We are going to net more income this year because we have been paying down all of our business and personal loans.
Problem: Our income taxes have tripled. I hate paying income taxes and especially the amount we will pay next April 15th.
Solution: Do nothing and bite the bullet. Or do as Rick is doing and buy another MHP that would have enough depreciation to offset the cash flow on our existing park. i really don’t want to have another MHP to think about and manage.
I really need some input here.
What do you guys think?
Mike
Mike
I love your dilemna. But if you dont want another community by no means buy one. They take a special energy and if you are not up for the task failure could be the result. Paying taxes is better than failure as you well know. I think you need advice from a CPA or Investment Specialist on how not to pay taxes. Are you a full time real estate investor? If so Start traveling the world or whatever looking for your next venture on Uncle Sams $$ That is my dime store advise. I love to fish in exotic places and you would be surprised how much real estate I have considered buying while hooked up to a tuna, salmon or a trout.
Best of luck
Mike, as Rick says, many will envy your position. It may be profitable to consult people like Karl Warner, Karl Kleiner or John Hyre, who are also in the M.H. business, and to buy an hour of their time. On the other hand, I believe that you have plenty of deferred repairs and maintenance: some of your homes are in need of new shingles, exterior painting, the porches are a bit hazardous, the entrance and the sign to your property are in need of repair. You know all that. We also know that these necessities cannot be addressed in one calendar year. But you could make the effort to re-roof, the worst half of a roof this year and the other half next year. You’d certainly get a start on any job this year, and as finances permit, complete your deferred repairs and maintenance during the next few years. The benefits are obvious as your park becomes more popular with tenants.