real Estate Investment Strategies for Mom & Pop Landlords

Five houses F and C. The five houses free & clear plan is a systematic plan that takes you through the steps necessary to end up with five houses with no debt. You’d be surprised how fast that can happen if you follow this plan. If your rent is $1500/house, that means you’d have $7,500 per month in rental income. Not a bad goal!

There are several variations to this investment strategy as well as the tax strategies that go with them. 

The 10-home plan. The 10-home plan relies on the federal subsidized loan program that gives you cheaper and better loans for the first 10 loans that you qualify for. Cheap money with low risk is a big part to building a real estate portfolio. Plus knowing how to take advantage of the tax savings that go along with it.

Buy and hold, forever. Another strategy is that you buy and hold property forever. Let passive appreciation run along with your tenant paying down your loan. Eventually, you will end up with free and clear property. It will just take a little longer. Tax can erode your plan, though. Tax strategies here are even more important. 

Using leverage. Debt makes a good real estate plan great and a bad real estate plan disastrous. Your numbers are important here and a solid tax strategy is critical. Do it wrong, and you’ll lose your investment and gains to taxes. 

Free and clear. Some people don’t like debt because of the risk that can be associated with it. If free & clear is your goal, your tax plan will be different than the tax plan for someone who is planning on leverage. It’s okay to switch investment strategies, just make sure your tax plan keeps up. 

Selling your property at a gain, selling your property at a loss, using seller carry, rent to own – all of these investment strategies require tax strategies.

Over the years, I’ve worked with clients who’ve followed these strategies and we’ve come up with the easiest accounting and tax formulas to follow. The book Less Tax for Mom and Pop Landlords has been delayed due to a tech issue with our website, but I didn’t want to delay launching the accompanying intensive workshop. 

The Intensive Workshop will be available, for a fee, when the book launches. 

Bonus Intensive Workshop for Mom & Pop Landlords

Special bonus for Wednesday Coaching students! You can watch it NOW as a special bonus for Wednesday Coaching students. If you’re not yet a member of the coaching program, you can join now and get the regular lessons on the 1st – 4th Wednesday evenings plus recordings form the past 3 months.

Don’t forget to join the Less Tax for Mom and Pop Landlords Intensive Workshop on July 28th at 5 pm Pacific. This will be available to all current Wednesday Coaching students. 



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