Moved my home to the other side of the balance sheet.

[Drew0311]

Hello everyone,

I have been working hard to right the financial ship over that last few years and I have recently pulled off something that I'm quite proud of. I found a killer deal on a multi-unit home ($52,000) that just needed minor repairs ($5,000) to get up and running. I knocked out the upstairs apt first and now have it leased out for $560/mo, which covers my mortgage and gives me an extra $168 to boot. I get to use my homestead and mortgage exemption which helps reduce my annual tax bill to a measly $482. Along with the deductions I can also depreciate the structure value over 27.5 years which also helps reduce my taxable income and I share my internet service with my tenants making this a business expense which basically cuts my bill in half for the year. Our goal is to max out our 401k's and save 50% after tax...we're not quite there yet but I'm sure it will not take very long.

In the eyes of most of my family members and peers I am a real weirdo for living like this, but I assure you...it's worth it.

Tips/suggestions are always welcome.

Drew

[ahoy]

It's sad to think that friends and family are thinking you are weird to live this like.  Plenty of people have tenants in their basements.   You would think that they would congratulate you on your smart decisions.  Always a good thing to have your house listed under "assets" not "liabilities".  Good job.

[Dicey]

Weird all the way to the bank, lol.
OMG, your numbers! What part of the world do you call home?

[Drew0311]

I live in LaPorte, IN.

[Guesl982374]

But what if you...gasp...hear your tenants walking around??? The horror.

[dandarc]

8 to 1 price to rent is not a myth!  And you're living in another unit!  If you rented both units, what, $1K rent at least?  So that's getting close to 4-1.

Seriously - good work.

[acroy]

Badass, thanks!

[CowboyAndIndian]

Serious Badass.

A couple more of these, and you could probably FIRE.

[alexb2746]

I actually talked my wife into us getting a duplex after our apartment lease is up to do this same thing, I think its the best way to live starting out/young; or probably anytime you need to! Then if and when you move out to a house or something, just rent out the other side.

[Dicey]

Unless you're providing the internet for your tenant, I'd be surprised if that "business expense" withstood IRS scrutiny. Check with a tax professional before you take that deduction.

Otherwise, good job!

[CowboyAndIndian]

Unless you're providing the internet for your tenant, I'd be surprised if that "business expense" withstood IRS scrutiny. Check with a tax professional before you take that deduction.

Diane, when I had my LLC, and I had a home office, I could take breaks for Phone/Internet. Of course, I had to take a prorated amount based on my personal use. Wonder if OP can use something lilke that?

Maybe some CPA on the forum with chime in with the rules?

[Drew0311]

The footsteps sound like freedom to me! I do share the wifi so I can legally write of 50% as a business expense. Thanks everyone! I have been riding my bike as much as possible and I already feel more badass.

[TomTX]

Unless you're providing the internet for your tenant, I'd be surprised if that "business expense" withstood IRS scrutiny. Check with a tax professional before you take that deduction.

Otherwise, good job!

Well, here is what OP wrote: "... and I share my internet service with my tenants making this a business expense..."