Originally Posted by
Trip7
IMHO as high income airline pilots with access to even more earning power on our days off, SFR and heck even property less than 10 doors is not worth out time. As accredited investors being a limited partner on a large apartment complex or self storage unit is far more efficient use of time and resources.
Only caveat I would add is if you have a spouse that is either a real estate agent and/or willing to manage the property then SFR or AirBnB could yield substantial tax savings as a pilot could write off the depreciation against pilot W2 income if you can prove "material participation". DYODD/Consult with a tax professional
Pair the real estate professional with combined activity grouping for maximum tax benefit. DYODD and consult with a CPA who knows and preferrably invests in RE. This can be a huge windfall for high W2 earners. SFR is the most common way to qualify as a "Real Estate Professional" but there are other avenues including direct ownership or GP on larger properties. Cost segregation and bonus depreciation can make a huge difference when you are in a high marginal tax bracket.
I'm curious about the calculations for a pilot to qualify. Is the 50% of work based on credit hours, block hours, duty hours, TAFB hours, hours spent on reserve? If I am managing contractors while on LC or SC does that count as RE hours, pilot hours, both, neither? Can a single pilot get a RE license to qualify without meeting the 50% or 750 hour requirement?
How to increase your net worth in real estate:
1-Equity capture or value add
2-Cash flow
3-Loan amortization
4-Property appreciation
5-Tax savings