Friday Weekly Q&A Call - 5/22/2026 · 🏠 Lower Taxes w/ Ryan

Friday Weekly Q&A Call - 5/22/2026

Here are the key takeaways from this call:

Tenant Screening

Recommended platforms: SmartMove (by TransUnion) and Turbo Tenant for long-term rentals; Zillow's embedded background check is good because tenants can reuse one paid check across multiple properties
Always screen tenants before placing them — skipping it leads to problems with payment, property condition, and difficult removals

Long-Term Rental Challenges

One participant's tenant (placed without screening) was paying late, maintaining the property poorly, and becoming a headache; the advice was to have a direct in-person conversation, reset expectations, and give a deadline before pursuing formal notice
Kansas law requires 30 days notice to vacate; always check your state's statute
A separate story highlighted a squatter situation where a tenant stopped paying rent for over a year — the takeaway was to set up automatic rent deposits and act quickly (visit property, hire a local eviction attorney) if payments stop

1031 Exchange Discussion

Proper 1031: sell a property, roll all proceeds into a replacement property within 45 days (identify 3 options) and close within 180 days — defers all capital gains and resets depreciation
Lazy 1031: sell, keep the cash, buy a new property later in the same year and use cost segregation to offset the gain — less efficient because it "uses up" your depreciation against the sale rather than offsetting other income
Consensus: the proper 1031 is almost always better

Mortgage & Payoff Strategy

Loans at ~4.25% are worth keeping — the money can likely earn more elsewhere (S&P 500 averages 8–10%, private notes at 8–10%, HYSAs near 4%)
Loans at 6.7–7%+ are worth paying off or refinancing

Property Improvements (for better tenants & higher rents)

Garage additions, fresh paint, epoxy garage floors, landscaping/mulch, wood accent walls, kitchen and bathroom updates all add meaningful value
Renovations also generate tax write-offs, especially with bonus depreciation on improvements

Tax Write-Offs for Rental Losses

Even if a tenant doesn't pay, your holding costs (mortgage interest, taxes, repairs, utilities) still create deductible losses
Attorney fees, travel to the property, and related expenses are all deductible
Passive losses not usable now carry forward until you have passive income or sell the property

General Mindset

Real estate is a business — screening, systems (automatic payments, bookkeeping tools like QuickBooks, Stessa, or Baselane), and proactive management matter
Consider whether the stress of active landlording fits your life goals; alternatives include syndications, oil & gas, retirement account contributions, and HSA funding for tax efficiency.

Thank you all for joining!

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